Volvo News
Carmakers teaming up with Chinese brands
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By Laura Berry · 02 Jul 2026
The rise in popularity of Chinese cars has been so rapid it’s left traditional car companies scrambling to keep up in technology and sales.So now it is a case of, if you can’t beat them join them, with the old big carmakers searching for a Chinese partner in a bid for survival.Here’s who some big established brands are teaming up with to weather the electrical storm.The luxury sportscar maker is already part-owned by Chinese behemoth Geely, which has 17 per cent stake in the company, but there appear to be troubling times ahead and a buy out by Geely could be on the cards.Audi lives a completely double life. There’s the brand with the four-ringed badge, which operates in every country except China, and there's the brand with AUDI logo that is only found in China.AUDI models are completely different to the models sold outside China and are developed in a joint venture with MG's owner, SAICIt’s hard not to be envious of AUDI models, which are fully electric and futuristic looking. How much longer will it be before these highly desirable vehicles are exported to the world?BMW and Great Wall Motors (GWM) formed a joint venture in 2019 and the current Mini Aceman and Mini Cooper are one of the results. You knew Mini is owned by BMW right?The current Aceman and Cooper use a platform developed by BMW and GWM and are manufactured in Zhangjiagang and sold to the world.Ford’s global boss Jim Farley talks of the Chinese car brands being an ‘existential threat’, calling brands such as BYD “the best in the business”, and also admits the need to form partnerships. Farley has even suggested Ford forms joint ventures to build Chinese cars within the United States.Ford’s track record of partnerships with Chinese carmakers isn’t terrific. It recently broke up with Jiangling, which had been making versions of the Bronco SUV that were planned to be sold in Australia.Now the hunt is on for a new partner with Ford rumoured to be talking to Geely, BYD and Xiaomi.The embattled off-road brand, Jeep, may be rescued thanks to a partnership between parent company Stellantis and Chinese car maker Dongfeng.The agreement will see two new Jeep models with Dongfeng platforms built in China and exported globally.Land Rover and Chery have been building cars together in China for a decade now, but recently the relationship went to the next level.Land Rover has given Chery permission to revive the Freelander name. The twist is Freelander won’t be a model but a range of models.The extra twist is Chery Freelanders won’t just be built and sold in China, they’ll also be exported globally.How does Land Rover benefit? Well there’s probably a lot of money changing hands, but more valuable than that would be the use of Chery’s plug-in hybrid and EV know-how and hardware in exchange.Mazda has been criticised for its lack of electric vehicles, but its joint venture with Changam appears to be turning that around quickly, with the agreement resulting in the stunning Mazda 6e and CX-6e EVs.Both fully electric, the 6e and CX-6e, are made in China and use Changan engineering and drivetrains. Mazda’s designers were behind the styling.Mercedes-Benz’s joint venture with Geely is a successful one and the Smart brand of EVs is the result of this relationship. Smart sees Geely handle the engineering and production, while Mercedes-Benz looks after design.Mercedes-Benz is also working on a new Phoenix EV platform to underpin its next generation cars.The famous French brand Peugeot will also benefit along with Jeep from its parent company Stellantis's recent agreement with Dongfeng.Two Peugeots will be underpinned by Dongfeng platforms, and the Concept 6 and Concept 7 Peugeots displayed at the Beijing motor show have given us a glimpse of what’s to come.Geely arguably saved Volvo from demise when it bought the Swedish company off Ford in 2010. Now Geely owns about 78 per cent of Volvo, and while that still gives the Chinese parent company control, it allows Volvo to self-rule and operate out of Sweden.Volvo has flourished thanks to the injection of funds and the autonomy, with the vehicles benefitting from Swedish design and Geely advanced EV know-how.Many Volvo models including the EX40 are now made in China and sold to the world.Volkswagen and XPeng signed an agreement in 2023 to produce vehicles in China and in March this year. The first model co-developed by the two companies - the ID. UNYX 08 has entered production.Volkswagen benefits from the XPeng’s EV architecture and is said to be considering exporting co-developed vehicles direct from China in the future.
