Kia Picanto News

$19,990 drive-away is back! The sub-$20,000 barrier has been breached by a popular new model in Australia, bucking a long-term trend of continuous price hikes.More importantly, and in a first since the Suzuki Swift jumped well beyond $21,000 at the beginning of this decade, the car in question is not based on an older or outmoded design nearing the end of its lifecycle, but something released relatively recently as an all-new proposition.That model, inevitably, is the latest iteration of the second-generation MG3, which has already seen a couple of price cuts since the entry-level Vibe CVT automatic grade arrived in Australia during the second half of last year.Initially set at $21,990 drive-away, it dropped by $1000 last month, but is now retailing at $19,990 drive-away until the end of March.However, this latest price is conditional, since it comes with the proviso that is highly unusual at a national retail level - that a member of the buyer’s family must be, or have been, an owner of an MG vehicle.Snappily branded as the “MG Family $1,000 Off” campaign, an MG dealer told CarsGuide that it “includes existing and previous owners and their immediate families, taking in spouses, children (including step/adopted ones) and parents.”Whether previous family ownership extends to the pre-Chinese ownership era of MG Rover models from before 2005, like the ZT, ZS and ZR, as well as the TF and MGF roadsters of the ‘90s, could not be confirmed.In some cases, proof may also be required before the $19,990 drive-away price can be applied at the point of sale – otherwise the Vibe CVT grade returns to the standard $20,990 drive-away.Furthermore, the sub-$20K pricing applies only to new (so not demonstrator) MY25.5 MG3s (so already built and presumably landed in Australia), and in white or black and with a black interior, and while stocks last. They must be sold and delivered to the customer by March 31, 2026, and excludes fleet, government and rental buyers.The real significance of this is the fact that, unlike the previous first-generation MG3 that first entered production all the way back in 2011, the newer (ZP22) version only dates back to 2024.This means it has significantly more safety features, including autonomous emergency braking (AEB) and some advanced driver-assist system (ADAS) technologies.As we said earlier, this hasn’t been the case since the contemporary Swift jumped in price during 2021.And while the MG3 currently has a four-star crash-test rating with ANCAP, its nearest competitor on price, the one-segment-size-down Kia Picanto, remains untested.Note, too, that, even at $20,990 drive-away, the MG3 Vibe CVT is by some margin currently the cheapest new vehicle in Australia, undercutting the base Picanto Sport manual at $22,140 drive-away by over $1100, and $2250 for the auto version that is the more-appropriate point of comparison.Well specified, the Vibe CVT is powered by an 81kW/142Nm 1.5-litre four-cylinder petrol engine, driving the front wheels via a CVT continuously variable transmission.Standard features include 15-inch steel wheels, cloth upholstery, a reversing camera, a 10.25-inch touchscreen display, Apple CarPlay/Android Auto connectivity, adaptive cruise control, AEB, blind spot monitoring, lane departure warning/assist, rear cross-traffic alert, speed sign recognition and a seven-year/unlimited kilometre warranty (like Kia’s), but increased to a 10-year/250,000km conditional guarantee of serviced at an MG dealer.

These are the most affordable new hatchbacks in Australia.

Only a few years ago a budget-focused new car story like this would have well and truly dipped under the magical $20,000 threshold.But, the sad news is there’s just a single new car option left standing in the Aussie market wearing a five figure price tag that starts with a one.And that’s the entry-grade Kia Picanto Sport with a five-speed manual gearbox at $19,190, before on-road costs. Tick the box for the four-speed automatic transmission and all of a sudden you’re at $20,790, BOC.So, we’ve raised the new car budget bar to $25,000 and looked at the five most popular models with an entry-price under $25K from 2025 full-year sales.1) Chery Tiggo 4 Pro - From $23,990, before on-road costsTalk about an impressive entrance. Chery lobbed a hand grenade into the budget end of the small SUV segment in late 2024, with the Tiggo 4 Pro’s first full year sales exceeding 20,000 units in 2025.Two versions of the compact five-seater are offered locally, the Urban and Ultimate, each available in pure-combustion and petrol-electric hybrid form.2) MG MG3 - From $21,990, drive-awayWith competition from new challenger brands intensifying and the MG model line-up growing, the MG3 dipped in terms of year-on-year sales but still did enough to grab second spot under $25K with more than 8000 examples finding a new home.Three grades are offered here - Vibe, Excite & Essence - pure-petrol in all three with the option of hybrid in the upper two.  3) Hyundai Venue - From 23,000, before on-road costsNow a veteran of the ‘light’ SUV category the city-sized Venue remains a strong seller in Hyundai’s small car portfolio.In fact, sales were up a solid 14.1 per cent in 2025 to 7927. The range starts with the entry-grade at $23K, before on-road costs, with the Active and Elite above it. 4) Kia Picanto - From $19,190, before on-road costsA popular choice among city dwellers, the diminutive Picanto also ticked up in total year-on-year sales for 2025 to 7166.Sadly for micro car Verstappen wannabes the 1.0L turbo GT is a thing of the past, but the top-tier GT-Line Picanto brings some of its racy personality to the party. 5) Suzuki Swift Hybrid - From 24,490, drive-awayThe fourth-generation Swift has taken mild-hybrid form with its 1.2-litre three-cylinder engine featuring an enhanced starter/generator/electric motor picking up some of the slack in terms of powering the stop-start system and adding 60Nm of torque.Sales were down in 2025 to 3446, but there were still enough buyers to land the latest version of the city car icon in fifth spot.   Australian Top 5 sellers under $25,000:  

