Hatchback News

Buyers are abandoning their supposed skepticism of Chinese carmakers, with affordability proving a key factor in buying decision-making. According to The Next Gear - Australia in Motion data from Gumtree Group (owner of CarsGuide), which surveyed more than 4000 prospective car buyers, 57 per cent of respondents said the country of origin for a car is an important factor in the purchasing process.Further, 42 per cent of respondents said they were unlikely to consider buying a vehicle from a brand originating in China. Unlikelihood to consider buying car from brand originating in following countries Sales data tells a different story. For February 2026 sales, China became the biggest country of origin for new-car sales in Australia. Gumtree Group's data also shows 11 Chinese-owned brands appear in Australian consideration sets. Brands BYD, GWM and Chery were all in the top 10 best-selling carmakers for February 2026, combining for nearly 15,000 sales for the month. China overtook Japan, which 71 per cent of respondents said they would likely consider buying a vehicle with that country of origin. China’s dominance in Australia is only going to increase from here, with many manufacturers offering budget EV options in a market where EVs are increasing of interest to buyers. Mainstream car makers are also starting to shift production across to China, either re-badging Chinese cars or manufacturing cars there.This offers brands the potential to build for and import cars to Australia cheaper, enabling more competitive prices. For example, the highly-anticipated Mazda 6e launching soon in Australia, is a re-skinned version of the Deepal L07, while many of Tesla’s popular EVs are built in China. This comparative cheapness is driving buyers to abandon their brand origin preference.Chinese-made cars are among some of the cheapest on the market, especially in the EV space, such as BYD’s Atto 1, Atto 2 and Dolphin, which are three cheapest new EVs in Australia. It is a similar story for internal combustion powered cars, with the MG3 currently available for under $20K as one example.

Toyota has taken the covers off the next version of its critically-acclaimed GR Yaris hot hatch, dubbed the Type 26.This GR Yaris upgrade will hit dealers imminently in Japan and carries with it a host of tweaks, which Toyota says come directly from the car being used in motorsport applications. CarsGuide understands this suite of upgrades will be phased into the current model later in 2026 for export markets like Australia.The 2026 versions of the car include a completely new steering wheel, which Toyota says was developed by professional race drivers. It replaces the standard steering wheel that is simply a tweaked version of the mainstream Yaris steering wheel.The upgraded version makes a special point of moving the buttons closer to the centre of the wheel to make them easier to use with less chance of accidentally pressing a in motorsport scenarios. It also separates the functions out into separate buttons and adds illumination for easier usability in a variety of scenarios. It also has an overall reduced diameter.The power steering has also been tweaked alongside changes to torsion bar rigidity for better response with high-grip tyres, under braking, and when engaging in high-load cornering. The torque detection range has also increased to add assistance when cornering.Higher grade versions of the car have also had specially-developed Bridgestone Potenza Race tyres added to the car as standard which are said to improve control, stability, and performance. Toyota said it has also made optimisation tweaks to both the front and rear shock absorbers to maximise tyre performance.In addition, seat heating and steering wheel heating can now be optionally chosen on cars when selecting the vertical parking brake interior.The Type 26 maintains the same three-cylinder turbocharged petrol engine (224kW/400Nm) with either a six-speed manual transmission or the GR-specific eight-speed automatic transmission. It features both front and rear limited slip differentials to go with its all-wheel drive system and BBS-developed forged aluminium wheels.The current car costs from $55,490 for the GT manual with a six-speed manual, and reaches to $62,990 for the GTS Auto.The four-seater hot hatch received its last update as recently as 2025 in Australia, where it scored an aero package and overhauled interior layout also based on driver feedback, which further diverged it from the mainline Yaris hatch.Expect more information about when the GR Yaris updates will hit Australia later in the year.

