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In 2026, there are a number of intriguing new models designed and engineered expressly for North America that we think would resonate with Australians.While some are certainly flash and expensive, all are exceptional in some special way.We identify our favourites, and reveal why we’re denied them. Let’s go.The latest Toyota HiLux is… better than before.An appreciable improvement over the previous model launched in 2015, it evolves the series in key safety, comfort and multimedia areas.But the HiLux is far from the best, being a rehash of a much-older design compared to the leading Ford Ranger, Isuzu D-Max and Kia Tasman.Which is where the US-market Tacoma steps in… and up.However, though it uses the TNGA-F body-on-frame platform related to the latest LandCruiser 300 Series and Prado 250 SUV ranges, it is currently a left-hand-drive-only (LHD) proposition, made in Mexico chiefly for North America, so out of bounds for us.But – as Toyota Motor Company Australia’s (TMCA) departing sales boss Sean Hanley recently revealed to CarsGuide ­– Tacoma is high on the local wishlist, as part of a broader ute strategy that would also include HiLux.“They could live side by side,” he said. “And I think that's the diversity of the requirement of that particular segment and its customers. (Tacoma) would be a more high-end vehicle.“I think that there's a market for that vehicle in the right configuration alongside HiLux.”This one-two ute approach would please both traditionalists and provide a more-effective, premium-positioned weapon against larger, stronger competition.But, it won’t happen in 2026, as the local team appears to await an evolved Tacoma (or similar) that’s said to be in the pipeline for global markets, with more-suitable engine options for Australians than the existing 2.4-litre turbo and turbo-hybrid petrol-powered choices. And possibly cheaper sourcing than from America.If you’re a Toyota fan and the latest HiLux doesn’t quite do it for you, the right Tacoma cannot come soon enough.Oh, and while you're at it, can TMCA also release the US-market retro-style round-light Prado 250 to Oz, please?Five years after storming North America, the Maverick continues to sell better than ever, with over 155,000 units shifted in the US alone last year.Made in Mexico, the ute that looks like it was designed by Ikea isn’t the first of its type. But where the Ford differs from other car-based monocoque-bodied dual-cab utes is in its perfect proportions: it seems consumers love the compact yet confident pick-up look.Yet that’s not the only reason why we reckon the Maverick would win over Australians. A sub-$40K asking price, for starters, would help, given the cheapest new Ford passenger vehicle, the base Everest, costs nearly $60K. And the petrol-hybrid powertrain would woo more than a few would-be BYD Shark 6 buyers.So, why can’t we buy one here? The official reasons are no right-hand drive (RHD) production and a lack of production capacity keeping up with demand, though the fear of stealing sales from Ranger must surely also factor in. Yep, the fear of cannibalism from within is real at Ford.With timeless styling, a sumptuous cabin for seven, alluring luxury and the option of up to four electric motors, the R1S is an American flagship SUV EV that seamlessly blends performance, opulence, practicality and desirability.And while a massive battery pack ensures outstanding range, the Rivian’s off-road prowess makes this a reinvented Range Rover for today.The bad news is that RHD seems unlikely. While many top-end full-sized SUV EVs miss the mark for consumers, the R1S provides a most-compelling alternative. It even helped achieve a “most loved brand” accolade from Consumer Reports in 2024, highlighting this newcomer’s immense achievement.We’ve already spotted R1S’s related electric ute sibling at Ford’s Australian headquarters, presumably undergoing competition evaluation, suggesting the Ranger may eventually follow suit. But that’s another story.It also speaks volumes about how esteemed this 600km-plus luxury pick-up is. Classy, capable and high quality, it seems to embody the polar opposite of a Tesla Cybertruck. And we’re here for that.But the only RHD Rivian coming will be this year’s smaller, all-new R2 SUV, but that’s only currently confirmed for the UK.You’d think the R1T would be a no-brainer in ute-obsessed Australia. Pity.Unlike every other Charger since 1966, today’s eighth iteration breaks from the traditional American muscle-car formula.Built on an albeit heavily-modified premium platform also underpinning a number of larger Jeep, Alfa Romeo and Maserati models within the Stellantis portfolio, the sleek, evocative body offers three-door and five-door liftback styles, rather than the expected two-door