Hatchback News

Toyota is in danger of being overtaken by BYD.By retreating upmarket, it also risks losing the loyalty of a generation of buyers, especially younger ones, destroying the bedrock of the brand’s success in Australia.Toyota is still the world leader and dominant force in Australia, but that could all fall apart if it gets complacent.Yes, Toyota has been number one every year since 2003, and remains the richest car company in the world after Tesla.But BYD and other Chinese brands like Chery are cutting its lunch.Toyota’s year-to-date (YTD) sales have tumbled 20 per cent, from 142,700 to 115,550 units, while market share has shrunken from 20 per cent to 16.3 per cent.In contrast, BYD’s YTD sales have jumped, from 28,000 to nearly 61,000 units while share has expanded from 3.9 per cent to 8.5 per cent.Toyota assumed its premium, hybrid-heavy strategy would prevail.But BYD’s cheaper electric vehicles (EVs) and plug-in hybrid EVs (PHEV) are both more affordable and available, while Chery, MG and others clean up in the sub-$30,000 drive-away classes that Toyota abandoned in 2024. Coincidence?Reportedly sitting on a $A96.5 billion war chest, Toyota can shore up customer loyalty by once again offering more-affordable vehicles that Australians want.Playing the long game, not the wrong game, the Japanese brand’s models already have the reputation for reliability, durability and quality required to remain number one.We understand. Today’s Yaris from $29,190 before on-road costs is measurably superior to its 2019 predecessor. But that’s a moot point for buyers who cannot stretch another $10,000-plus to own one.Here, then, are the Toyotas we reckon Australia needs right now.Although it is an all-new model in a segment Toyota has not bothered with for decades, the LandCruiser FJ is anything but ‘all-new’ underneath.Derived from the IMV architecture that is already two decades old beneath the HiLux, this compact SUV is a Thai-built body-on-frame, off-road-ready 4x4 with the Suzuki Jimny in its crosshairs.Surely that makes the LandCruiser FJ a natural for Australia?Well… no. The biggest drawback seems to be the equally ancient 2TR-FE I4 2.7-litre four-cylinder petrol engine that Toyota had to drop from the latest HiLux range due to non-compliance with our increasingly tough emissions.There is speculation galore about a hybrid alternative happening sometime in the future, and – if true – then that’s what we would expect a locally bound LandCruiser FJ to be powered by.It seems unfathomable Toyota would create an SUV with classic FJ40 retro design cues, yet not engineer a powertrain suitable for LandCruiser-obsessed Australia.As a BYD Atto 2 beater, this hybrid is a no-brainer.Japan’s second best-selling vehicle YTD after the Yaris/Yaris Cross duo on which it is based upon, Sienta is a portmanteau of siete, Spanish for ‘seven’, and ‘entertain’.And there-in lays this Toyota’s appeal.Essentially a Yaris MPV that majors on packaging, it features sliding doors and space for up to seven (hence the name), with the optional third-row seating ingeniously dropping underneath the middle bench for an instant big cavity.Along with Sienta’s eye-catching Fiat Panda-esque design and capable Yaris underpinnings, it is little wonder both hipsters and artificial-hip buyers alike have fallen for the tall-boy Toyota’s charms.Finally, a growing army of ex-Japan used imports here is further proof of concept.Developed and built by Toyota sub-brand Daihatsu (which markets it as Rocky – a tiny but tough off-roader in the style of the Suzuki Jimny), the Raize would slip in as an entry-level high-riding crossover.At round four metres long, this chunky, high-riding, monocoque-bodied urban crossover employs a unique, lower-cost architecture to help keep prices down in the South East Asian region, without scrimping on safety tech.This would make it ideal as a sub-$30,000 light SUV targeting the likes of the BYD Atto 1, Hyundai Venue and Mahindra XUV 3XO.Engine options include a 1.0-litre three-cylinder petrol or 1.2-litre hybrid version.A podium seller in Japan this year, the Raize is another used import from appearing on Australian roads, and it’s not difficult to see why.The original Prius of 2001 was a toe-in-the-water exercise in Australia. Its 2003 and 2009 successors proved to be successful brand builders as hybrid pioneers.But the 2016 redesign was so insectoid in appearance that buyers were repelled en-masse, despite being the first of the vastly-improved TNGA-platform Toyotas available here.That’s why the company passed on the fifth iteration locally, but what subsequently surfaced remains one of the most beautiful modern hatchbacks of this decade.Nowadays, with the dramatic uptake of PHEV as well as hybrid vehicles, Toyota admits it is gunning for the Prius’ return as a result, but it may take a while yet.Great design is timeless and, even from $40,000 as a BYD Seal 6 PHEV rival, the latest Prius would attract plenty of non-traditional Toyota buyers.It seems inevitable that a Grand Kluger will eventually appear in Australia, but when is the big question.Built in the USA as the Grand Highlander, this is a larger and longer take on the existing Kluger/Highlander model that it has essentially usurped.Born to battle the ultra-successful Kia Telluride and Hyundai Palisade in North America, the grandest of Toyota’s on-road SUVs is a far-roomier – and prettier – big family hauler as a consequence.It is also soon to be joined by an unrelated, all-electric SUV taking over the regular Highlander name and production line – a decision that was clearly made before the current, anti-EV US administration came into power.This mean the days of the current Kluger as we know it in Australia seem to be numbered, with no hybrid replacement in sight – except for a right-hand drive version of the Grand Highlander.The perfect foil for the BYD Sealion 8 PHEV!