The BYD Atto 3 is now one of the brand’s oldest vehicles it still sells locally but a major upgrade could soon be on the horizon.A filing on China’s Ministry of Industry and Information Technology (MIIT) database, as reported by AutoHome, shows BYD is readying a new version of the Yuan Plus, which is the domestic name for the Atto 3 electric SUV sold in Australia.Featuring revised exterior styling cues like flush door handles, slimmer headlights, a full-width rear tail-light bar, plus different front and rear fascias, this new version of the Atto 3 has also grown in size.The MIIT filing notes it measures in at 4665mm long, 1895mm wide and 1675mm tall with a 2770mm wheelbase. This makes it 210mm longer, 20mm wider and 60mm taller than the current Atto 3 and closer in size to the likes of the mid-sized Kia EV5.Power reportedly comes from a rear-mounted electric motor which will be offered in two different power outputs – 200kW and 240kW.It’s fed by a lithium iron phosphate (LFP) BYD Blade battery with an unknown capacity. Reports indicate that it could be a second-generation Blade battery, potentially meaning quicker charging, energy density and reduced degradation.Other notable details on the MIIT filing include the availability of 18- and 19-inch alloy wheels, as well as two-tone exterior paint colour finishes.The current BYD Atto 3, known as the Yuan Plus in China, went on sale in Australia in late 2022 when the brand relaunched locally.It has received one update since its launch which included some visual tweaks, a bigger touchscreen multimedia system, as well as different standard-fit tyres.There are two variants currently offered in Australia – the Essential and Premium. Both are powered by a 150kW front-mounted electric motor which is fed by either a 50kW or 60.4kWh LFP Blade battery.Overseas BYD has already launched the Atto 3 Evo which takes the current model and switches it from front- to rear-wheel drive, plus there’s an available dual-motor all-wheel drive powertrain.Additionally there’s a larger 74.8kWh LFP Blade battery that offers up to 510km of CLTC claimed range. It operates on an 800V electrical architecture, allowing for a quicker DC fast-charging rate of up to 220kW.Other notable changes with the Atto 3 Evo includes revised rear suspension, a bigger boot, the addition of a front boot and a repositioned gear selector.Prototype versions of the Atto 3 Evo have previously been spied in Australia, indicating a local launch is on the cards.It’s unclear whether this new-generation version of the Atto 3 will eventually come to Australia, or if it will be a China-only model.

China is dominating Australian new-car sales, but it’s also not alone, with a handful of legacy brands bucking the trend to somehow grow their sales in the face of BYD, Chery and GWM’s continued ascent.

Volkswagen has confirmed a facelift for its ID.3 electric car which is set to be revealed next month. It will even have a new name to go with it.The 2026 VW ID.3 Neo is set to debut in mid-April this year as a facelifted version of the brand’s hatchback EV, along with a raft of updates for the rest of the brand’s ID line-up.The ID.3, which hasn’t yet launched in Australia to join the larger ID.4 and ID.5, was launched globally in 2020 as an electric spiritual successor to the Volkswagen Golf.VW hasn’t yet detailed the update, though expect significant design tweaks along with additions like “enhanced Travel Assist with traffic light detection” and the inclusion of one-pedal driving in the EV hatch.The ID.4, ID.5 and ID.7 have also received a tech update as well as the addition of V2L capability, though the ID.7 is also unavailable in Australia at this stage.VW’s head of Technical Development Kai Grünitz says the updates provide “more performance and an even better customer experience” for the models, and confirmed the next series of ID models to launch (ID. Polo, ID. Polo GTI, ID. Cross) will come with the same features.CarsGuide has contacted VW Australia for word on whether the announcement of the ID.3 Neo changes the brand’s decision not to bring the electric hatch to Australia.In 2025, Volkswagen Australia saw 1196 sales of the ID.4 and 386 ID.5s sold, though with the model still fresh to the market 12 months ago, early 2026 sales are difficult to use as a gauge of the brand’s EV success.

