Hatchback News

Smart is poised to return to its roots with an ultra-compact city car, according to new spy images.Smart's fifth model since its Mercedes-Benz and Geely re-boot, the #2 has already been teased in Chinese social media as the ForTwo’s successor, but new ‘spy pictures’ shared via the brand’s official channels confirm it will even follow the original Smart car’s aesthetic and proportions.Built on a new platform dubbed ECA (Electric Compact Architecture), and equipped with just two doors, the #2’s design will be be led by the Mercedes-Benz design team. Smart confirmed the car would be built in China and is targeting global export markets.Specifically, the brand teased the #2 at the Munich motor show, with a European release slated for 2027.Due to its ultra-compact dimensions, Chinese media is speculating a battery size of roughly 30kWh, equivalent to other ultra-compact vehicles sold in Australia like the BYD Atto 1 (From $23,990, 30kWh, 220km range) or Hyundai Inster (From $39,000, 42kWh, 327km range).Smart’s reboot looks to continue full steam in Australia, with the brand following up on the #1 crossover and #3 small SUV with the recently-revealed-in-Australia #5 mid-sizer, which is likely to be the first Smart offered in Australia as a plug-in hybrid.It is unclear whether Australia will see the recently-revealed #6 sedan, which looks to be a hybrid-first proposition equipped with a 1.5-litre plug-in hybrid drivetrain.The two-seat #2 which returns the brand to its low-cost and ultra-compact origins may be a perfect fit for markets like China, Japan, Korea and Thailand, but it is unclear whether the brand will take another shot at the poorly-served city car segment in Australia.Generally, cars with ultra-compact dimensions are difficult to comply with Australia’s stringent design laws, and many brands often don’t want to roll the dice with such a car receiving a sub-five-star ANCAP safety rating.However, the segment has again received more interest locally, as brands look to exploit an under-served space that's well suited to electric vehicles. BYD’s Atto 1 recently bucked the trend of associating low safety with ultra-compact vehicles, scoring a maximum five-star ANCAP safety rating.BYD’s affordable offering is yet to put its first runs on the board, but Hyundai’s more expensive Inster has thus far chalked up 426 registrations in Australia. Meanwhile, Smart is not a member of the FCAI and its sales numbers do not appear in the VFACTs industry report.The original Smart ForTwo was sold in Australia between 2004 and 2007 equipped with a 1.0-litre three-cylinder engine. Its line-up expanded over time to include the ForFour hatch and even a roadster model.

Nissan is making no bones about the fact that it needs more models to sell in greater numbers in Australia, with China emerging as a key supplier moving forward. With the current range coming from Thailand (Navara), Japan (X-Trail, Ariya, Patrol), United Kingdom (Qashqai, Juke) and North America (Pathfinder), a lower-cost source is seen as a solution to one of the company’s biggest hurdles.

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BYD says the "seismic shift" occurring in Australia will result in big brand "fallout", as a wave of new Chinese brands combines with tightening emissions to squeeze household name car makers.

Best new cars coming to Australia in 2026

The Toyota GR Corolla is bringing some efficiency and structural updates that are set to sharpen up the Japanese hot hatch.The Kia EV4 sedan will be the first EV4 body style to arrive, with its production in South Korea meaning it's easier to get here first.Closely related to the EV3, the EV4 is longer, wider and taller than a Tesla Model 3.Built in Slovakia and set to arrive later, the Kia EV4 hatch will mirror the sedan in many ways, aside from being shorter.As with the sedan, a a 58kWh Standard Range or 81kWh Long Range pack are confirmed internationally.Want to know what other new models are due in 2026? Check out our rolling coverage by clicking on the links below. Best EVs Australia 2026Best Ute Australia 2026Best 4x4 Australia 2026Best New Cars 2026 AustraliaBest Family Cars Australia 2026Best Hybrid Cars Australia 2026Best SUVs Australia 2026

The electric car onslaught will continue in 2026 with the announcement of more than 20 new models in Australia.