Hatchback News

The small and light passenger car segments have been dwindling for years in Australia, but new offerings are helping to revive the affordable new car.These cars are the BYD Atto 1, MG3 and MG4 Urban. They’re all from Chinese carmakers and offer electrified power options.In June BYD sold a total of 871 examples of the Atto 1. It’s only been on sale for a few months and it’s the most affordable electric vehicle (EV) in Australia with a starting price of $23,990 before on-road costs.It was only pipped at the post in terms of monthly sales by the MG3 with a total of 898 examples sold. This is down 1.8 per cent compared to June 2025.The MG3 is now one of the only cars that's available for less than $20,000. It’s offered with both petrol and hybrid power.The Kia Picanto is the only other new car that’s available for less than $20,000 and it’s even smaller than the MG3. The South Korean carmaker sold 626 examples during June, which is down 13.3 per cent over the same month last year.MG also had some sales success with its new MG4 Urban small electric hatchback in June with a total of 1015 examples sold during the month.This almost outsold the venerable Toyota Corolla which shifted 1037 units. This is down 28.6 per cent compared to June 2025.Looking at the year-to-date (YTD) sales figures, BYD has sold a total of 3254 examples of the Atto 1 despite only being on sale for a few months.The Chinese carmaker has been going from strength to strength in terms of sales in Australia. It’s now the second best-selling brand in Australia behind only Toyota, which has held the crown for the last 20 consecutive years.MG sold a total of 3917 examples of the MG3 to the end of June which was down 25.9 per cent year-on-year. For context, MG sold a total of 8984 examples of the related ZS small SUV over the same period, an 11.7 per cent drop.MG sold a total of 1424 examples of the MG4 Urban up to the end of June. It’s only been on sale for a few months now and it appears full supply is coming on tap and backorders are being fulfilled.Forecasting for the rest of the 2026, it will be interesting to see how much of this renewed interest in certain small cars carries on as the segments as a whole continue to decline.Light and small SUV sales continue to boom and don’t look like they’re slowing down anytime soon. The overall sales volume for the segments are much higher than the respective passenger car segments too.Chery sold a total of 13,638 examples of the Tiggo 4 small SUV until the end of June, which is up 70.6 per cent year-on-year. It also makes it the fifth best-selling car in Australia overall.The best-selling passenger car currently is the Toyota Corolla in 22nd place for YTD sales. Every vehicle with a higher sales volume is either an SUV or ute.

The Honda Civic Type R is back in stock, but it won't stick around for long.This new batch of the Japanese sports car will be priced from $85,000 drive-away, which is $500 cheaper than the previous allocation. There will be less than 100 (expected to be 98) units available, with deliveries expected in December.The Civic Type R is one of the most sought after sports cars on the market.It tackles hot hatch rivals such as the Volkswagen Golf R ($71,990, before on-road costs).It has not been available for mass order in Australia since August 2025, when it sold out in less than an hour.This latest batch will not be fitted with the carbon fibre spoiler as standard, with it instead available as a pricey $4100 option, which effectively makes it more expensive than the previous version once the spoiler is accounted for.The Civic Type R has been subject to several price increases during its time in Australia.It is now in excess of $12,000 more expensive compared to when it first went on sale.It will continue to be powered by a 2.0-litre turbo-petrol four-cylinder engine, producing 235kW and 420Nm, paired with a six-speed manual transmission.  The brand was forced to axe the Civic Type R in Europe at the start of this year, due to tightening emissions standards. Honda is also facing emissions pressures Down Under, so it could have to make a similar move here at some point.The brand recently announced it will be investing heavily into hybrid models over the next few years.Honda has already added hybrid power to much of its range in Australia, including on its CR-V, HR-V and ZR-V SUVs.There are no plans for the Civic Type R to be given hybrid power at this stage.Bookings for the Civic Type R will open on Monday 6th of July at 12:00 pm at Honda dealers, and 3:00 pm online.Buyers will be required to place a $5000 to secure their order. 