Toyota’s undisputed hybrid dominance continued in the past year but with new emissions laws closing in, more brands are vying for a slice of the fuel-sipping hybrid market.The biggest success story so far appears to be Hyundai, which has moved to electrify some of its top-selling nameplates. The Korean juggernaut now ranks second in Australia for total hybrid sales, amassing 28,819 hybrids registered in 2025.While this still trails Toyota’s total of 116,635 hybrid units by a significant margin, it’s a reasonably rapid rise for Hyundai, which has managed to double its hybrid tally year-on-year.This is thanks to the roll-out of key hybrid variants for its most popular nameplates, like the Kona small SUV (now 46 per cent hybrid by sales), Tucson mid-sizer (52 per cent hybrid), the Santa Fe, which launched as a hybrid (hence its whopping 82 per cent hybrid sales mix), and the recently-launched Palisade hybrid, which made up 32 per cent of the large SUV’s sales (this figure combines the previous model as well).Hyundai is perhaps a victim of its own mainstream success in that its total for 2025 was still only 37 per cent hybrid, 60 per cent combustion, and just two per cent electric. The brand therefore still managed to attract a penalty under Australia’s tough New Vehicle Efficiency Standard (NVES), despite its hybrid growth.Hyundai’s hybrid strategy has managed to outfox its traditional Japanese rivals Honda and Nissan thanks to the widespread availability and affordability of its hybrid options.The Kona, for example, is available as a hybrid in base form, priced at $36,950 before on-road costs, while the most affordable Nissan Qashqai e-Power ST-L is priced at $45,640 (before on-roads), and the cheapest Honda ZR-V hybrid is priced at $54,900 (drive-away).The same can be said across the range, with the Santa Fe a plugless hybrid success when measured against its Kia Sorento sibling, which was previously only available as a hybrid in top-spec GT-Line form. Kia has now expanded its hybrid offering to include the base S at $59,630 before on-roads. In comparison, the base Santa Fe Hybrid can be had from $57,650.However, there are storm cells on the horizon for Hyundai. Not only does its two per cent EV volume mean the more affordable Chinese-built Elexio mid-size SUV must help out on the sales front in 2026, but the next brand down for hybrid sales, BYD, has rapidly caught up despite fielding only two hybrid (albeit, plug-in hybrid) offerings.The Shark 6 ute is undeniably one of the biggest success stories of 2025, shifting 18,073 units, but the mid-sized Sealion 6 is also a force to be reckoned with, achieving 9055 registrations in the same period.In total, these two plug-ins bring BYD’s tally to 27,128 units, just shy of Hyundai’s total for the year, and by far leading the charts for plug-in hybrids specifically.In addition, the market-leading Toyota will put pressure on Hyundai’s line-up with the introduction of its next-generation RAV4 and its plug-in hybrid variants imminently. Toyota sold 51,869 units of just the RAV4 hybrid in 2025.The Japanese giant has also transitioned most of its passenger car and non 4x4 line-up to hybrid only, with a strong proportion of Corolla Cross, Corolla, and Camry making up its yearly total.Meanwhile Kia, whose hybrid total for 2025 came to 9401 units, is doubling down by not only adding additional hybrid variants of the Sorento, but it will soon launch a more heavily hybridised next-generation Seltos.Kia’s key advantage over its sibling is its relative dominance in the EV space, with its line-up of the EV3, EV5, EV6, EV9 and outgoing Niro accounting for 8131 units in 2025, eclipsing its hybrid total, accounting for 10 per cent of its total sales, and putting it firmly in the positive column for NVES credits which will pay dividends in the coming years.

Chery’s QQ3 budget hatch EV has been given a sharp price overseas ahead of its potential Australian launch as another budget EV hatchback battler.The Toyota Corolla-sized QQ3 is priced from 68,920 yuan in China, which converts to around A$14,000. While cars imported from China carry a significant price increase, it would still fall around the $20,000 mark in Australia when the usual additional costs added. This is similar pricing to the BYD Atto 1 in Australia, which has a starting price of $23,990, before on-road costs. However, it is more likely Australia would get the pricier long range version of the car, which has 420km of range as opposed to 310km, according to more lenient CLTC.This would give it a closer range to its rivals, which have around 350-400km real-world capacity. This variant of the car would more likely sit closer to the $30K bracket, in a similar price region to the GWM Ora and MG4. It could also line-up as a competitor to the incoming GAC Aion UT in an emerging Chinese electric hatchback battleground, which will start from $31,990 (before on-roads).The QQ3 would probably need a more powerful electric motor set-up than the 58kW and 90kW currently on offer in China if it launches in Australia. Its current set-up is underpowered compared to many of its rivals, such as the Aion UT, GWM Ora and MG4, which all have at least 125kW of power as standard. When CarsGuide contacted Chery Australia about the car late last month, the brand said it could not confirm whether the QQ3 is destined to launch Down Under. However, local Chief Operating officer Lucas Harris has previously said the brand is eager to bring an electric hatchback to Australia, making special mention of the QQ lineup, so it may not be too far away.Chery is continuing to grow its presence in Australia, and finished in the top 10 best-selling brands for February 2026.Chery’s only all-electric offering in Australia currently is the E5 compact SUV.