EV brand hit with surprise ban
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By Tom White · 26 Jun 2026
Polestar has been banned from selling cars in the USA after the 2027 model year due to the country’s new ‘Connected Vehicle Rule’.The new rules in the US crack down on cars with technology sourced from China, including over-the-air connectivity features, with US regulators citing concerns around the amount of sensitive data being collected on its citizens.It is part of a wider protectionist regulatory push in the US to effectively ban Chinese vehicles to protect its large domestic auto industry.Polestar fell afoul of the new rules despite the Polestar 3 being built inside the US and the Polestar 4 being built in South Korea.Volvo, Polestar's sister brand under the same Geely ownership, was granted a specific exemption to the new rules.Policies like the Connected Vehicle Rule can effectively ban individual models or entire brands from sale in the country, but high tariffs are also wreaking havoc on the financials of both the Hyundai Motor Group and the biggest Japanese brands, including Toyota, Nissan and Honda, which all have partial manufacturing footprints in the US and now need to scramble to localise more parts or models.Polestar issued a statement confirming the US made up only a small portion (six per cent) of its current sales footprint, and that it would re-focus on the European market where it says nearly 80 per cent of its sales volumes are centred.The brand also re-committed to Latin America and Canada as important markets in the future.The company said it would sell the remainder of its Polestar 3 and Polestar 4 stock in the US and then wind up its sales operation, continuing to support existing owners through its service network.Polestar noted it is still committed to its future product line-up, which includes the Europe-built Polestar 7 small SUV (expected to share its underpinnings with the Volvo EX30 and Zeekr X) as its next key volume seller.It will also continue to roll-out the Polestar 5 grand tourer and launch a next-generation Polestar 2 in 2027.The future of the Polestar 3 mid-sized performance SUV, which is currently built in the US, is up in the air. The version of the car sold in Australia is still built in China.Polestar’s share price has taken a battering thanks to a range of recent events, which has seen the company’s once global aspirations shrink down to a strategic focus on just a few markets.The brand has closed all of its retail stores in China, where much of its range is built, after selling only a handful of vehicles in 2025. Instead it has shifted to a by-order-only online approach.Despite these developments, the brand reported its highest ever Q1 sales result earlier this year, off the back of stronger sales in Australia, Germany, Sweden, South Korea and the UK.
The car brands beating the Chinese
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By Tom White · 13 Jun 2026
2026 has been a massive year of change for Australia’s new car market. The tide has turned against diesel, and global affairs have pushed more buyers than ever to hybrid and electric cars and into the arms of new brands with more competitive offerings.This has been disastrous for old favourites. In a market where the forever steadfast and market-leading Toyota has taken a nearly 25 per cent hit to its sales figures, something is definitely changing in the mindsets of buyers.Chery, BYD, Geely and Zeekr are up staggering amounts and are stealing sales from Subaru, Mitsubishi and Nissan, which are now looking at a future as former top-10 marques.There are still a handful of big name brands continuing to post gains. It’s a diverse group ranging from Mercedes-Benz to Hyundai.Let’s take a lookAfter years of nosediving down the Aussie new car sales charts, thanks to what the brand would probably describe as a tactical retreat to a more limited footprint and ‘agency’ sales model, Honda seems to have stabilised.The Japanese brand has posted a 5.1 per cent gain year-on-year accounting for a mere 52 units.It’s not a great story looking at the by-the-model numbers, with every car in the brands range posting declines apart from its best-selling CR-V posting a 4.4 per cent gain year-on-year, the ZR-V is up a very modest 0.8 per cent year-on-year and the brand-new Prelude sports car posted an additional 142 units.The Accord sedan has shrunk to a handful of units off of an already-low-base, while the Civic also posted a near 30 per cent decline.Hyundai has had a pretty decent year, even though its initial trailblazing range of EVs have had it tough in the face of new rivals.Up 5.1 per cent for the year, Hyundai’s gains come from its ageing Tucson mid-sizer and high-performing Kona small SUV, which is available with the choice of petrol, hybrid and pure electric power.It also posted solid gains from the addition of the Chinese-built Elexio to its range.The fully electric Hyundai Inster city car, which initially had a tepid reception, has surged back thanks to price-cuts and a renewed interest in electric cars off the back of the fuel crisis. The brand’s once-headline-grabbing Ioniq 5 and Ioniq 