Sales of light passenger cars in Australia have slowly been dipping further and further over the years but an unlikely new entrant may turn this around.Last year China’s BYD announced the pricing for its new entry-level Atto 1 electric hatchback. With a mind-blowing starting price of $23,990 before on-roads, it’s the cheapest new electric vehicle (EV) in Australia by a strong margin.The BYD Atto 1, despite being an EV, undercuts many similarly sized petrol hatchbacks in terms of entry asking price. Examples include the Mazda 2, MG3, Suzuki Swift and Toyota Yaris.One of the few cars that undercuts the Atto 1’s competitive starting price is the Kia Picanto, which is still Australia’s cheapest new car. It starts from $19,190 before on-road costs.During 2025 a total of 7166 examples of the Picanto were sold, which is up 23.1 per cent year-on-year.Despite being the cheapest new vehicle in Australia, it’s not the best-selling light passenger car. This crown goes to the MG3, which currently starts from $21,888 drive-away. A total of 8350 examples were sold last year, though this is technically down 33.5 per cent year-on-year.There are clearly still many Australians looking at the budget end of the new car market to make a purchase, especially as cost of living crunches.Many carmakers are now finding it hard to sell such a car profitably while still packaging all the required safety equipment and meeting tightening emission standards.This is where EVs like the BYD Atto 1 could thrive as they don’t emit any CO2 tailpipe emissions.In terms of other small-to-light EV hatchbacks that are due to launch locally over the next 12 months or so, MG has confirmed it’s introducing its new, city-focused MG4 Urban, plus Leapmotor is launching the B05 electric hatchback in the second half of 2026.Many Australians now prefer SUVs over small hatchbacks and sedans.SUV sales in Australia have been going from strength to strength for years now and there are plenty of budget offerings that in some cases are cheaper than hatchbacks and offer more space.Examples include the Chery Tiggo 4, GWM Haval Jolion and Mahindra XUV3XO which all start at $23,990 drive-away.Around the same time BYD announced the Atto 1 electric hatchback for Australia, it also confirmed it’s introducing the Atto 2 small electric SUV locally.It’s priced from $31,990 before on-road costs, which makes it Australia’s cheapest electric SUV though it’s still $8000 more than the overall cheapest SUV.There are plenty of other budget-oriented electric SUVs available including the Hyundai Inster which currently starts at $35,990 drive-away thanks to an offer, as well as the Chery E5 and Leapmotor B10 which both currently start at $38,990 drive-away.

Australia’s cheapest car just got more expensive.