Pricing for the GAC Aion UT electric hatch has been revealed, exposing a new entrant to the budget EV segment.The Toyota Corolla-sized electric hatchback will launch in the second quarter of 2026 starting from $31,990, before on-road costs, making it one of the cheapest new EVs on the market.It is scheduled for a launch in the second quarter of 2026, but GAC Australia has been contacted for comment to get a firm date on the commencement of deliveries.It is slightly more expensive than the base BYD Dolphin, but entry variants of the Dolphin have a 70kW/180Nm motor, with a driving range of 340km.Given the Aion UT scores a 150kW/210Nm motor and 430km of driving range from its 60kWh battery, a more fair comparison is to the range-topping Dolphin Premium.This version of the Dolphin has a similar power output and driving range to the base Aion UT, with GAC’s car $5000 cheaper.The GWM Ora will be another of the Aion UT's rivals, which wears a starting price of $33,990, drive-away.GAC has brought across a higher trim level for the Aion UT, which starts from $35,990, before on-roads. Its key details appear identical, with the major upgrades expected to be increased specifications, including items like a panoramic sunroof.2026 GAC Aion UT pricing AustraliaAll variants of the Aion UT are front-wheel drive.GAC sells an even more affordable base variant of the Aion UT in its Chinese home market, with a 100kW motor and a 34.8kWh battery. At this stage, it appears the brand will not bring that car across to Australia.The Aion UT is the latest GAC model to come to Australia as part of the brand’s ambitions to launch 10 new models in the next five years.GAC currently offers three other models Down Under, which are its Emzoom combustion hatchback, Aion V mid-size fully-electric SUV and the M8 plug-in hybrid people mover.

The new Audi RS3 Competition Limited is one of the hottest hatchbacks of all time and it's just been locked in for a 2027 launch in Australia.Sadly, the fire-breathing RS3 is also primed to be one of the most expensive hot hatches ever, as Audi plans to make just 750 cars globally, with only a small batch of 18 Sportback hatches and eight sedans expected to land Down Under.All RS3 Competitions will bag a trick coilover suspension, extra air bending aids and get the option of a special Malachite Green paint that was originally offered on the legendary short-wheelbase Audi Sport quattro (1984-1985).Supposedly built to celebrate 50 years of road and rally Audis powered by five-cylinder engines, the real reason the new RS3 Competition has been rolled out is to farewell the turbocharged 2.5-litre five-cylinder that will be killed off, along with the current RS3 itself, because they do not meet upcoming Euro 7 emissions.Helping the RS3 special stand out from lesser models, the Competition gains a pair of new canards at each corner of the front bumper that is combined with a new split front lip that is finished in a fetching matt carbon.The same lightweight composite is used for the mirror caps, side skirts and rear spoiler, plus more carbon dressing around the large rear diffuser.All the aero tweaks are said to work following more wind tunnel testing with lift reduced over the front axle.Further goodies include 19-inch ten-spoke gold matt rims and, for the real engineering geeks out there, a set of darkened matrix LED headlamps that have a welcome or farewell illumination sequence that matches the 1-2-4-5-3 five-cylinder firing order.Just three hues are available – the popular Daytona Grey already chosen by many RS3 buyers, plus a new Glacier White matt and the aforementioned exclusive Malachite Green finish.Inside, the swansong for the RS3 gains a cabin that embraces black, gold and ginger white colours. The RS bucket seats gain black bolsters and yellowy-gold inserts and ginger white belts. It all sounds awful, but it works.RS3 Competition Limited graphics for the puddle lamps and a serial number mounted neatly on the front of the gear shifter complete the upgrades.One final Easter egg for the run-out RS3 is the digital instrument cluster that bags exclusive white instrument dials that pay tribute to the original 1994 RS2, that also featured a powerful five-cylinder turbo, and was the world's fastest wagon when it launched.Under the bonnet, pesky emissions regs mean that the turbo-five-cylinder produces no more power, carrying over the same 294kW and 500Nm of torque as before – although few would gripe with a blistering 0-100km/h sprint of just 3.8 second dash and claimed 290km/h top