Budget cars

Chinese players in Australia look to get even more aggressive as the country's automotive giants try to offset sales slumps in their own market with an aggressive export strategy to help shift excess metal.That's the latest analysis from automotive experts, who point to falling profits or soaring losses in China's saturated new-car market.To put the market there into perspective, there are now more than 130 brands, and there were more than 500 new models launched in the first six months of 2026 alone.“Such an aggressive rollout of new products was far beyond what the market was able to accommodate,” said Fu Bingfeng, secretary-general of the China Association of Automobile Manufacturers, at an industry forum in July.New analysis from the US's Automotive News details the challenges facing some of the now-biggest car brands in the world. Many are booming in Australia, but it's a different story in their home market, where oversupply is crippling sales.According to the US site, July marked the seventh consecutive month of market decline in China, with sales down 24 per cent compared to the same period last year. The July result was even more stark, with month on month sales down 25 per cent.Several auto giants have released their six-month financial results, with Geely benefiting from a massive 158 per cent increase in exports to protect profits, which still dropped two per cent. BAIC, which partners with Hyundai on the Elexio, reported a net loss of 1.65 billion yuan (345m), while GAC is forecasting a potential full-year loss of 4.6 billion yuan ($958m).Changan, which will soon launch in Australia, and already has a footprint here through Deepal, says its first-half profit could slip by 68 per cent, while Great Wall Motor reports a similar, though slightly smaller, figure.Domestic pressure is fuelling an export boom, with a total 5.35 million vehicles shipped overseas from January to July, up more than 70 per cent on the same period last year.The export boom will likely increase competition and sharpen prices in Australia, which will be good news for consumers, and the opposite for legacy OEMs battling ever increasing Chinese headwinds.

It has never been a better time to buy an SUV with seven-seats, with a range of options across all price ranges.But if you're looking for a seven-seater, but don’t want to spend any more than about $45K? We’ve got you covered.Here are the five most affordable seven-seater SUVs on sale in Australia.The MG QS is last on our list for affordability but first on our list for practicality thanks to its giant five-metre length, which offers more third-row room than the others here. The QS is a proper larger SUV, while the others here are on the smaller side of large.The price of $46,990 is a drive-away offer too, so the value is still outstanding. We have tested the MG QS and liked the roominess, the hefty list of standard features and the 10-year warranty.  Things we didn't like include the fairly small petrol engine, which has to work hard to carry this big car around. We also felt the cabin stying looks great, but some of the materials felt a bit cheap. The Mitsubishi Outlander has been around for decades and has been a stalwart in driveways of Aussie families. A low list price of $42,540 for this entry grade is also good to see. We tested the Outlander and liked its value for money and good looks, but found the third row to be cramped and the CVT transmission to offer lacklustre performance. The Nissan X-Trail is not only one of the original mid-sized SUVs that’s been around for more than 25 years but for a long time it was one of just a few that offered seven seats.The new X-Trail is one of the best SUVs here and it's wonderful to see it priced so affordable at a list price of $41,305.Of course we have tested it and liked the ride comfort and good handling, but we noted that the spare wheel is under the third row seats and little things like the sound system quality weren’t as good as some rivals.Chery has returned to Australia with an array of excellent vehicles and the Tiggo 8 is no exception. At just over 4.7m long the Tiggo 8 is classed as a large SUV, although that’s still not huge.We’ve tested it and liked the quality of the interior, the amount of features for this $41,990 drive-away price and the good ride. We prefer the super hybrid version of this SUV, which offers better fuel economy although the price tag is more than this petrol version.Indian car maker Mahindra makes a pretty compelling proposition here with the XUV 700, which is our cheapest seven-seater SUV at $36,990 drive-away for the AX7 entry grade.The AX7 is considered a mid-sized SUV at just under 4.7m long.We’ve tested it and liked the punchy 2.0-litre turbo-petrol four-cylinder engine, the mountain of standard features for the price, but felt the interior quality could be better and the ride and handling wasn’t exactly great.

