Subaru WRX News

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.

With Subaru having shown off its new Performance-E and Performance-B STI concepts at the Japan Mobility Show 2025, its five-model showcase appears to now represent something of a future outlook for the brand.

Subaru to reveal performance duo in Tokyo

In Japan Subaru has reportedly detailed plans to unveil a new prototype at this year’s Japan Mobility Show in October.As reported by Japanese publication Best Car Web, it’s speculated this new prototype will preview a new-generation WRX sports car.Subaru even showed off a shadowy picture of what appears to be this new prototype, as reported by Best Car Web.It looks like a WRX with a bonnet scoop and pronounced front and rear spoilers.This new prototype will also reportedly receive a new horizontally opposed (Boxer or flat) engine.At this stage specifications have not been disclosed, although it will reportedly support E20 carbon-neutral fuel.Subaru also reportedly hinted this new Boxer engine will support electrification, either as a hybrid or plug-in hybrid (PHEV).Additionally, it’ll come with an “evolved” version of its symmetrical all-wheel-drive system that it has been using in the Super Taikyu Series in Japan.This new prototype will reportedly be used for next year’s Fuji 24 Hours race. Subaru has historically used racing as a testing ground for developing its future technologies and products, much like Toyota.“We want to value customers who choose Subaru,” said Subaru Chief Technology Officer Tetsuo Fujiniki to Best Car Web when translated from Japanese to English.“We will continue to make cars that will help them do so.”At this stage it’s unclear if this new Boxer powertrain will eventually lead to a new WRX STI.The current-generation Subaru WRX was unveiled in 2021 and launched locally during 2022. It’s the first generation to be available without an STI performance flagship.Subaru did however reveal the S210 prototype earlier this year, noting it as the “pinnacle of the STI complete cars”. It’s likely not going to be sold outside of Japan, however.

Subaru has announced a suite of updates for the model year 2025 WRX.Pricing now starts at $48,190 before on-road costs for the WRX AWD manual sedan, up $700 from last year.That still undercuts the likes of the Hyundai i30 N Premium sedan which kicks off at $52,000.In raising the prices, however, Subaru has added new standard safety features across the line-up, including a driver monitoring system that uses facial recognition to assess signs of drowsiness or distraction and caution the driver.A new 'Emergency Driving Stop System' is also now standard across all variants. It autonomously brings the vehicle safely to a stop in instances where the driver is unresponsive.On higher grade tS variants, a larger 12.3-inch digital driver's display is now standard. An analogue unit with a smaller central screen will remain standard for entry-grade and mid-spec variants.The same goes for Recaro front sports seats, which provide eight-way electronic adjustments on the driver’s seat and four-way manual adjustments for the passenger seats on tS.There is red 'WRX' embroidery on the dashboard for the new WRX AWD tS Spec B and AWD tS Sport Lineartronic CVT, while the latter also now carries dark grey alloy wheels.Finally, Subaru has added 'Galaxy Purple Pear' as an additional colour option to replacement from 'Solar Orange Pearl' across all WRX sedan variants.Subaru has sold 415 WRXs to March this year, a modest decline of 16 units, or 3.7 per cent, on the previous year. Overall, Subaru’s sales have fallen 9.4 per cent in the same period.

There’s a new special-edition WRX on the way, but don’t hold your breath STI fans, it’s not the news you were hoping for.

Subaru has previewed a new WRX STI prototype to be sold in a limited run of just 500 units, but is it worthy of the STI badge?Well, that depends on who you ask. According to Subaru, this is a legitimate STI vehicle, hence the ‘STI’ branding. But to a STI purist? Maybe not so much.Dubbed the WRX STI S210, the prototype is based on the WRX S4 STI Sport R EX limited-edition released in 2023 and its 2.4-litre turbocharged petrol engine welcomes a 19kW/25Nm boost from the standard model’s 202kW/350Nm.That means it matches the WRX STI EJ25 ‘Final Edition’ – the last STI to be sold in Australia – on power, though it's still 32Nm short on torque.The bump in power comes thanks to an upgraded exhaust system, new air intake ducts and a re-tuned ECU unit, which all sounds great, until you factor in one major caveat: a continuously variable transmission replaces the WRX STI’s signature six-speed manual.That’s right, the now gear-less transmission will send less torque to the wheels than previous models.Perhaps that explains why Subaru isn’t marketing this as a global model, with the vast majority of units expected to be sold in Japan – a fellow right-hand drive market.That said, Subaru Australia has expressed interest in the possibility of the the special-edition variant arriving locally, with a Subaru Australia spokesperson telling CarsGuide:“The latest model unveiled by Subaru Technica International (STI) is incredibly exciting and it is a clear indication of Subaru’s dedication to the continued evolution of the STI brand and its rich legacy of performance vehicle engineering.“We are very interested in the possibilities of another S edition model for the Australian market,” the spokesperson said.Other features on the S210 include 19-inch BBS forged-wheels wrapped in 255/35R19 Michelin Pilot Sport 4S tyres, 18-inch Brembo front disc brakes, electronically-controlled dampers and a Subaru Performance transmission fluid cooler.There’s also an aerodynamic body kit which adds carbon-fibre rear wing, a front lip spoiler, while black and red accents, including on the S210’s unique front grille, adorn the exterior.Inside, there are power-adjustable carbon-fibre Recaro front seats, microsuede and piano black trims, as well as prominent S210 badging.Pricing is unclear, but should it come to Australia it is likely to exceed the $62,440, before on-road costs, price tag of the EJ25 Final Edition.

Subaru has dropped the ball on the WRX STI and its fans deserve better.

There are a handful of new-car bargain gems out there, with a combination of design, packaging, engineering, performance, economy and quality that belie their affordable pricing. We name our top seven picks.

The original cop-magnet has found itself on the other side of the law up north, with Northern Territory Police announcing the addition of the Subaru WRX to their fleet. According to the NT Government, 13 WRXs will join the forces' high-performance vehicle