speed.The big news is, for the first time, the RS3 gains a new coilover suspension that has been developed exclusively by Audi Sport for Audi's hyper hatch.Featuring twin-tube dampers, with remote reservoir up front, engineers have also fitted a stiffer rear sway bar to curb body roll.Boasting extensive tuning, the three-way adjustable dampers and further adjustment for the rebound and compression are unique to the hot hatch segment and more akin to expensive track-focused supercars.The result is a car that can be tailored to your individual driving style or track you're about to attack. Alternatively, Audi said you can also tweak the RS3 for maximum comfort, while lowering its ride by up to 10mm compared to the standard car.The catch? Like the RS5 and RS4 Competition special editions adjusting the suspension needs manual tools and requires wheel-off fettling if you're raising or lowering the ride height.Helping offset an inevitable towering price tag, the RS3 Competition Limited edition comes standard with sticky Pirelli PZero Trofeo R tyres, the RS sports exhaust, a set of lighter carbon ceramic brakes that, alone, cost $10,800 on the standard car.Factor in its trick suspension, high level of standard kit and relative rarity and, in Europe, it is no surprise that Audi charges a huge premium for its last-ever five-cylinder RS model.In Germany, the RS3 Competition Limited costs a whopping 30 per cent more than the high-grade version it's based on.With that in mind, when pricing is announced the Audi RS3 could cost more than $140,000, surpassing the 2019 Renault Megane RS Trophy-R ($108,000) and the more current $111,000 battery-powered Hyundai Ioniq 5 N as one of the most expensive hot hatches ever to be sold in Australia.

Late last year marked two significant milestones in the history of Mitsubishi Motors Australia Limited (MMAL).Firstly, it celebrated 45years as the entity that took over the failing Chrysler Australia Limited, including all the manufacturing facilities, in October, 1980,And secondly, with the latest ASX from France arriving as the belated replacement for the 15-year-old previous version that new Australian Design Rules forced off the market by the end of 2024, it signalled the end of the pure Mitsubishi passenger car in Australia.In both cases, a car supplied by somebody else saved the day. By the late 1970s, the Sigma by Mitsubishi kept Chrysler afloat after the latter’s Valiant large car’s sales plummeted, while nowadays MMAL’s best-seller is derived from the Nissan X-Trail platform (and petrol powertrain).From here on in, every model bar the Triton ute and its coming Pajero Sport-replacing SUV off-shoot is based on cars from another manufacturer that remain rivals in the marketplace.It’s worth noting of course that Nissan in Australia and New Zealand is using a lightly-modified Triton as the Navara replacement from this month, so the model sharing does go both ways.But, is this development such a bad thing?How many of the now-discontinued Mitsubishi-only models were worthy of a brand behind bona fide classics like the Lancer GSR Turbo, Magna family car, Starion sports coupe and full-sized Pajero 4WD?These were all ambitious, innovative, highly-engineered and beloved icons that helped change the face of motoring. In contrast, some of the diamond brand’s latter offerings – hello LA Mirage – merely served as the face of mediocrity.Let’s list each of the new-age Mitsubishis, sold here as well as globally, to see whether the switch to out-sourcing has resulted in better or worse passenger cars for consumers as a result.The 2026 ASX is the first Mitsubishi rebadge job sold in Australia, being a lightly-facelifted version of the pre-facelift second-generation Renault Captur (that is, by the way, currently off-sale here and there’s no sign of the MY25 Series II version of the French car).But the Euro newcomer has very, very big shoes to fill, given that the previous ASX became a huge hit (after a slow start back in 2010) in the emerging small SUV segment that it ultimately helped establish.Don’t get us wrong. In its early days, the ASX was a capable yet easy to handle urban crossover with efficient powertrains and a sufficiently spacious interior that ably served as a second family car.But successive facelifts and obvious cost-cutting measures diluted an ageing architecture derived from the 2007 Lancer, meaning it ended up as a cheap, dull and dated proposition by its 10 birthday. Only low prices and a long warranty helped prop up the old timer.In contrast, the