coupe or fastback designs associated with so-called pony cars.With no V8 Hemi in sight, today’s Charger spec consists of twin-motor and triple-motor all-wheel drive EV choices, or a 3.0-litre twin-turbo in-line six-cylinder petrol engine dubbed ‘Six Pack’. Fans of Australia’s legendary Chrysler Valiant Charger R/T E49 of 1971 would know exactly what that entails.But inevitably we miss out again. Yes, Autogroup International does offer a remanufactured RHD version for an undisclosed premium, but we imagine it would be far-more expensive than the $85K-plus Ford Mustang GT.The Lucid Air represents the pinnacle of American luxury sedan development.Exquisitely designed, beautifully packaged, blisteringly fast and incredibly efficient even by EV standards, this ultra-high-tech alternative to a Mercedes-Benz S-Class pushes flagship-sedan boundaries with the no-compromise vision of a company determined to succeed against near-insurmountable odds.More romantically-inclined automotive historians might liken the Air as kin to ambitious but doomed heroes like the 1937 Cord 810, early Lincoln Continentals and even the Tucker 48 Torpedo, but the sheer competence and abilities of the Lucid mean this is a Tesla Model S smasher for the head as well as the heart. Except, not for Australians.

​​Tesla has today announced a name change for its Model 3 and Model Y in Australia, introducing the "Premium" moniker, while also confirming the cheaper stripped-back Standard models offered overseas would not be coming to Australia.

More than fifty years after the model designation was first formally applied to Mercedes-Benz’s top-tier sedan, the German maker has unveiled a substantially upgraded version of its S-Class flagship.Claimed to consist of 50 per cent newly developed components and scheduled to arrive in Australia in the fourth quarter of this year, the update also corresponds with the three-pointed star’s celebration of 140 years since Carl Benz patented his ground-breaking motorwagen in 1886.Mercedes-Benz Australia told CarsGuide the local model line-up is yet to be confirmed, but there are no fewer than seven variants on offer for European markets (S350d, S450, S450d, S450e, S500, S580 & S580e) with standard and long versions available, the latter adding 110mm to the wheelbase and overall length.Engine options range across a 3.0-litre, in-line, six-cylinder, turbo-petrol producing up to 330kW/600Nm, a 3.0L twin-turbo diesel delivering 230kW/650Nm and a 4.0L twin-turbo flat-plane crank V8 pumping out 395kW/750Nm.Revised plug-in hybrid powertrain options combine the six-cylinder petrol engine with a single electric motor for up to 430kW (+55kW) and 750Nm of combined torque. A 22kW battery delivers an electric-only driving range of 93-103km.On the outside, luxury car-spotters should look out for a larger (illuminated) grille with the option of an illuminated star on the bonnet.Digital micro-LED headlights are new, as are tail-lights featuring chrome-framed stars. A fresh 20-inch wheel design incorporates 50 cross-spokes. Striking, or a detailing nightmare?Inside, the Mercedes-Benz ‘MBUX’ multimedia interface consists of a central 14.4-inch screen and a 12.3- inch passenger display combined under a continuous glass surface.Larger 13.1-inch displays are offered in the optional ‘MBUX High-End Rear Seat Entertainment System’. Speaking of entertainment, an optional Burmester ‘High-End 4D-Surround-Sound’ system includes ‘tactile transducers’ in the seats to “vibrate and pulse in time with the music” as well as 39 speakers, four exciters, 1750-watt output and Dolby Atmos.A fourth-gen ‘MB.OS supercomputer’ enables an expanded app portfolio including streaming platforms like Disney+ as well over-the-air updates and AI from ChatGPT4, Microsoft Bing and Google Gemini combined in one system to power up the car’s ‘Hey Mercedes' virtual assistant.Other tech highlights include upgraded park-assist functionality, the option of integrated video conferencing and heated seat belts “with a soothing warmth of up to 44°C”.Air suspension is standard across the line-up with ‘E‑Active’ body control an option.Also available to order is the new S680 Guard 4Matic special-protection vehicle combining an in-house developed ‘Integrated Protection System’ comprising an aluminium outer skin to achieve VR10 20, which Mercedes-Benz said is the highest civilian protection level.Pricing and final specification will be confirmed closer to the car’s local launch but in Germany the entry-level S350d 4Matic starts at €121,356.20 (including 19 per cent VAT) which, on a direct currency exchange translates to just under $206,000. For reference, the current (non-Maybach) Mercedes-Benz S-Class range starts with the S450 4Matic at $244,700, before on-road costs, rising to $335,100, BOC, for the S580L 4Matic.