Toyota has too many models? The company’s new global boss seems to think so, and he is sharpening his axe in his hunt to save money. Why is this happening? Which models doesn’t Toyota need?Toyota is the world’s biggest car manufacturer and has been for the past six years running. In 2025 Toyota sold 11.2 million vehicles across its three brands - Toyota, Lexus and Daihatsu.That global dominance is replicated in Australia where Toyota has been the biggest selling car brand for 23 consecutive years.So, you’d think it was doing everything right. And why on Earth would you change anything?Toyota’s Kenta Kon became the new global CEO of the company on June 17, and has hit the ground running as he looks for what could be done better, while he hasn’t mentioned any models by name he’s made it clear there will be cuts.In an interview with Automotive News, Kon said he was touring facilities looking for inefficiencies. It’s enough to send a chill down even the most hard working employee’s spine.“We’ve become increasingly able to identify things that don’t seem quite right, areas where operations have become somewhat inefficient, or where the amount of work that doesn’t directly add value has increased,” Kon told Automotive News.“We’re now at the stage where we can really start addressing them – making corrections and implementing improvements.“If you go to a development division, you see issues such as an increasing number of different specifications and variants being created, which in turn is driving up costs.”Carmakers, as many companies do, often go through a streamlining process where they prune back on activities deemed superfluous in a bid to save money.This cutting back is already happening. The fully electric Lexus LF ZC was axed before it even went into production, just before Kon succeeded Koji Sato as President and CEO. Before the promotion Kon was Toyota’s Chief Financial Officer.Mr Sato is a “self confessed” car guy - a mechanical engineer by trade and a performance car enthusiast. Mr Kon calls himself a “numbers guy”.According to Toyota’s Financial Year 2026 summary, the company sold 2.5 per cent more cars and sales revenue was up by 5.5 per cent, but the operating profit fell by 7.3 per cent.Add to this the billions lost from the bottom line caused by tariffs imposed by the United States, a massive loss in sales in China (a 31 per cent drop in May this year alone), a conflict in the Middle East putting pressure on fuel prices and the sudden huge popularity in Chinese electric vehicles, and even the biggest car girl or guy can see the need to cut back on spending.The axing of the LF ZC is interesting and it happened just as Kon was moving into his new office. This was to be an electric successor to the IS sedan, but perhaps being a sedan was the reason it was axed. SUVs being where the money is these days and all that.In a time when sales are being stolen from right under mainstream brand’s noses by affordable, high-tech and good looking vehicles made by Chinese manufacturers, surely EVs aren’t the models Toyota should be axing?But then Toyota’s EVs haven’t really taken the world by storm. One of the brand’s worst selling cars is the C-HR SUV and the electric version, which recently arrived has done nothing to help sales anywhere globally for Toyota.Toyota’s other electric SUVs, such as the bZ4X, haven’t been major hits either. Toyota’s focus doesn’t appear to be EVs for now. Instead, hybrids are bringing in the money for Toyota.The axing of the LF ZC was also only just one model, but it's a good indication of how Toyota is now in a phase of conservative growth and not willing to take risks.That's not to say the brand won’t make EVs, of course it will, but rather than sedans like the LF ZC they’ll be electric SUVs.Currently Toyota has 23 models in its Australian range. The worst performers are the Yaris, C-HR and GR86, all with less than 1000 sales so far this year.Which models will Toyota axe next? Most likely the C-HR first. This SUV, while great to drive, isn’t selling well here and around the world - even the fully electric version.What about the bZ4X? That’s actually selling well in Australia and globally even if it had a bumpy start with recalls and a battery that didn’t offer enough driving range in the first iteration. Toyota has sold 1526 of them this year. That’s more than the 1340 combined sales of closely priced Volkswagen ID. 4 and its ID. 5 coupe twins.But when you compare that to its Zeekr 7X rival, with 3664 sales for the same period, then you begin to see that EVs are currently really just a side hustle for mainstream brands that make nearly all their income from traditional models.Does it annoy Toyota that it’s not the go-to for EVs when it has been for ICE cars for decades? I’d say it does, a lot. Even if Toyota would tell you it doesn’t and say that it's all about having models for every body - the multipathway powertrain approach is the marketing phrase it uses.Toyota may even feel that it exerts such a colossal influence over people’s purchasing habits that customers will continue to buy what the brand’s range offers. The company may just think that “until we make and sell it, people won’t buy it”.Yes, it’ll lose a relatively tiny amount of sales to BYD, Zeekr and other Chinese rivals but it’ll stay its course and bring in electric versions of its successful models.In the meantime, for Toyota you can probably forget design studies like the LF ZC or wild reborn models such as the Celica or MR2. The Toyota 86 as we know it is also on borrowed time.Yep, if you thought Toyota was boring now… you ain’t seen nothing yet.