Kia has reiterated its focus on affordability in Australia, with the imminent K4 five-door hatchback to slot alongside the K4 sedan released earlier this year to help it fight off cut-price alternatives from China.Sourced from Mexico but designed for global markets including Europe, the Cerato hatch replacement may even start from under $30,000 (all prices are before on-road costs), matching the Hyundai i30 Sedan (from $29,000).But, even if the K4 Hatch goes slightly over that price, it would likely still undercut the best-selling Toyota Corolla Ascent Sport Hybrid (from $32,110), as well as the Mazda 3 Pure (from $31,310) and Hyundai i30 N-Line (from $36,000) hatchback equivalents.With the Picanto city car from $18,690 currently Australia’s cheapest new vehicle, as well as the Stonic S small crossover from $25,660, K4 Sedan from $30,590 and Seltos S from $30,750, the K4 Hatch should substantially boost Kia’s fortunes at the bottom end of the new-car market.Feeding into consumer preference for hatchbacks over sedans in the small car segment, the sharply-styled K4 five-door looks – and is – shorter, yet has a larger (and more practical) cargo area, at 530 litres versus the four-door’s 508L.Plus, as with many other models, the newcomer has undergone an Australian-road tuning program run by engineering specialist, Graeme Gambold, giving it a distinct advantage against many other small-car alternatives.According to Kia Australia product planning manager, Roland Rivero, Kia is committed to providing accessible small cars that Australian buyers want, especially as competitors abandon them for crossovers and SUVs.“Picanto not going anywhere anytime soon, and it remains our entry into the Kia brand. And we're pretty happy with what Picanto has done for us, and that's going to be around for a long, long time yet,” he told CarsGuide.“And as for K4 is not going anywhere either, and K4 is going to have a full life, and we've committed to the Mexican factory to do our respective share. So far so good.”While the sedan version has tripled the preceding Cerato hatch and sedan’s January to July sales this year compared to the same period last year with 3322 registrations, it will be the hatch that presents the most promising volume opportunity in Australia.“Obviously, we can't wait for the hatchback to come along,” Rivero admits. Because that's what the market appetite is for. What was the split that we had with Cerato hatch to sedan? I think it was, like, 65 per cent hatch, versus 35 per cent sedan… (Australia) is a hatch market.”Of course, it isn’t just benevolence driving Kia’s move to offer greater small-car choice, since it seeks to better-offset their smaller carbon footprint against the larger, thirstier and dirtier SUVs (as well as the Tasman ute), reducing the likelihood of coming New Vehicle Efficiency Standard (NVES) penalties.That’s why the K4 Hatch will switch to an Atkinson Cycle 2.0-litre four-cylinder petrol engine – as found in the current Seltos as well as the related i30 Sedan 2.0P – that is more efficient and emits, according to Rivero, some 30 per cent fewer emissions than the regular, 112kW/192Nm version found in the K4 Sedan. The trade-off is a slight loss of power and torque, at 110kW and 180Nm respectively.Given the Hatch is poised to be the K4 volume seller, that should help Kia’s bottom line in more ways than one.

Sorry, Swifties. While we appreciate the cultural phenomenon that is singer/songwriter, artist and philanthropist Taylor Swift, this is not a paean to a great pop star, but, rather, a reference to the year that marked Japan’s stellar ascension as the biggest threat to the established carmakers of that time. Their fear was existential as well as actual.

Kia is frantically working on a pair of small electric vehicles (EVs) that could reshape the bottom end of the new-car market by bringing near-price parity with internal combustion engine alternatives. The big news is that both the EV2 small crossover expected to debut sometime next year and its EV1 city-car sibling due a little later on are under serious consideration for Australia. This is despite being readied for production out of Slovakia, due to EV tax concessions as well as vast economies of scale that should help contain prices if or when they land here.

Kia has announced modest price increases for some of its most popular cars, ranging from $100 to $200 depending on the model.For 2025, the Kia Picanto will remain Australia’s most affordable car, despite a $100 price rise lifting the model’s entry price to $18,390, before on-road costs.With an estimated national drive-away price of $21,340, that still puts the small hatch $2650 clear of Australia’s next cheapest vehicle, the Chery Tiggo 4 Pro, which is a small SUV.A further $100 rise across the range sees the top-spec GT-Line with an automatic transmission now headline the range at $21,790, before on-road costs, or $24,140, drive-away.The price adjustments are slightly more substantial for the Kia Stonic crossover, the brand’s second-most-affordable model in Australia.It now starts at $25,660, before on-road costs, for the entry-level S, $200 more than it did last year. Prices peak at $31,980 for the GT-Line.Kia has enacted the same price changes for the Seltos small SUV, which now starts at $30,050, before on-roads, for the S FWD, rising to $45,470 for the top-spec GT-Line AWD.Finally, the upper-mid-sized Sorento, Kia’s most popular model of the bunch, now starts at $53,500, before on-roads, for the petrol S 2WD. Prices for variants with an internal combustion engine now peak at $68,790 for the diesel GT-Line AWD.The price rise follows a seasonal $150 range-wide price rise for the segment-dominating Kia Carnival people mover in January.No model updates or additional spec inclusions have been made across the Kia range in return.

The car industry is based on constant model renewal. Cycles have been getting shorter and shorter, with the main industry settling on between six and eight years as the norm.