6, with their advanced E-GMP 800-volt platforms, continue to lose their shine.The loss of the i30 has also put a dent in the brands range, while the Venue also continues to tumble down the charts as it struggles to compete with keen new Chinese rivals such as the Chery Tiggo 4.Kia has proven to be a success story in 2026, with its well-received range of electric cars and Tasman ute forming a significant part of the brand’s additional volume.A gain of just 2.7 per cent isn't all good news. The Sportage has not quite enjoyed the same sales growth as its Hyundai Tucson relation, down over a thousand units year on year.The loss of the Cerato has been more than compensated for by the arrival of the K4, which has posted a massive gain of 1958 units year-on-year. The once-heavy-hitting Sorento has lost nearly half its volume.The EV3, EV4, and EV5 have all done well, but the EV6 and EV9, which are its most expensive EVs, have posted steep declines.The controversial Tasman ute is barely doing half the volume Kia had predicted pre-launch, it is still a significant volume-add for the brand, with more than 2000 units sold so far this year.The brand is up 3.4 per cent for the year, accounting for an additional 295 units. It is some of the older models from the brand’s line-up kicking goals.The A-Class and related GLA SUV posted solid gains alongside the electric EQA and EQB, while the GLC mid-size and GLE large SUVs have also done well.It’s not good news for the rest of the brand’s range. Its larger electric vehicles have failed to resonate with buyers. The EQE SUV was the hardest hit so far, down 383 units for the year, and the EQE, EQS and EQS SUV ranges all posted significant declines.Volvo’s story of steady-but-surely continues, posting a modest 2.4 per cent gain in 2026.The ever-popular XC40 continues to kick goals for the Swedish brand, with the model up 16.6 per cent year-on-year despite its age. The soon-to-be replaced XC60 also posted a small 1.8 per cent gain.The EX90, the brand’s new large fully electric SUV, is up 46.2 per cent off a very low base. The new SUV is still outsold at a ratio of three-to-one by its XC90 internal-combustion engined predecessor.The EX30 small SUV, which is a platform-share with the Zeekr X, posted modest gains, up 6.3 per cent.
New EV is a 'game-changer', this is why
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By Jack Quick · 22 May 2026
The new Volvo EX60 electric mid-size has been dubbed a ‘game changer’ by the Swedish carmaker.It needs to be too as it’s finally introducing an electric counterpart to its best-selling car of all time, the XC60.Speaking to CarsGuide, Volvo Vehicle Product Lead for the EX60 and EX60 Cross Country, Lorina Gewargis said it’s fun to be standing with the finished product and having delivered the promises the brand made years ago.“I would say we have packed this car with so much new technology that we haven’t done before and we did that in this timeframe,” said Gewargis.“I’m very confident that we have basically sold the kind of three main concerns that some consumers have when going to electric.“We have the range and the charging speed. Then obviously, price is a very important area as well. The price for the EX60 to be equivalent as current XC60 plug-in hybrid .”The EX60 is priced from $86,900 before on-road costs for the Ultra P6 RWD and $101,990 before on-road costs for the Ultra P10 AWD in Australia. These are equivalent with the XC60 PHEV.Volvo is readying a flagship P12 AWD version of the EX60, which offers the full 810km of WLTP-claimed range, as well as 400kW of peak DC fast-charging thanks to the 800V electrical architecture.This flagship EX60 P12 AWD trim will likely cost more than the P10 AWD trim and be closer to the BMW iX3 50 xDrive, which is currently priced from $109,900 before on-road costs and offers 805km of WLTP-claimed range.“We are designing it, engineering it and building it in Sweden. I think that’s the whole game-changer point,” added Volvo Technology and Programs Manager, Power Electronics, Adrian Thuresson.“Of course we have the HugeinCore, where we have fully centralised computing, where we improve this over time, continuously.“This is just the start of a really nice journey.”It’s worth noting that the EX60 is the first Volvo to have a landscape-oriented central touchscreen multimedia system.“We have a new world-first when it comes to restraints,” said Volvo Engineering Manager Front and Rear Structure Analysis, Dr Isabelle Stockman, noting the new multi-adaptive safety seat belt that’s making its debut in the EX60.“So with this … software-based car, we can analyse what’s going on outside of the car using the exterior sensors and also what’s going on inside of the car using the interior sensor.“Based on that information … we can then adapt to the situation with help of these … profiles now in the safety belt and together with the rest of the restraint systems.”Additionally, the Volvo EX60 has a clean, Scandinavian-inspired exterior design without regular door handles. Instead there is a tiny flap with a button at the bottom of the window. It’s a similar set-up to the front doors on the Ford Mustang Mach-E.