Close to 60,000 Mercedes-Benz cars sold new in Australia between 2018 and 2026 are the subject of a safety recall relating to a potential door lock failure that may result in unintended vehicle movement. The Federal Department of Infrastructure, Transport, Regional Development, Communication and the Arts has issued a safety recall notice impacting 58,822 Mercedes-Benz vehicles across a wide range of Mercedes-Benz and Mercedes-AMG models.It confirms examples of the A-Class, CLA, B-Class, C-Class, EQA, GLA, GLB and GLC  have been impacted and said, “Due to a manufacturing defect, the door-lock microswitch may be susceptible to water damage and could fail.“If this occurs, the door may not be detected as open, preventing the auto park feature from operating as intended,” the notice said. The department added, “A loss of (the) auto park feature may result in unintended vehicle movement. “This increases the risk of an accident, causing injury or death to vehicle occupants and other road users.”Multiple grades of the nominated models are included, and the department says drivers should always engage the Park position on the gear selector and apply the parking brake, as described in the Owner’s Manual, prior to leaving the vehicle.Owners of affected vehicles will be contacted by Mercedes-Benz in writing asking them to schedule an appointment with their preferred authorised dealer for the free of charge repair when parts become available.Alternatively, the Mercedes-Benz Customer Assistance Centre can be contacted on 1300 762 718 or via cs.aus@cac.mercedes-benz.com.

Small cars and light cars aren’t nearly as popular as they once were, but that could be changing thanks to the increasing accessibility of electric cars, said one new brand’s product boss.Geely's Director of Product Planning and Marketing Andrew Tuitahi said he sees “promising signs” for small and light car segments.While the sales figures aren’t proof at this stage, with EVs making people consider a smaller car than they might otherwise buy.“I can't say that it's saved, but there's definitely some promising signs,” Tuitahi told CarsGuide. “The unique thing that ‘new energy’, battery electric plug-in hybrids are doing is causing people to reconsider.”Tuitahi said the downsides once associated with light and small cars are more and more being addressed by new compact EVs, after earlier in the day having pointed out the healthy list of features in the Geely EX2.“So a lot of the compromises that you typically make if you were going to buy a b-segment or a light hatchback - things like drivetrain, power, performance, safety, style, you know, space - a lot of those things are solved with a battery electric platform. “So I think consumers are able to prioritise maybe some features by sacrificing a segment, but still getting that same space.”While the EX2 does cover much of the above, it should be pointed out its entry grade has a very modest 60kW output in the base Complete variant, or 80kW in the Inspire.Tuitahi added that along with the price and the overall size of the car, the range of a small EV is less a priority than it would be in larger EVs that are more likely to be used on long trips.“It really depends on the use case,” he said.“So we'd be encouraging our dealers to work with customers to help identify how they're going to be using their cars and whether or not they need that range. “You know… looking at the average kilometers traveled, certainly someone charging once a week would be within that range for an EX2. “Someone who can trickle charge every day is never going to be less than 70 or 80 per cent battery. So, it really comes down to use case.”