Tesla’s Cybercab has been spotted testing in the USA as the company forges ahead with its plans to produce a fleet of driverless vehicles rather than expand on its range of popular EVs.The Cybercab was spotted on the streets of Chicago where it can be seen with a few design changes since its controversial debut in 2025.The test car features wing mirrors for a start, but also forges ahead with the concept’s lack of a rear window, meaning it relies on a camera for its rear vision, in much the same was as the Polestar 4.The car builds on the stark and nearly featureless body panels Tesla first showed on the Cybertruck, and then rolled out to the updated Model Y in 2025. The spotted prototype maintains the fully covered wheels.Tesla has previously confirmed the Cybercab can be fitted with a steering wheel and pedals even if it wants the design to be entirely driverless, adding fuel to rumors the Cybercab is a re-purposed take on the ‘affordable’ sub-Model 3 car Musk long said the brand was working on.According to a report in 2025, the so-called ‘Model 2’ was personally cancelled by Musk to make way for the driverless Cybercab. Musk then denied it was cancelled, which alarmed employees and shareholders who knew the company had already severed supply contracts relating to the Model 2.Another reason for Tesla going all-in on autonomous vehicles rather than produce a more affordable Model 2 is because of the surging competition in the affordable EV space.It was claimed the cheapest Tesla would be a US$25,000 (AU$36,743) pitch to buyers, although in many parts of the world there are now even more affordable EVs in this space.In this price range just in Australia for example, there is now the option of the Leapmotor C10 (from $45,888), Geely EX5 (from $40,990), and BYD Atto 3 (from $39,990), all of which are in the more popular family SUV size-bracket.Instead, as a short-term solution, Tesla is in the process of rolling-out more affordable base Standard versions of the Model 3 and Model Y in global markets, featuring cloth seats, solid roof panels rather than a panoramic sunroof, and with some stripped-out interior tech like the rear climate and entertainment screen, as well as ambient lighting and electric steering column adjust.It is unclear whether the entry-level versions of the Model 3 or Model Y will debut in Australia. It also remains unclear if our market will ever see the rest of the brands catalogue, like the Cybertruck or Cybercab.Tesla has had a relatively strong innings in 2025 off the back of the arrival of its much-anticipated Model Y update. The updated SUV remained the top-selling electric car in Australia in 2026, selling 22,239 units. It is significantly more than the next most popular model, the BYD Sealion 7, which moved 13,410 units in the same period.The Model 3 also remains a popular option in third place, moving 6617 units over the year, but is tumbling down in raw numbers (-61.3 per cent year-on-year) despite a well-received update launching in early 2024.