The Geely EX2 Inspire is the top-spec version of Geely’s entry into the small EV market, competing with the likes of the BYD Atto 1, GAC Aion UT and MG4.Starting from $30,990, before on-road costs, the Inspire is $4500 pricier than the base Complete but gains plenty of features. Standard on the EX2 regardless are: Auto LED headlights and tail-lightsPowered seat adjustment14.6-inch multimedia touchscreen 8.8-inch driver displayWireless Apple CarPlay and Android AutoUSB-A and USB-C portsFour-speaker sound systemDigital radioGeely connected servicesKeyless entry and startLED interior lightingFeatures added when you upgrade to the Inspire are: Coloured ambient interior lightingWireless phone chargingPower tailgateHeated front seats and steering wheelDecorative metallic trim Contrast black roofRain-sensing wipersIt’s 4135mm long, 1805mm wide and 1580mm tall, with a 2645mm wheelbase. There’s a segment-defying 450L of luggage space between the 375L boot and 75 under-bonnet storage or ‘frunk’.Upgraded from the Complete in terms of its drivetrain, the EX2 Inspire is powered by a 85kW/150Nm motor, mounted at the rear axle. Geely claims it is able accelerate from 0-100km/h in 11.5 seconds and it’s limited to 130km/h.A 47kW battery provides power, while the EX2 Inspire uses a claimed 15.5kWh/100km, which results in a driving range of 345km according to Geely. DC Charging is 80kW, while AC is just 6.2kW.Geely says it was designed with current ANCAP testing protocols in mind and expects a maximum five-star rating later this year, though this is yet to be determined. Regardless, the list of standard safety features in the 2026 EX2 includes:Seven airbagsOccupant sensor and reminderSurround-view camera Rear parking sensorsHigh-beam assistPedestrian alert (low speed)Traction and stability controlHill-descent controlAdaptive cruise controlFront- and rear-cross traffic alertFront and rear collision warningBlind-spot monitoring Driver monitoringEmergency lane-keepLane-change assistTraffic sign detectionGeely offers a seven-year, unlimited km warranty on the EX2, with eight years' coverage for the high-voltage battery.Roadside assistance for seven years is standard and the option to buy up to seven years' of prepaid servicing at $1642 also provides peace-of-mind, the latter saving you $410 compared to the $2052 it costs paying per service. Intervals are every 12 months or 20,000km.

The Geely EX2 Complete is a budget-friendly entry into the EV market from fast-growing brand Geely, competing with the likes of the BYD Atto 1, GAC Aion UT and MG4.Starting from $26,490, before on-road costs, the base Complete comes with plenty of features as standard including: Auto LED headlights and tail-lightsPowered seat adjustment14.6-inch multimedia touchscreen 8.8-inch driver displayWireless Apple CarPlay and Android AutoUSB-A and USB-C portsFour-speaker sound systemDigital radioGeely connected servicesKeyless entry and startLED interior lightingIt’s 4135mm long, 1805mm wide and 1580mm tall, with a 2645mm wheelbase. Between the 375L boot and 75 under-bonnet storage (or ‘frunk’) there’s a segment-defying 450L of luggage space.It’s powered by a 60kW/150Nm motor, mounted at the rear axle, which Geely claims is able to drive the EX2 from 0-100km/h in a sluggish 14.2 seconds. It’s limited to 130km/h.Drawing power from a 35kW battery, the EX2 uses a claimed 15.9kWh/100km, which results in a modest driving range of 252km according to Geely. DC Charging is 60kW, while AC is just 6.2kW.While there’s no ANCAP rating for the EX2 yet, Geely says it was designed with current testing protocols in mind and expects a maximum five-star rating.The list of standard safety features in the 2026 EX2 includes:Seven airbagsOccupant sensor and reminderSurround-view camera Rear parking sensorsHigh-beam assistPedestrian alert (low speed)Traction and stability controlHill-descent controlAdaptive cruise controlFront- and rear-cross traffic alertFront and rear collision warningBlind-spot monitoring Driver monitoringEmergency lane-keepLane-change assistTraffic sign detectionGeely offers a seven-year, unlimited km warranty on the EX2, with eight years coverage for the high-voltage battery.Seven years of roadside assistance and the option to buy up to seven years' of prepaid servicing at $1642 also provide peace-of-mind. Intervals are every 12 months or 20,000km.

The 2026 Geely EX2 hopes to come to Australia and take the lead in the small EV space. In fact, it sold in enough numbers in China last year that it alone would make up close to half of Australia’s total annual new car sales. We took the EX2 for a first-impressions drive around Sydney's northern suburbs to see if the little EV has what it takes.

Audi's incoming budget-friendly EV is getting closer.The Audi A2 e-tron is an electric compact SUV scheduled to launch in Europe by November.It could be the brand’s cheapest EV on sale to date. The A2 e-tron will provide competition for other small electric rivals, the recently-launched Volkswagen ID.3 Neo and the Volvo EX-30.Audi is eager for its new model to follow in the efficient footsteps of its previous A2 practical hatchback.The A2 powered by a 1.2 turbo-diesel engine, offering a sensational 3.0L/100km fuel efficiency. The Audi A2 e-tron will be powered by a single electric motor, with three different power outputs.The base car produces 140kW, while up-spec models make 170kW/350Nm or 240kW/545Nm. Audi claims the A2 e-tron will be its most efficient model on sale.It has a preliminary energy rating of 12.8kWh/100km, according to WLTP standards.This means its 61kWh battery should provide a total driving range of up to 476km - a strong figure compared to other small car rivals. Audi says an improved drag coefficient of 0.24 has boosted energy efficiency by 0.9kWh/100km. The car can DC fast charge at 105kW, so a 10 to 80 per cent fill-up takes 26 minutes. It also offers bi-directional charging, meaning it can power external devices and act as a home power supply. There is no official word on the A2 e-tron launching in Australia. It could complement Audi’s Australian lineup as a more affordable EV offering, but it might be subject to hefty shipping costs from Europe. The A2 e-tron’s Europe by November launch date places any potential Australian introduction in 2027.Audi Australia has been contacted for comment to see if the local branch is interested in the car, and when it might launch Down Under.