Enticing new electric SUV incoming
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By Jack Quick · 20 May 2026
Volvo has detailed the pricing and specifications of its new EX60 mid-size electric SUV ahead of its Australian launch late in 2026.This BMW iX3 and Mercedes-Benz GLC EV rival is an electric counterpart to the XC60, which has been the Swedish carmaker’s best-selling vehicle for over 15 years now.Dubbed a game changer, the Volvo EX60 debuts the brand’s new SPA3 dedicated electric platform, which runs on an 800V electrical architecture. It also offers the most range and quickest charging of any Volvo EV to date.It’s priced from $86,990 before on-road costs for the Ultra P6 RWD trim and $101,990 before on-road costs for the Ultra P10 AWD trim.This starting price is notably more affordable than the BMW iX3, though the German carmaker is launching with the range-topping 50 xDrive trim first, whereas Volvo is launching with mid-spec versions.It’s understood the range-topping EX60 P12 AWD with 810km of WLTP-claimed range, as well as a more affordable, entry-level model will be launching in Australia in 2027.2027 Volvo EX60 pricing Australia 2027 Volvo EX60 drivetrain and efficiency 2027 Volvo EX60 standard equipmentUltra P6 RWD:21-inch alloy wheelsMatrix LED headlightsElectrochromic glass roofPrivacy glassHeat pumpHeated wiper blades11.4-inch digital instrument cluster15.04-inch OLED touchscreen multimedia system28-speaker Bowers & Wilkins sound systemThree-zone climate controlDigital Key and key cardHeated steering wheelSynthetic leather upholsteryHeated and ventilated front seatsHeated outboard rear seatsUltra P10 AWD adds:All-wheel driveAdaptive suspensionNappa leather upholstery2027 Volvo EX60 safetyNine airbagsAutonomous emergency braking (AEB)Blind-spot monitoringFront and rear cross-traffic alertLane-keep assistLane centringAdaptive cruise controlTraffic sign recognitionDriver attention monitorFront and rear parking sensorsSurround-view camera2027 Volvo EX60 warranty and servicingVolvo hasn’t fully detailed the ownership package for the EX60 just yet, though it currently offers a five-year, unlimited-kilometre warranty.Logbook servicing will likely be detailed closer to the EX60’s local launch late in 2026.
Premium electric car now $10,000 cheaper
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By James Cleary · 01 Apr 2026
Volvo has taken a knife to prices of its small SUV line-up with $10,000 sliced off cost-of-entry for its small EX30 Single Motor Extended Plus - now $49,990, before on-road costs.Base pricing for the slightly larger EX40 has also been cut with the entry-level EX40 Single Motor Extended Ultra reduced by just over nine per cent to $69,990, before on-road costs (was $76,990, BOC).When contacted for background on the pricing changes a Volvo Car Australia spokesperson told CarsGuide, “In preparation for the introduction of the game-changing EX60 to local shores Volvo Car Australia has repositioned its 30 and 40 series all-electric vehicles.“To accommodate the arrival of the EX60 it is paramount that we alter our current game plan. “When the all-electric mid-size SUV arrives, it will change the game in the largest electric market segment in terms of range, charging speed, performance, and price,” they said.The repositioned EX30/EX40 pricing (before on-road costs) is below.Speaking at Volvo Cars’ most recent investor briefing in Stockholm, the company’s Chief Commercial Officer Erik Severinson confirmed the upcoming EX60 mid-size EV SUV will be priced at the same level as an equivalent plug-in hybrid (PHEV).So, these small SUV price reductions point to a starting price position for the EX60 at around the same $74,990, before on-road costs, level as the entry-grade XC60 Plus B5 Bright AWD.The flagship XC60 Ultra T8 Plug-in Hybrid Dark AWD sits at $101,990, BOC.The mid-size pure-electric EX60 SUV will initially be offered with a choice of two powertrains.The P6 Electric comes with a single rear motor that produces 275kW/480Nm which delivers a sharp 5.9-second 0-100km/h acceleration time.And the dual-motor P10 AWD Electric’s dual motors send 375kW/710Nm to all four wheels for a 4.6-seconds 0-100km/h sprint.Claimed WLTP range is 620km for the former and 660km for the latter, thanks to its larger 95kWh battery.Charging is near top of the class thanks to Volvo's all-new ‘SPA3’ platform's 800-volt electrics. The P6 can be topped up at up to 320kW, while the AWD P10 rampd that rate up to an impressive 370kW.