2026 has been a watershed year for new vehicle sales in Australia, with the tsunami of new challenger brands from China continuing to pound our shores with full-force.It’s upset the established order on the industry leaderboard, with BYD (up 115 per cent) charging into second spot through the end of July, and sending a shudder through the hallowed halls of traditional number one, Toyota Australia, and unceremoniously relegating Ford to the third step of the podium.The rapid rise of Chery (up 71.3 per cent) and GWM (up 16.6 per cent YTD) has meant former high-ranking top 10 regulars Mazda and Hyundai have been shuffled down the order, with Mitsubishi hanging on by the skin of its teeth in tenth. A resurgent Tesla (up 88.3 per cent) sits in ninth spot, but Nissan (-33.7 per cent) and Subaru (-26.2 per cent) are out of the top 10 picture altogether.Question is, what does this furious churn of customers mean for overall sales? Is the market likely to expand, or given its historical stability, come in close to previous years?If it’s the latter, the financial writing could be on the wall for those legacy brands losing market share to newcomers offering fancy, typically electrified models full of bells and whistles at aggressive price points.So, let's start at the top. After a faltering start to the year marked by supply shortfalls of the in-demand RAV4 and HiLux, Toyota looks to be in the midst of staging a monumental comeback.RAV4 is still down over 25 per cent compared to the same point in 2025 and HiLux is close to 12 per cent behind, but in early June, Toyota Australia announced it had secured an additional 10,000 vehicles for 2026.And since then, the company said it has “worked closely with its global partners to secure further stock to help satisfy strong demand”. In fact, Toyota Australia Vice President Sales, Marketing and Franchise Operations John Pappas has said, "Increased supply of key models including HiLux, RAV4, Corolla Cross and bZ4X would play a key role in Toyota passing the 230,000 sales target for 2026.”It’s worth noting Toyota was the leader in 2025 with 239,863 sales, representing approximately 19.8 per cent of the total market.Which means normal programming is set to resume in terms of Toyota’s numbers and the Japanese giant’s first place positioning.But what about that cheeky upstart, BYD, riding high on the back of continued demand for its Shark 6 petrol-electric hybrid ute and the surging popularity of its Sealion 7 medium EV SUV.In fact everything from the new Atto 1 light electric hatch and Atto 2 compact EV SUV to the Sealion 5 and Sealion 8 SUVs are firing.In terms of a 2026 prediction, all BYD has said is it “would like to be in the top three by the end of the year.” We’d suggest that’ll mean a number in excess of 80,000 units and with 2025 second and third place finishers Ford and Mazda down 10.8 and 16.7 per cent, respectively so far this year, BYD’s aspiration looks well within reach. A total of 103,656 new vehicles were registered in Australia in July this year, which represents a modest 0.5 per cent increase over the same month last year (103,097 units) with the overall year-to-date number down just 0.2 per cent (710,449 vs 711,908 units).So, all this moving and shaking in the sales order clearly isn’t shifting the needle in terms of overall sales. One brand’s loss is another brand’s gain.The sales trend and numbers as they stand for 2026 so far point towards a year-end figure in the vicinity of 1.22 million units, which would be only fractionally up on the 1.21 million cars sold here last year.Economics 101 says in a mature, stable market that’s invaded by a host of new competitors, something’s got to give.Not every brand will get out of the Aussie new car sales race alive and the winners and losers over the next five months will be a telling pointer to which brands, new and not-so-new, are potentially heading towards the departure lounge longer-term.       Source: VFacts / Electric Vehicle Council 

Two of Audi’s most affordable models are headed for the chopping block in Australia after production ended earlier this year.Audi Australia has confirmed there is only dealer stock remaining of the A1 hatchback and Q2 small SUV. Global production for both vehicles ceased in April 2026.“Once it's gone, it’s gone,” said Australia Australia Managing Director Jeff Mannering to CarsGuide.“There's still some in stock here in Australia, so just need to contact their local dealer because every dealer is in a different scenario,” added Audi Australia PR Manager Claudia Muller.The Audi A1 and Q2 were the German brand’s most affordable models in Australia.In the end only a single 40 TFSI S Line trim of the A1 is now available and it’s currently priced from $51,500, before on-road costs.Then with the Q2 an entry-level 35 TFSI is available from $49,400, before on-roads, as well as a Q2 35 TFSI S Line edition at $50,900, before on-road costs.Once remaining stock of the A1 and Q2 have been sold, the next most affordable Audi in Australia will be the A3 TFSI 100kW hatchback at $54,800, before on-road costs.The original Audi A1 was first revealed in production guise in 2008 and over its lifecycle there have been two generations. The second-generation launched locally in 2019.The A1 is based on the same Volkswagen Group MQB A0 platform as the current Volkswagen Polo.Then the Q2 was revealed in 2016 and launched locally in 2017. Although there have been numerous updates, only one generation of this small SUV has been offered.The Q2 is based on the same Volkswagen Group MQB A1 platform as the Skoda Karoq and outgoing Volkswagen T-Roc, among others.Both the A1 and Q2 formed as entry-level models to the Audi line-up both locally and globally. However, sales have declined over recent years and the German carmaker instead pivoted to other segments where there are more sales to be had.Although Audi is discontinuing two of its most affordable models in Australia, it’s gearing up to globally reveal the new A2 e-tron in November.This new electric hatchback will be the brand’s new entry-level model globally. At this stage there’s no word on whether it will come to Australia.It’s based on a version of the MEB+ platform that underpins the likes of the Volkswagen ID.Polo and ID. Cross, Skoda Epiq and Cupra Raval.Multiple versions of the A2 e-tron will be offered but, depending on the variant, total system outputs are up to 240kW/545Nm and WLTP-claimed range is up to 476km.