China’s latest budget electric car is about to hit Aussie showrooms.The Leapmotor B05 is priced from $35,990 (drive-away), placing it in close proximity to the GWM Ora 5 (from $33,990, drive-away) and MG4 (from $39,990, drive-away).There is also a long-range variant of the B05 available, starting from $39,990 (drive-away), making it $4000 more than the base car.All variants have a single electric motor, producing 160kW and 240Nm, with a 0-100km/h time of less than seven seconds.The long-range B05 comes with a 67kWh battery that provides a driving range of 482km, while a 56kWh unit in the base car offers 401km, both according to WLTP standards. These strong range figures for the hatchback are in part due to the car only being offered in a rear-wheel drive set-up. The car has DC charging capabilities at up to 174kW, meaning it can charge from 30-80 per cent in under 20 minutes on both variants. On the inside, there is a 14.6-inch central touchscreen display and an 8.8-inch digital driver display.It is also equipped with a wireless phone charger as standard, accompanied by wireless Apple CarPlay and Android Auto. The long-range grade adds a fixed panoramic glass roof with an electric sunshade, synthetic leather seats and a premium 12-speaker sound system.It also introduces electrically adjustable seats, with the front ones heated, as well as a heated steering wheel.Leapmotor said the B05 will arrive in Australia in late August 2026.It will join Leapmotor’s growing model line-up in Australia which includes electric and range-extender variants of its B10 and C10 SUVs. The B10 and C10 have been slow sellers in Australia as they target cheaper and more popular petrol-powered alternatives and face tough competition on the price front from Geely and BYD.Leapmotor will continue to bring across more models to Australia over the next 18 months, including the B03X compact SUV and the D19 large SUV.There is also a hot hatch variant of the B05 called the 'Ultra' being developed in China that could be on its way to Australia to top-out the range in the coming years as a new rival to the MG4 XPower.

Fifty years ago, on July 1, 1976, the worst new Holden up to that point was released, the HX series. And everything changed.Not coincidentally, it was also the date that all new internal combustion engine vehicles except those under 850cc in capacity or with liquid petroleum gas had to comply with stricter emissions standards known as Australian Design Rule 27A (ADR27A).This law proved to be a nightmare for parent company General Motors-Holden’s (GMH) Ltd.With fuel consumption up, power down and prices jumping to cover the extra technology necessary to meet the new regulations over the preceding HJ series, Holden’s engineers struggled to make its 1960s-era engines cope with the required updates in what was the country’s best-selling car line since the early 1950s.Critics and road testers alike savaged the HX as a result, accusing Holden of being cynical and out of touch, though it managed to hang on to the top spot for 1976.“Perhaps we would be better off with dirty engines and improved driveability,” quipped Wheels magazine editor Peter Robinson.Unfortunately for GMH, three unexpected things also happened right around that time that led to fundamental shifts in consumer tastes.Firstly, Japan was ready to launch its next phase of world-beating passenger cars that could easily meet ADR27A, headed by the original Honda Accord that almost single-handedly elevated that country’s entire industry overnight.Others followed in its footsteps, including the Mazda 323 and Datsun Skyline.Yet it was the shock success of the Chrysler Sigma, supplied by Mitsubishi, that became GMH's second big setback, shooting up the charts to a podium finish soon after its 1977 launch, and stayed there for half a decade.The Sigma lured many former and would-be Holden owners away in droves, particularly from the brand's waning Torana and Sunbird models it competed directly against, and even cannibalised Chrysler’s own Valiant in the process. Sigma was an automotive phenomenon that led directly to the iconic Australian-developed Magna later on.And last but not least, arch-rival Ford, which had been nipping at the Holden’s heels with the Falcon