Volvo EX30 updated with new entry grade!
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By Chris Thompson · 03 Mar 2026
Volvo has announced a series of updates for its small EV, the EX30, with new variants and tech coming.
Mega Zeekr SUV clone in the works
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By Jack Quick · 28 Jan 2026
Volvo is reportedly looking to make a new flagship SUV to sit above the XC90 and EX90 due to rising demand for such vehicles in the US and China.As reported by Autocar, Volvo CEO Håkan Samuelsson said “bigger SUVs are something we’re looking into”, however the company has “still not made any decision on going there”.“Especially in China and the US, the real three-row SUV is a growing segment and an interesting segment, but so far we have the 90 which covers the three-row,” said Samuelsson.Samuelsson didn’t mention any specific details on what form this new flagship SUV could take, though he did note that the customers in the US and China “probably at least for the next few years would be more interested in a hybrid” and that US production would be likely to minimise tariffs on US vehicle sales.Volvo already has a production facility in South Carolina and currently builds the EX90, along with the related Polestar 3 there.It’s reported this new flagship Volvo SUV could use the Zeekr 9X as a base. Zeekr is another brand that falls under the Geely umbrella and the company is known for sharing its tech between brands.Measuring in at 5.24-metres long, the Zeekr 9X is longer than the circa-5.0-metre Volvo EX90 and XC90. It also has a more overt luxurious focus.The 9X is based on Geely’s SEA-R platform, which is a version of the SEA platform but for large plug-in hybrid (PHEV) or range-extender (REEV) vehicles. It’s set to form the base of the forthcoming Lotus For Me, which is a REEV version of the Eletre SUV.Power in the Zeekr 9X comes from 2.0-litre turbocharged four-cylinder petrol engine along with three electric motors for a humongous total system output of 1030kW and a claimed 0-100km/h sprint of 3.1 seconds.Depending on the variant there are two battery packs available, a 55.1kWh unit which offers up to 235km of range, or a 70kWh unit which offers up to 302km of range, both according to lenient CLTC testing. It’s unclear whether this type of vehicle will ever come to fruition, nor what name it will receive. Previous reports have indicated it could potentially be called the EX100.In mid-2025 digital artist, Sugar Design, mocked up what this new flagship Volvo SUV could look like with current Volvo exterior design language.This includes the iconic ‘Thor’s Hammer’ LED headlights and a full-width rear tail-light set-up with Volvo script written out on the tailgate.
New Zeekr 7X smasher with 800km+ range revealed
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By John Mahoney · 22 Jan 2026
The all-new 2026 Volvo EX60 might be the classiest Tesla Model Y rival yet, and it is due in Australia later this year.The perfect antidote to both the Model Y anonymity and the unnecessary visual aggression dished up by German rivals, the EX60 and rough-road ready EX60 Cross Country's smooth styling should be a hit with buyers, and it is heartening to know that its beauty is more than skin deep.When the EX60 touches down late this year, the mid-size battery-powered SUV will initially be offered in just two powertrains. The P6 Electric comes with a single rear motor that produces 275kW of power and 480Nm and provides for a brisk 5.9 second 0-100km/h dash.Need all-wheel drive and the second P10 AWD Electric delivers with its dual motors boosting traction and producing 375kW and 710Nm of torque for a quicker 4.6 seconds 0-100km/h sprint.The P6 (620km) can travel 20km further than the longest-range Tesla Model Y on the WLTP test cycle with its 83kWh battery.The punchier P10 AWD can go further still (660km), thanks to its larger 95kWh battery.In earlier teases, ahead of the the EX60 reveal, the Swedish brand made headline news when it revealed its latest EV could cover up to 810km on a single charge but that car, the P12 AWD, won't rock up until the middle of 2027, at the earliest.Shame, because the P12 AWD is capable of driving further on a charge than both the BMW iX3 (805km) and the Tesla Model 3 Long Range (750km) that was rolled out in the middle of 2025.If you're a performance fan, the P12 AWD might be worth the wait. Combined with its bladder-busting long range is a pair of dual motors that produce a whopping 500kW and 790Nm of torque that sees 0-100km/h take just 3.9 seconds.It's a similar story for