Toyota is aiming to have its range of vehicles be at least 30 per cent built from recycled materials by 2030, as new EU regulations are expected to target more than just tailpipe emissions in the next decade.Toyota is focusing on recycled metals, such as re-forged steel used from crushed or deconstructed vehicles as part of an extensive ‘circular economy’ push and to reduce waste.A strategy document shows various initiatives Toyota will be undertaking, which includes up to 25 per cent recycled plastics used in new vehicles by 2030, a declaration on the content of recycled metals (including steel, aluminium and magnesium) for its vehicles by 2028, and future designs will be easier to deconstruct when they reach end of life.The brand flags 19 parts including catalytic converters, bumpers, EV batteries and motors to be designed to be easily removed from scrap vehicles and deconstructed future range of vehicles.Part of this push is to comply with existing and incoming European regulations on materials use and recycling for cars. Regulations around end-of-life products require 25 per cent of plastics used in cars to be from recycled materials, while battery regulations require “recycled usage rate” targets for key materials like lithium, cobalt, nickel and lead.In total, Toyota is “aiming to achieve a recycled material rate in its vehicles sold in Japan and Europe of 30 per cent or more by 2030”. The 30 per cent figure is not by number of parts but by total weight of the vehicle.The report notes there are easier gains to be made toward this goal in the recycling of steel in order to reduce new raw materials used, plastics, meanwhile, are much more difficult to process due to the differences in materials used, and volatile components within them which make them expensive to re-process into new materials.Thanks to this new initiative, Toyota’s Gosei plastics manufacturing subsidiary has developed materials with a 50 per cent recycled plastic content and performance equivalent to newly-made plastics, which it says is a world-first. Examples of this material being used are in the glovebox and grille-backing material in the new Euro-market Camry.Other new Toyotas using recycled plastics include the incoming new-generation RAV4 and the Crown Sport SUV.As the majority of Toyota models sold in Australia are built in Japan, we can expect at least some of its more popular vehicles the RAV4, Corolla, and Camry to be made of this 30 per cent-by-weight recycled materials.While the goals seem to apply at a global level for the brand, it is unclear at this stage whether the targets for vehicles built in Europe and Japan will also apply to vehicles built in Thailand, like the ever-popular HiLux ute.Other brands will have to have similar targets for materials recycling in order to continue to sell vehicles in Europe, with regulators also expected to come after other non-exhaust particulate matter, like tyre waste and brake dust.As a result, many manufacturers are experimenting with re-introducing drum brakes, which capture waste, or using brake systems that heavily rely on regenerative braking via electric motors with back-up friction brakes contained in the motor assembly (inboard brakes), rather than discs on the wheel hub.One of the leaders in the sustainability space, Polestar, issues a sustainability report claiming its new Polestar 4 has the lowest lifecycle emissions in its entire range, despite it wielding a massive 100kWh battery pack. The brand says this is largely due to advances made in using recycled aluminium and steel in the car’s frame, as well as renewable energy power used in its factory and by suppliers.Nissan is also aiming for a 30 per cent recycled material target, while BMW is aiming for a 50 per cent recycled material content by 2030.

Mazda has pushed back its in-house EV plans to 2029 as it focuses development of its incoming in-house hybrid drivetrain, according to a new report.Mazda had planned to launch its next-generation Japanese-developed electric car in 2027, but had pushed back to 2028 and now 2029. According to industry source Automotive News this is because hybrid demand is booming in the US, while electric vehicle incentives are being removed.The outlet quoted Mazda’s CEO Masahiro Moro as saying the brand expects EV sales now to only account for 25 per cent or less of its global sales due to changing market forces, particularly in the US.This revises Mazda’s original expectations of 25 - 40 per cent of global volume to be fully electric by 2030.However, while a significant portion of the brand's sales remain in North America and Japan, a significant portion remains in markets like Europe and Australia. Australia is the third largest market by volume for Mazda