Owners of European premium brands are trading in their cars for more affordable Chinese-branded cars, according to Omoda Jaecoo’s local boss.Chery’s burgeoning offshoot, Omoda Jaecoo, has experienced significant growth in the past 12 months, rolling out three models with multiple powertrain variants in quick succession.Capitalising on Australian buyers’ hunger for more affordable, feature-packed cars, Omoda Jaecoo sales have increased by a whopping 1177 per cent year on year, albeit off a lower base and fewer models.With four models available - the Omoda 9 and Jaecoo J5, J7 and J8 SUVs, the brand is now outselling bigger names like Honda, Suzuki, Lexus and another rising Chinese marque, Zeekr.Those sales have to come from somewhere, and Omoda Jaecoo Australia Chief Commercial Office Roy Munoz says while not many people are coming in and cross shopping with other Chery brands, he has some idea of the brands they’ve nabbed buyers from.“Not much of a Chery cross shop, surprisingly, and it's a mixed bag at the moment. We don't have specific data, but what we can see from the past 12 months are the vehicles that are being traded in,” he told CarsGuide.“So you might have a buyer from a legacy volume brand. You might have buyers from legacy premium brands also. So the likes of BMW, Mercedes, Audi, even JLR (Jaguar Land Rover) customers maybe stepping into the likes of a (Jaecoo) J8 or an Omoda 9 or even a J7 as well, even down to J5. So it's hard to pinpoint exactly where they're coming from, but customers are responding well just to that value proposition of these products.”Being one of the fastest growing brands by sales not just in Australia, but globally, is a solid flex, but Munoz explained it doesn’t come without challenges, especially in relation to customer experience.“Well, customer experience, it's always easier to say is the primary focus and hard to do in practice, right? So, I guess in establishing ourselves, yes, being a fast-growing brand, it's not necessarily just about the sales. So, you could be fast growth in terms of sales, but are you fast growth in service? And by that I mean, are you fast to respond? Do you have parts readily available? Are customers generally happy? So for us, growth in terms of sales, yes, that is important. But sustainable growth, to be able to service and support your growing customer base is probably even more important for us.”Munoz acknowledged the new auto brand still has a ways to go when it comes to building a robust aftersales program, but highlighted where it is investing.“We still have a bit of work to do, and the work is being done as we speak. We're investing in not just human resources, but in our parts warehousing as well, parts supply, technician training, and ensuring that, because aftersales sells your second, third, fourth car. Sales sells your first car, primarily. So that customer advocacy is something that you don't build overnight. It’s built over time, and it's built through every customer interaction. So we treat each one as seriously as each other.”Munoz wouldn’t be drawn on sales targets for Australia, and he also said there’s no hierarchy within Chery Group dictating that Chery must be the top brand with others like Omoda Jaecoo, Lepas and iCaur sitting behind. This was once Hyundai Group’s strategy years ago - Hyundai was the main brand and Kia the smaller sister brand.“No, I guess we've got our own sort of strategies and growth ambitions. Certainly, as long as it's a Chery brand, we'd love to see it on top. Chery on top. Sorry, had to throw that in there. But certainly, I think you'll find when you look at the global data… in some markets Chery might be selling better, in other markets Omoda Jaecoo might be selling better. It really depends on how the market responds to those brands. But I've said it before: as long as a customer has purchased a Chery Group product, they're a winner.”

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

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

GWM has just stepped up its budget EV game in Australia, unveiling the Ora 5 hatchback.There is no official news on a launch for the Ora 5 hatchback, but there is a good chance it will hit showrooms before the end of the year, with deliveries of the SUV variant already beginning.GWM Australia has been contacted for comment to find out launch plans for the car. The Ora 5 hatch shares much of the same design and set-up as its SUV sibling, but it has been given a lower and sportier stance, according to GWM. It differs from the SUV as it does not featuring roof rails. It keeps the same bubble headlight design and general exterior look. GWM also confirmed it has the same 58kWh battery with a driving range of 435km on WLTP standards. The brand did not confirm what will power the hatch, but given it is so similar to the SUV, it is expected to have the same single electric motor producing 150kW and 260Nm. Pricing remains unknown at this stage, but there is potential for it to be priced under the SUV, which starts from $33,990 (drive-away).The news comes after the brand ditched its Ora hatch Down Under earlier this year to make way for the Ora 5 SUV. The Ora faced serious budget competition from other Chinese rivals such as the BYD Dolphin that is priced from under $30,000 (before on-road costs), while the Ora was priced from $35,990 (drive-away).Competition in the EV hatch space has increased significantly, including the arrival of the GAC Aion UT ($31,990, before on-road costs). The Ora 5 is generally bigger than many of these EV hatch rivals.It joins at a time when GWM continues to grow on the sales front and chase down legacy brands in Australia.Chinese competitors such as BYD and Chery have experienced more growth than GWM in 2026, with the affordability proving a key selling point.