since the XB Falcon snatched number one for just one month in late 1973, had pulled out all stops in making the succeeding XC series demonstrably superior. GMH certainly wasn't expecting that.While the change from HJ to HX was little more than a fussier grille, revised instrumentation and several other, mostly minor, alterations, Ford expensively reengineered its engines to make them better than before, not worse. And it also redesigned the Falcon's nose, tail, back doors and dashboard, for a far-fresher look and feel.Plus, the XC launched the Fairmont GXL sports/luxury flagship. In the spirit of the legendary Falcon GTs, contemporary reviewers declared it as one of the greatest Australian-made family cars to date.In stark contrast to the basting the HX endured, XC sales flourished, with the Falcon becoming Australia’s best-selling car in 1977, period – an achievement it managed again from 1981 through to 1989, signalling the start of Ford Australia’s halcyon days.Half a century after the HX’s painful birth, perspective shows us a company grappling to deal fast enough with rapid change – something that Holden would pay the ultimate price for by 2020.Yet, to GMH’s credit, the more-comprehensively changed HZ series that followed in October, 1977, addressed most of the HX’s issues, whilst leap-frogging the Falcon in both sales as well as a driver’s car, thanks to chassis tweaks marketed to great effect using a tagline borrowed from Pontiac in the US called Radial Tuned Suspension.A stunning turnaround, it restored the Holden to the top spot for 1978, in time for the smaller, Opel-based VB Commodore to turn the market on its ear leading into the 1980s.A brief hiccup then largely due to ADR27A, a total of 110,669 HXs were built. And though the series has long lived in the shadow of the massively popular HQ/HJ models before it and the beloved HZ afterwards, 50 years later, its appeal is palpable. Who wouldn't have one?As a colourful piece of Australian motoring history, recognition is deserved. If nothing else, the garish Monaro LE two-door coupe runout edition remains one of the most 1970s things ever to happen in local motoring folklore!And it was the first Holden that actively attempted to minimise its emissions impact. That’s got to be worth celebrating. Happy 50 birthday, Holden HX!

Chinese brand Leapmotor says buttons are on the verge of an in-car comeback as China’s army of automotive manufacturers further tailor their vehicles for international tastes.That’s the word from Frederik Dallmeyer, Lead Exterior Designer at Leapmotor International, who says customer tastes are causing a rethink on featureless cabins in which all functions are controlled through a central screen.Leapmotor has already begun launching work-arounds, in which shortcuts take a driver straight to the most important functions, like changing the wing-mirror position, but says the next generation of vehicles could feature a return to toggles and switches."I can't be concrete about it. (But) if the tastes of the market dictate that buttons are a must-have, then yes, but let’s see,” he says.“My personal preference is that I like to also have quick access to things. So yeah, I think that’s something that will be worked on.”Asked when Leapmotor vehicles could return to easy-access functionality in its cabins, the designer replied: “I think it’s the next generation.”It has long been thought that the Chinese domestic market’s preference for screen-heavy interior would effectively strong-arm the rest of the world into adopting the same cabin layouts, given the size of China’s export market. The country is now the biggest country of origin for vehicles sold in Australia, with as many as one in three vehicles sold here made in China, depending on the month.But Mr Dallmeyer suggested that wasn’t necessarily the case, with the designer not ruling out individual cabin treatments for domestic and global markets, while also suggesting Chinese tastes could be changing.“I think that depends a little bit on how things were to evolve in China because China is always a very quickly evolving market,” he said.“Tastes change, preferences change. Maybe it’s not necessary, like if more physical functions are also appreciated in that market.”