The Geely EX2 is already due for fresh competition in Australia. GAC has confirmed a cheaper variant of its Aion UT electric hatchback will be coming to Australia before the end of the year. The Aion UT launched in April 2026 as GAC’s affordable EV option, starting from $31,990, before on-road costs.It trailed cheaper rivals the BYD Dolphin ($29,990) and Geely EX2 ($26,490) on the sales charts in July.GAC has big ambitions in Australia, with a new base Aion UT expected to narrow the price gap on its closest competitors. The ‘short-range’ Aion UT will have a smaller 44kWh battery compared to the 60kWh unit found in the current grades on sale Down Under. It will offer a driving range of 320km, according to WLTP standards, compared to 430km available on its more expensive siblings. GAC has not revealed output figures for the car, but overseas variants have a front-mounted electric motor making 100kW/145Nm, down from 150kW/210Nm on current Aussie stock.  The cheaper Aion UT could also forgo some of the features on up-specs variants, but more details will be confirmed close to launch. The car has been officially earmarked for Aussie arrival in late Q4 2026, but CarsGuide understands it will launch specifically in December.There is no official news on how much GAC’s new Aion UT variant will cost, but the brand is eager for it to compete with the cheapest rivals on the market. We know it will be offered from less than the $31,990 price tag attached to car's current base grade.It starts in China from 102,000 yuan (or about $22,000), but models imported into Australia usually inherit a 20 per cent hike, so it is more likely to be priced from around $27,000-plus.

Where are you right now? Because that’s where you were when you found out that the price of EVs globally fell below those of hybrids in this historic first for the auto industry.According to a report from car industry analytics company Mobility Global which studied pricing automotive data from around the world the average price of electric vehicles has not only fallen dramatically but has now even dropped below that of hybrids.The report shows that the average global price of an electric car is $52,373, a decrease of nine per cent compared to 2020 EV prices. At the same time the global average price of hybrids increased to $55,204 making them more expensive than EV for the first time.Mobility Global cites the lower cost of EV batteries and the rapid expansion of affordable Chinese electric vehicles on offer as the main drivers of the price decrease.The price of lithium which goes into high-voltage EV batteries has dropped due to a surplus in China which controls about 80 per cent of the market. The cost of an EV’s battery accounts for about 40 percent of the car’s total build price. The lower lithium prices have caused the price of batteries to drop by an estimated 37 per cent since 2020.Australia has recently seen an enormous uptake of EVs. June and July this year saw EV sales break records, securing more than 20 per cent of the market in both months.  While prices have fallen vastly in Australia CarsGuide calculated the average price of EVs is still slightly above those of hybrids locally. Using pricing data from August, 2026 CarsGuide calculated the average price of battery electric vehicles to be approximately $100,135, down from approximately $104,091 in August, 2025. We also calculated the average price of hybrids (including plug-in hybrids) in August, 2026 - approximately $93,767, that’s down from approximately $98,682 in August, 2025.Sounds high? Well, as a reference point CarsGuide also found that the average price of petrol cars in Australia is approximately $90,545.All figures were calculated by dividing the sum total of prices for each category (BEV, hybrid, petrol) by the number of models (including the variants) within the category. That means even the super high end models are counted along with the very cheapest.Still, the price of EVs in Australia has never been so low. The BYD Atto 1 is the most affordable electric car in Australia at a list price of $23,990 for the Essential grade. This is followed by the Geely EX2 Complete for $26,490, the BYD Dolphin Essential at $29,990 and BYD Atto 2 for $31,990.  