globally, after the US and Japan, forcing the brand to adapt to our conditions.This means sourcing more low emissions vehicles in the interim to comply with our Euro-inspired New Vehicle Efficiency Standard (NVES). This recently-introduced regulation tightens the vice on carbon emissions based on manufacturer’s vehicle sales, under threat of fines for every unit sold which pushes them over a pre-defined CO2 limit.Mazda is one of the most exposed brands in Australia currently. It offers only a limited array of hybrid models, with the majority of its sales still being pure combustion vehicles, like the ever-popular CX-5.A next-generation CX-5 is due, although it will continue on with a petrol engine until the hybrid variant launches in 2027. Unlike the hybrid Mazda CX-50 available in America, which borrows its hybrid tech from Toyota, the new CX-5 will use an in-house Mazda-developed hybrid system the brand calls SkyActiv-Z.In the interim, Mazda has confirmed it will sell the China-built fully electric 6e sedan and CX-6e, both are platform-shares with Changan’s Deepal brand. The brand has earmarked even more models to potentially spawn from this tie-up.Potentially this could include a Mazda take on Deepal’s S09 over-five-meter-long large SUV, or a small SUV based on the more compact S05, which would sit beneath the CX-6e to compete with the likes of MG’s S5.In another potential blow to Mazda in Australia, there are also fresh reports out of Japan that its two entry-level models, the Mazda 2 and CX-3, will cease production over the course of 2026.While these two cars are the oldest models in Mazda’s line-up, they continue to sell well in Australia thanks to regular updates. The removal of these accessible models plus the delay on a hybrid CX-5 could see Mazda tumble down the sales charts in 2026, making the roll-out of its Chinese-built models ever more important. However, Japanese media are also reporting a small car successor is due based on the Vision-X compact car shown at Tokyo Motor Show in 2025. The model will reportedly be built in Thailand as part of a push by Mazda to make the country a new export hub. Again, if this model does come to Australia, it could be as far out as 2028, making Mazda’s short term outlook for 2026 and 2027 more challenging.Mazda has told CarsGuide in 2024 its order of priorities are the new CX-5, its hybrid version, and then “small architecture cars.”Stay tuned for more on Mazda’s plans for 2026 as it faces a rapidly changing new car market. In particular it will need to fend off an aggressive new model strategy from an ambitious BYD, which is plotting a top-three market position by the end of the year.

A game-changing battery technology is just around the corner.Chery’s has revealed more details of its solid state battery set-up, according to Car News China. It will feature on its Exeed Liefeng shooting brake model, offering a potential driving range of 1500km.The car falls under the Exeed branch of Chery, and has been earmarked for a launch in 2026, after a prototype of its battery was first unveiled late last year.Solid state batteries are touted as the future for electric vehicles and will delete range anxiety.They can achieve far superior energy density than conventional batteries, and could be more durable and safer. They use a different mechanical separator and ion conductor between the anode and cathode that is not a liquid or gel.The Liefeng is expected to use Chery’s Rhino S solid state battery, which has a claimed energy density reaching an astonishing 600Wh per kilogram. Even the most energy dense batteries are only capable of about 250Wh currently, highlighting the breakthrough nature of Chery's new technology.The battery is claimed to be able to perform reliably in temperatures as low as minus-30 degrees.The car will feature 800-volt charging architecture, and can sprint from 0-100km/h in less than three seconds with a top speed of 260km/h.Chery has persisted with solid state batteries despite other manufacturers ruling them out as a future battery technology at least in the short term. North American car making giant General Motors said in October 2025 that it had no plans to adopt the technology, citing it was still years away.Some manufacturers have been more receptive to solid state potential, such as major Chinese car manufacturer Dongfeng. Dongfeng, which has joint-venture partnerships with Nissan and Honda, recently announced it is entering late-stage trials for a solid state-powered production car, scheduled for launch in 2027. Chery also announced in December 2025 that its Exeed ES8 shooting brake will launch as its first solid state battery model, and have a driving range of 1000km.

We just got a closer look at BYD’s latest products.