A new affordable and super compact electric car has been named ahead of its official reveal, and this one is from Europe rather than China.Dacia has announced its upcoming fully electric compact car will inherit the ‘Spring’ name from its predecessor, which at some stages was the most affordable brand new electric car sold in Europe.Dubbed the ‘New Spring’, as it will be sold for a period of time alongside the outgoing car, the 2027 car will be a ground-up development based on the upcoming Renault Twingo.Expected to wear Dacia’s current angular styling language as opposed to the revived ‘90s aesthetic of the new Twingo from Renault, the Spring is said to keep the spirit of its predecessor.“New Spring keeps the essentials: a 100 per cent electric powertrain, four real seats, and a proper boot Dacia continues to pursue a clear ambition to pave the way for electric mobility that is accessible to all,” said the brand.The current low-cost car is built in China, but the new car will be built in Slovenia alongside the Twingo as parent company Renault looks to avoid tough new tariff structures imposed on Chinese-built vehicles in the EU.Renault has said it is targeting the equivalent of a sub-$30,000 price for the Twingo, but the Dacia model is expected to cost even less.The outgoing Spring was a success in Europe, selling over 200,000 units according to the brand. As recently as 2024 it was made available in right-hand drive to cater to the UK market.It is powered by either a 52kW/137Nm or 72kW/137Nm motor driving the front wheels, mated to a 24.3kWh battery allowing a 225km range according to the WLTP combined cycle.At just 3701mm long, it is even smaller than the most compact electric car sold in Australia, the BYD Atto 1, which measures 3990mm long. Its boot measures 308 litres, which Dacia says is class-leading.The Atto 1 starts from just $23,990 (before on-roads) in Australia, which makes it the most affordable new electric car on sale in Australia. It is also strictly a four-seat offering, and the entry-level version can travel 220km on a full charge, using a 65kW electric motor.The Duster is the only Dacia model on sale in Australia, and it is re-badged and sold as a Renault. The brand’s Australian operation, has said in the past the door is open to more re-badged Dacia models in the future.Ultra compact cars struggle to be sold in Australia as they often fall afoul of either our tough Australian Design Rules or the requirements for a five-star ANCAP safety rating.Mitsubishi trialled its eK X electric city car in Australia several years ago, but ultimately decided it wouldn’t be viable with the built-in-Japan model attracting higher prices than Chinese rivals, and it would have worn a safety rating of three stars or less.

Hyundai Australia has introduced a final-edition version of the i20 N hot hatch after years on sale locally.The 2026 Hyundai i20 N Shadow Edition is essentially a blacked-out version of this hot hatch that’s equipped with a series of genuine accessories.Only 100 examples of this car will be available and it’ll only be finished in either Atlas White or Phantom Black. Pricing is $41,500 before on-road costs and $42,095 before on-road costs, respectively.This makes it roughly $3000 more expensive than the standard i20 N.For the extra money you get unique 18-inch matte bronze forged alloy wheels, black wheel nuts, lower door decals, an Alcantara steering wheel with Performance Blue top marker and stitching, an Alcantara gear selector, a numbered plaque, as well as tailored rubber floor mats that feature the Pirelli P Zero tread pattern.Power still comes from a 1.6-litre turbocharged four-cylinder petrol engine that produces 150kW and 275Nm. It’s mated to a six-speed manual transmission exclusively.“The i20 N has struck a chord with Australian customers by delivering an engaging and accessible performance car experience that’s equally at home on the road and racetrack,” said Hyundai Motor Company Australia Chief Operating Officer, Gavin Donaldson.“With just 100 examples available, the Shadow Edition provides a fitting farewell - its exclusive monochrome styling celebrates the i20 N’s unique character while giving enthusiasts the opportunity to own a distinctive piece of Hyundai N history.”While production of the current i20 is wrapping up, Hyundai is readying a new-generation version. In fact, imagery of this new model has leaked overseas.At this stage it’s unclear whether Hyundai will eventually offer an N version of this new-generation i20.