Captur-derived version possesses the verve, spark and flair of the Clio supermini that sired it, making it one of today’s better small SUVs.That the French ASX comes with the peace-of-mind of a conditional 10-year warranty means this a smart ticket to sophisticated European SUV ownership, and without the high maintenance costs to boot. An absolutely terrific buy!Since 2022, the current Outlander mid-sized SUV has shared its CMF-CD architecture and PR25DD petrol engine with today’s fine Nissan T33 X-Trail.But this is not more-widely known or acknowledged. At least Mitsubishi in Japan completely redesigned the body and cabin, meaning that you would never know the connection – even from behind the wheel, since the fourth generation to wear the badge feels and behaves differently.Plus, the massive interior’s family-friendly practicality and optional (and pioneering) plug-in hybrid electric vehicle (PHEV) powertrain further add some of that old-time Mitsubishi innovation.Sure, the petrol models are in no way sporty or sophisticated to drive, but at least this Outlander delivers exactly what the badges on its big posterior promise.And the latest version is a whole lot better to drive and sit inside than the dreary and unrefined previous one. We call this another win for buyers.Still listed on Mitsubishi’s website today, despite being officially discontinued at the end of 2024, the old Eclipse Cross was meant to replace the previous ASX back in about 2017, before the latter’s unforeseen mid-life sales rally forced the struggling brand to keep it in production.This also explains why the cash-strapped company offered two different yet near-identically-sized small SUVs, even down to sharing – along with the previous Outlander – an identical 2670mm wheelbase and ageing 2007 Lancer-based platform.At least Mitsubishi bothered to introduce a new powertrain in the Eclipse Cross – a smooth yet gutsy 1.5-litre four-cylinder turbo petrol engine, bypassing the tired old 2.0-litre and 2.4-litre “World Engine” units co-developed with Chrysler and Hyundai during the mid-2000s.Still, with so much SUV overlap and awkward styling, the sales of the old Eclipse Cross never lived up to expectations.But the nameplate, which has roots to the US-market Eclipse sports coupe of the late ‘80s, lives on in Europe, adorning the rear of a re-badged Renault Megane E-Tech electric vehicle.Given that is widely regarded as one of the world’s better EVs, this a loss for local Mitsubishi fans since Australia is not getting it any time soon, but a big win for European Eclipse Cross buyers.For older Australians, the Colt name conjures up memories of a Toyota Corolla-rivalling 1980s hatchback with neat styling and a bizarre eight-speed manual Super Shift gearbox. Yep, look it up, kids.That had been badged as the Mirage in Japan since 1978, and went on to evolve into six generations of Lancer small cars from 1983, with Australia finally granted the Mirage for the CE series from 1996-2004. This went on to become of the most acclaimed Mitsubishis ever sold here.Exhuming the Colt badge, its replacement was a boxier, taller supermini in the vein of the Mercedes A-Class, with excellent packaging and sophisticated engineering.So, you can imagine the indignation when the Mirage name returned from 2012 on a cheap city car that was designed for low-cost accessibility and lightest-possible weight. Commendable in theory, in execution this was as loud and unrefined as its predecessor was calm and refined. Regularly starring in worst-car listings, its only legacy is proving that a low price does not equal high value.The 2026 Colt, on the other hand, is derived from the Renault Clio, which remains one of the sweetest European superminis the world has ever known. We’d love to see it in Australia with the backing of MMAL.Derived from an extended version of the Renault Captur known as the Symbioz, the 2026 Grandis is a small-ish medium-sized SUV in the mould of the Kia Seltos, complete with hybrid tech.That name though. Grandis will forever be associated with Mitsubishi’s take on the Toyota Tarago-dominated people-mover scene of some 20 years ago in Australia.While there is a gaping hole in MMAL’s local SUV line-up between ASX and Outlander, the latest Grandis is not quite the right fit, being too small to lure buyers away from the Toyota RAV4 heartland.A larger, Nissan Qashqai-derived crossover may be on the cards sometime in the future. Renault already sells a version of that in Europe as the Austral – a model ironically not slated for Australia.