While utes and family SUVs dominate the top ranks of the sales charts, small, affordable cars remain extremely important to anyone who doesn’t need so much car.That’s why it’s one of the key categories we’re paying attention to in the 2026 CarsGuide Car of the Year (COTY) awards, in this case specifically those models with entry prices below $50,000.Rather than just hatchbacks and small sedans, we’re including small SUVs in the category given the dwindling number of hatches on sale, and consumer tendencies to opt for a small SUV, even as a first car.Based on review data from our team of journalists, our shortlist of 10 finalists below (in alphabetical order) is a broad group with some interesting variety in their offerings.And, as you’ll notice, the cars eligible for the award don’t necessarily have to be new as of this year - they just need to be on-sale as of January 1, 2026, with a variant under the $50K mark.This category's winner and two runners-up will be announced on February 6, 2026. The Hyundai i30 has been a favourite for years, with its current-generation hatch nearing a decade old. From first cars to fleet cars and hire cars and even sports cars, the offering is broad.But there’s a recent development that judges have strongly considered, and that’s the discontinuation of the standard i30 hatchback in Australia. The well-liked but less popular sedan and the spicy N versions in both hatch and sedan have all been enough to secure the i30 a place amongst the finalists, though.We’re fans of the i30 Sedan, formerly the Elantra, for its packaging and its efficiency in its hybrid form, and the N version has been widely regarded as one of the best-value hot hatches in the world. With pricing from $29,250 before on-roads and the hybrid only $4000 more expensive, the i30 Sedan offers up decent value for money. Even the N only just sits over the $50K mark with its $52,000 starting price. Extremely strong points for the judges to consider.Well-loved by the CarsGuide team, the Kia EV3 is as good as we wish the larger and better-selling EV5 was. But Kia’s small electric SUV faces strong competition from cheaper entrants from China that offer strong showroom presence.Starting from $47,600 before on-roads, the EV3’s line-up stretches to a hefty $63,950, but most agree the base model is the smartest buy as well as the nicest to drive. Key points that have drawn judges to the EV3 are its cute (but not tacky) styling, its clever packaging, and the useful but not extravagant features.It’s one of the more expensive competitors in our finalists, and it’s being outsold by rivals quite convincingly, but the CarsGuide COTY doesn’t reward showroom figures. Game on.Like the i30 earlier in this list, the Mazda3 is a veteran of the new small car market, with its current generation having been unveiled in 2018.Once seen as pricey compared to rivals, the Mazda3 is now a rather budget-friendly option as cheaper cars have disappeared over the years - and its sleek styling has held up nicely to boot.Starting from $31,310 before on-roads, the Mazda3 has gradually changed with the times, having been through a couple of tech and line-up changes. The hatch and sedan both offer up a competitive front-row environment and engaging dynamics, and despite its age is still one of the best-selling small cars alongside the i30, both trailing the ever-popular Toyota Corolla.Judges have always noted its small boot and lacklustre rear seat, but the former still beats the Corolla and there aren’t many truly spacious second rows in hatches. Is standing out where it matters enough for the judges?Furthering the mix of old and new in the finalists for the category, the MG S5 EV has found favour with judges for backing up its excellent first impressions.Newcomers in the field of budget small SUVs have tended to disappoint, especially dynamically, but the CarsGuide team was impressed by not only how the MG S5 fares compared to the brand’s earlier efforts, but also how it performs even without comparing it to other MGs.Available from $40,490 drive-away and costing just $47,990 for its top-spec variant, its extremely competitive price and solid list of features bolster an already strong offering.Scoring highly in every category across CarsGuide’s review format, the MG S5 EV shouldn’t be considered an underdog in the COTY fight. Mini, even with its less traditional models, is near-universally loved. So it should be little surprise that