the EX60 Cross Country that has yet to be given a release date for Down Under but should land in 375kW P10 AWD power in either 2027 or 2028.Engineers say the EX60's low-drag body and weight-saving from Tesla-style mega castings and mounting the battery cells directly to the body saving valuable kilos have contributed to enhancing efficiency, which may be true but the secret behind the P12 AWD long-leggedness is the enormous 117kWh battery pack mounted between its axles.Charging is near top of the class thanks to Volvo's all-new SPA3 platform's 800-volt electrics, the P6 can be topped up at up to 320kW, while the all-wheel drive P10 and P12 ramp that rate up to an admirable 370kW with both the entry and mid-spec Volvo taking just 18 minutes for a 10 to 80 per cent refill, while the P12 with its massive battery only takes a minute longer.The catch is few will be able to find a new breed of 450kW ultra-fast DC chargers Down Under but if you do, after ten minutes, you can add up to 340km of range. All models come with 22kW AC charging.Volvo says the rear-drive P6 can tow up to 2000kg (braked) while the pair of AWD versions can tug up to 2400kg.All EX60 models come with optimum double front suspension and a sophisticated multi-link rear suspension with or without adaptive dampers the EX60 Cross Country is the only version to get single-chamber air suspension that can hoist the ride to offer up to 234mm ground clearance.The bad news, despite its more adventurous styling that includes revised front and rear bumper, complete with bash-plates, plus extra black protective cladding all-round, the EX60 Cross Country can't wade any deeper (450mm) than the standard version, although the off-road driving modes are said to work better with the adjustable air springs.Within, designers claim they have strived to create a calming uncluttered place to spend time.Deduct points for a lack of physical buttons with only a crystal roller and skip back and forward controllers cited below the curved 15-inch infotainment systemThere's also no head-up display, but an 11.4-inch digital instrument cluster mounted high-up on the fabric-wrapped shelf-like dash.As well as mirroring the exterior's minimalist design the cabin doesn't let the side down for tech with it adopting a new powerful 'HuginCore' brain that runs powerful processors from NVIDIA and Qualcomm that can crunch high volumes of data quicker.With built-in Google and advanced AI present, Volvo says you can now have a natural conversation with your car. Owners will also get four years of unlimited data that keeps the car connected for free.The same tech runs the advanced autonomous driving aids but it's unlikely this generation will ever run Level 3 or Level 4-style hands and eyes off the road driverless tech, although a supervised hands-off Level 2+ tech will be rolled out during the EX60's lifespan.Space is generous both in the front and rear when it comes to leg- and headroom thanks to the decent 2970mm wheelbase. Volvo has ruled out a three-row seven-seat version, so the rear 523 litre luggage space will remain untouched.Under the bonnet is a 58-litre frunk that can stow the cables and a soft bag.Volvo is confident the latest EX60 will be judged as its safest creation yet when Euro NCAP and ANCAP safety body get their hands on it and the mid-sizer is the first car yet to get its pioneering multi-adaptive seat belts that uses camera and sensors within the car to judge your size and weight to adjust its tension and force to manage load in the event of an impact, reducing belt-related injuries.Despite preparing itself for limited supply initially from the EX60's factory in Gothenburg, Sweden, Volvo Australia is confident that its all-electric EX60 will overtake the current XC60 and fast become its best-selling model.The ancient nine-year-old XC60 that was updated last year, meanwhile, will live on with combustion and hybrid powertrains and receive a third refresh to ensure it can remain on sale beyond 2030 for those not ready to commit to an EV.Pricing for the 2026 Volvo EX60 will be released late this year, with the entry P6 expected to arrive with a price tag just below $100,000 (plus on-roads), with the P10 AWD tipped to cost around $110,000, with the Swedish mid-size SUV set to command a hefty premium over the Tesla Model Y (from $63,400 plus on-roads) but should cost around $10,000 less than the equally all-new BMW iX3.
CarsGuide's favourite premium small cars
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By Jack Quick · 16 Jan 2026
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.