MG is continuing its budget EV push with a new hatchback launching in 2027 set to take on the BYD Atto 1. It is sized for the B-segment, meaning it sits on the smaller end of the hatchback scale. Based on this, it is expected to be smaller than the MG4 and MG4 Urban, so it could end up being the cheapest model in MG's line-up. MG Australia has previously said it does not comment on future models or product details, so it is unclear whether it will eventually make its way Down Under. The local branch has been contacted for comment to see if the new hatchback will launch in Australia. There are limited other details available at this stage, but the brand has provided a couple of teaser images of the new hatch. It will have a bubble-like exterior design, including a pixelated front headlight design. There will be a rear roof spoiler and the rear headlight design is split into four quarters. It lines up as a direct threat to the BYD Atto 1 that currently holds the title for the cheapest EV in Australia, starting from $23,990 (before on-road costs). MG’s cheapest EV in Australia is the recently-launched MG4 Urban, with a starting price of $31,990 (drive-away), so this incoming hatch could be the budget rival MG needs. We will get a closer look at the new hatch early next month. MG’s cheap small cars remain the most popular of the brand’s offerings as it holds onto a place in the top 10 best-selling brands Down Under. Its ZS small SUV is the brand’s best-selling model, followed by the MG3 hatch. Together they contribute nearly half of MG’s sales in Australia. 

Australia might be a big country, but we do like our small cars.These little vehicles are generally affordable and typically energy efficient — both the petrol and electric ones. They also fit into tight car spaces and zip through narrow city streets. These pint-sized machines can be fun and easy to drive, which makes them great first cars or even last cars for those who don’t need something giant.So, we have compiled a list of the five smallest cars in Australia.Dimensions: 3860mm long, 1735mm wide, 1520mm tallWho doesn’t like a Suzuki Swift? This Aussie favourite has just scraped into our top five at just under 3.9m long. The Swift is loved for its practicality, with four doors and five seats, and it’s fun-to-drive nature - especially the Sport version. There’s a choice of hybrid and pure petrol powertrains, but no fully electric Swift unfortunately. The Swift scored three stars out of five in its ANCAP safety test in 2024.  Prices start at $24,990 drive-away. Dimensions: 3858mm, 1967 wide, 1460mm tallWhoever said Minis were now so big they’re no longer mini was wrong - also, that was me who said it. The Mini Cooper three-door is the miniest Mini, and the electric version is a tad shorter than the petrol variant. And while it is shortest in height here and only just 3.8m long it’s actually the widest in our top five. The Mini Cooper has four seats, a 210-litre boot and scored the maximum five-star ANCAP rating.Prices start at $53,990 for the electric variant and $41,990 for the petrol version.Dimensions: 3825mm long, 1610 wide, 1575mm tallThe Hyundai Inster is a fully electric little SUV with four doors, four seats and a 351-litre boot.A range of up to 360km makes it very usable for city dwellers, or those who don’t do many miles each week.The Inster has rugged but cute looks, and a starting price of $39,000 makes the Inster a very affordable EV.The Inster scored four out of five stars in ANCAP tests. Dimensions: 3631mm, 1900mm wide, 1529mm tall The Fiat 500e has two doors, five seats and a 185-litre boot. Yep, it’s probably the least practical tiny car on our list but it's also one of the most fun to drive with its electric powertrain.It's a small car with a big price. The 500e starts at $58,900. Yes, that's outrageous, and we wouldn't be surprised if at some point the 500e is withdrawn from Australia due to the low sales. Still that might be a good way to bargain your way into one.It also scored four stars in safety tests.Dimensions: 3595mm long, 1595mm wide, 1485mm tallThe Kia Picanto is our top five tiny cars winner at less than 3.6m long. It’s also the most popular micro car in Australia and it's easy to see why. Its starting price is $19,190, the value and standard features are outstanding and it’s good looking. Four doors, five seats and 255 litres of boot space. It’s smaller than it sounds, seriously. There’s no EV version of the Picanto, and the one sold in Australia has a four cylinder petrol engine. The four-star ANCAP rating from 2017 is now out of date.