one of its new models sits in this list.The Countryman is now available in both petrol and electric, though its starting price is a hefty $49,990 before on-roads for the base Countryman Core. That means it just sneaks into this COTY category, even if getting into its EV version starts from $64,990.Still, Minis are rarely on shopping lists for their value offering, and the Countryman offers impressive tech and features, plus dynamic driving and of course that fun Mini styling.In a category where value and convenience are key, it’ll be a hard sell, but the current Countryman is essentially a BMW for less money, and arguably more interesting. Take that into consideration, and things are looking up.It’s been a big couple of years for the Qashqai, with Nissan’s small SUV scoring a big facelift quite quickly after its current third generation showed up. In early 2026, the Qashqai will go hybrid-only and start from $45,640 before on-roads with its front-wheel-drive-only, 140kW e-Power hybrid the only option. But its petrol offerings fell within the bounds of the COTY judging timeline, and so are also part of the consideration.Attractive styling, smooth power delivery and handling, and a now up-to-date interior with practical features all contribute to a convincing package, but the imminent loss of its petrol-only models will mean the Qashqai is set to become around $10,000 more expensive than before at its base level.Nissan’s extremely competitive ownership offering (the warranty is 10 years and 300,000km if you service with Nissan, five-year/unlimited kilometres otherwise) makes the Qashqai even more tempting. Ticking a lot of boxes there.Stylish, niche, quirky… French. The Peugeot 308 in its current generation leans in hard to all of these things, not least because it’s only available in a single, high-spec hybrid variant for $48,990 before on-roads.It’s gorgeous inside, outside, and to drive, but it’s cursed with limited commercial and perceived value appeal - only 88 were sold in 2025.The 308’s features list is strong enough to rival much more expensive alternatives, and its strongest points in terms of dynamics are most likely to appeal specifically to driving enthusiasts.There’s a lot to like about the Pug 308, it’s just that most people forget it exists. A CarsGuide COTY trophy in the cabinet would surely help with the latter issue…Toyota’s baby icon has gone through some changes lately. In the last few years, we’ve seen it grow up from the simple, affordable ‘first-car’ option it once was to be a simple, much less affordable option. Oh, and now there’s a version of it that’s basically a rally car for the road.A Yaris used to be something you could reasonably buy new as a teenager if you were thrifty, now it’s a $28,990 (before on-roads) option at its entry level thanks to its increased level of safety kit and having gone hybrid-only,Fortunately, it’s still an excellent light car, and even though it’s outsold by all its rivals it still does exactly what a city car should do - getting you around efficiently and with no fuss.In terms of how it snagged a spot in the finals for this category, it helps that the GR Yaris hot hatch is one of the two best drivers’ cars Toyota currently builds.Getting into a German SUV doesn’t have to be an expensive operation, and the $34,990 starting price (before on-roads) for the VW T-Cross is proof. Even the top-spec R-Line comes in at $41,490, and the features list is healthy.To boot, the T-Cross is fun to drive, and judges enjoy its practicality inside, plus the sharp styling outside.While not as efficient as some in its class, nor as cheap to own in terms of servicing, the T-Cross offers a step-up from rivals in the class that are seen as practical budget offerings.Still, its last update was in 2024, so it’ll have some work to do to convince judges it’s still up to date.Alphabetically, and probably in terms of public familiarity, the last to make the shortlist is the Zeekr X, a small electric SUV designed in Sweden but built in China.Cousin to the Volvo EX30 and Smart #1, the Zeekr X has good pedigree and the performance to back it up.Liked by judges for its value, bold style and on-road performance, the Zeekr X is one of the bigger unknown quantities in this COTY category.A recent price cut makes it a $49,900 offering before on-roads, meaning it only just slips into the sub-$50K contest, but with its list of features it should prove a compelling contender. 