Geely has powered up the sales chart in July, making the top 10 best-selling brands for the month.The Chinese brand launched in Australia in March 2025, and has approached the local market with a more methodical approach than its competitors. It has only introduced three models so far, contrasting BYD that already has more than 10 models on sale since its distribution takeover in July 2025.Despite this relatively small footprint, Geely captured 3.6 per cent of total new car sales in July.Geely has grown by more than 500 per cent in the first seven months of the year, compared to the same period in 2025.  Geely's success has largely been driven by the EX5 electric mid-size SUV that managed 2034 registrations last month - its best month yet. The Toyota RAV4-sized EX5 is Geely’s best-selling car on sale in Australia, with nearly 9000 sales so far this year.Starting from $41,990 (before on-road costs), it continues to outsell the smaller BYD Atto 3 ($39,990) and eat into the sales of petrol rivals such as the Mazda CX-5 ($39,990).There are limited other fully-electric rivals with similar dimensions to the EX5, potentially giving it an edge in showrooms. It’s not just the EX5 selling well for Geely, with its smaller EX2 sibling registering 474 examples in its first few weeks on sale.The brand only introduced its new hatch with a sharp $26,490 price tag in late July, making it one of the cheapest electric cars on the market. The EX2, which is the most popular car in China, even managed to shift more units than the BYD Dolphin ($29,990) in July.The Starray Em-i plug-in hybrid mid-size SUV is Geely’s other model on sale in Australia, also enjoying a strong sales return, with 1177 units finding new homes last month.It poses as a direct threat to the BYD Sealion 6 ($42,990) and the recently-launched Toyota RAV4 plug-in hybrid ($59,515), but is noticeably cheaper at $37,490. Geely will continue to introduce new models at its own pace, with potential for some activity before the end of the year.  The brand is expected to launch a mid-size and a large SUV in the first half of 2027, followed by the Emgrand plug-in hybrid sedan later on in the year. The Galaxy Cruiser large rugged 4WD is also expected to land Down Under before the end of next year. 

Smart, the electric brand formed by automotive power couple Mercedes-Benz and Geely, is hinting that the arrival its smallest car the #2 is near as colour murals appear around the world including Australia.Paris, Shanghai, Hong Kong and Melbourne have all seen advertisements in the form of hand painted murals pop up in their cities recently.Melbourne’s version features the small red two-door hatch against a backdrop of the city’s landmarks including Flinders St Station and a tram with the tagline “It’s back #2.”The only Smart models currently available are the #1 small SUV and the #3 mid-sized SUV. The “It’s back” tagline is referring to the original Smart Fortwo tiny hatch which was popular in Australia when the brand first landed here more than 20 years ago.The Smart #2 is only 100mm longer than the original Fortwo at a diminutive 2792mm end-to-end and also has just two seats but this time around it will be a bench seat which the company says creates more cabin room.The little city hatch will be fully electric and is expected to have a 35kWh battery and about 300km of driving range from a full charge. Fast DC charging from 10-80 percent will take just 20 minutes, Smart says.Smart Global CMO Kang Yi, said the Smart #2 was designed to express individuality and playfulness.“The Smart #2 is the evolution of a revolution,” he said “We designed this vehicle to bring playfulness, premium sophistication, and effortless agility back to the modern urban jungle. By teasing our defining halo product through this unconventional artistic exposure, we are building immense anticipation for its return and showcasing our commitment to creating vehicles that are not just means of transportation, but true expressions of individuality.”The Smart #2 will make its global debut at the Paris motor show in October.As for its arrival locally despite the marketing proclaiming the Smart #2 to be back in Melbourne, Smart's Australian distributor told CarsGuide the vehicle was not confirmed for our market.If it was to launch here it wouldn't be until 2027.

This budget EV is about to get even cheaper for Aussie buyers. GAC is preparing to launch an ultra-affordable variant of its Aion UT electric hatch Down Under before the end of this year. This variant will become the new entry level to the Aion UT range, priced from less than the current Premium grade ($31,990, drive-away).It will give GAC a direct rival to other affordable-pitched electric hatchback variants the BYD Dolphin ($29,990) and incoming Geely EX2 ($26,490), both before on-road costs.Here is what we know about it so far.It will have a smaller battery than the 60kWh unit currently available in Australia.The Aion UT is offered in China with 35kWh and 44kWh battery variants. It is more likely GAC brings the 44kWh battery, offering a driving range of 330km, according to more generous CLTC standards.The current 60kWh Aion UT on offer in Australia comes with significantly more range at 430km (WLTP).The incoming more affordable variant has a front-mounted electric motor, producing 100kW according to overseas specs, compared to the 150kW output of its up-spec sibling. Other details on the car remain scarce, with the hatchback still going through its final checks before an official announcement. The new Aion UT variant does not have an official launch date, but it is expected to be here before the end of the year. The car has not been approved for sale yet, meaning it will likely launch in late Q4 2026, potentially December.While we don't have an exact Aussie price for it yet, it will be less than $30,000 when it arrives here.The 44kWh battery Aion UT is priced in China up to 102,000 yen, which is roughly $22,000. Cars from China usually carry around a 20 per cent hike when put on sale here, suggesting a potential price of around $27,000.