The small car segment, especially on the premium and luxury end of the spectrum, has been very tumultuous over the last few years with hatchback and sedan sales plummeting, while SUV sales have climbed astronomically.In order to combat this, as part of our ongoing 2026 CarsGuide Car of the Year awards, we’ve combined small premium passenger cars and SUVs into this segment.It’s worth noting that each shortlisted small premium car mentioned below is inclusive of the entire line-up, though its entry price must be under $80,000 before on-road costs for this particular category.The following is a rundown of our top 10 sub-$80K small cars in alphabetical order and why they made the cut. Our top three, including the category winner, will be announced on February 6.Note Mercedes-Benz's current A-Class, CLA and GLA were ineligible as they were unavailable for review.While many brands are fleeing this segment of the car market, this German small hatch and sedan is still offered in Australia in a wide range of trim levels and variants. Beyond the normal A3 variants, there’s the sporty S3 and the fire-breathing RS3.It notably made this shortlist due to the latter which is still offered with an iconic five-cylinder engine. However, we do wish it made just a bit more noise like the older models did.Beyond this, CarsGuide reviewers praised the A3 line-up for its capable and engaging driving dynamics, as well as its luxuriously equipped and premium-presenting interior.While the A3 hatch and sedan may be newer, the Audi Q3 small SUV has been soldiering on for a couple of years now without any major updates.The current model is reaching the end of its lifecycle and is set to be replaced by a new-generation model during 2026.Despite this, CarsGuide reviewers liked how the Q3’s exterior design is ageing, even in the polarising Sportback body style, plus the on-road manners are both elegant and fun.The new-generation version of the BMW 1 Series hatchback launched locally late in 2024, offering everything from everyday commuter trims to the M135 xDrive hot hatch.CarsGuide reviewers were impressed with its driving dynamics and outright performance, though fuel efficiency took a hit as a result.Additionally we liked the new and modern front-row layout, however the exterior design, especially at the front, likely isn’t for everyone.The X1 small SUV is the most popular BMW in Australia currently and for good reason.It launched locally in new-generation guise in 2022 to popular fanfare, then the all-electric iX1 variants joined the line-up in 2023, cementing its status as a benchmark small SUV.CarsGuide reviewers praised X1/iX1’s on-road manners, as well as the modern and high-tech exterior and interior designs. However, common European quibbles like tyre roar and suspension bumps can intrude into the cabin.The X2 is a swoopy ‘coupe’ SUV counterpart to the X1 small SUV and still notably offers both petrol and electric (iX2) powertrain options.While its exterior design is polarising and not for everyone, CarsGuide reviewers appreciated how polished the drivetrains feel from behind the wheel. The X2/iX2 is also affordable when compared to premium rivals from the likes of Mercedes-Benz and Volvo.The few dislikes were centred around the X2 M35i xDrive’s firm ride due to its large (and thankfully optional) 21-inch alloy wheels, as well as the slight reduction in boot capacity over the X1/iX1.This spicy Spanish small crossover SUV is the clear front-runner for Cupra in Australia. Arriving in 2022, the Formentor is offered in a range of variants from warm to hot, plus even a plug-in hybrid (PHEV) offering.CarsGuide reviewers appreciated the lifted hatchback looks and the smile-inducing driving dynamics, however some found the multimedia system to be a little finicky and the ride a little too far on the firm side.An oft-forgotten entrant in the small SUV segment, this quirky French electric SUV impresses with its sleek design, maximised interior space and reactive driving feel.There is currently only one trim level of the Megane E-Tech offered in Australia, the Techno EV60, and it’s limited by its 7.4kW maximum AC charging rate, plus the lack of features like connected services that are available overseas.A huge step away from the iconic Fortwo of the early ‘00s and ‘10s, the Smart #3 is the brand’s largest car in Australia to date.With unique looks and a premium cabin feel, the #3 impresses though the driver-assist features can be a little overbearing and the panoramic glass sunroof has no sunshade.More sore points are the average warranty coverage of five years or 150,000km, as well as the hefty servicing costs for an electric vehicle.While a number of these shortlisted vehicles are high-tech or electrified offerings, the Subaru WRX stands out as a purist sports car.Still featuring a turbocharged four-cylinder boxer engine and a manual transmission in certain trim levels, the WRX is offered in sedan and wagon body styles.CarsGuide reviewers praised the WRX’s dynamism, practicality and even value when compared to rivals with similar amounts of power. However, the WRX Sportswagon only comes with a continuously variable transmission (CVT) and doesn’t look as sporty as the standard WRX sedan.This vibrant and quirky Volvo electric SUV stands out on the road thanks to its stunning exterior design with boxy proportions.The interior also stands out, but sometimes not in the best of ways. CarsGuide reviewers found too many of the key features are tucked into menus on the central touchscreen, plus the lack of a proper instrument cluster was grating.