Industry news
Toyota family favourite on the way out?
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By Byron Mathioudakis · 15 Feb 2026
With the 2027 Toyota Highlander EV potentially replacing the existing Highlander/Toyota Kluger in America, the doors open up as to which big Toyota Australia receives from the USA, including the big Grand Highlander Hybrid.
EVs with 1500km of range coming to Oz?
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By Dom Tripolone · 14 Feb 2026
Chinese behemoth Chery is at the forefront of futuristic, game-changing solid state batteries, and Australia could be inline to get the tech sooner rather than later.When asked whether solid state batteries would come to Australia, the answer was simple.“Why not”, said Peter Matkin, Chery's Director of Engineering.Chery Australia Chief Operating Officer Lucas Harris backed this up by stating, “Chery is the brand where you never say never.”Matkin said Chery covers all bandwidth with all the possible options, but the demand has to be there. Time will tell if Australia has that demand.Chery has claimed it will fit the futuristic cells — which are more energy dense and less prone to fire than conventional batteries — to some of its Exeed vehicles in China.Exeed is Chery’s tech and luxury focused sub-brand, which, if Harris gets his way, will land in Australia in the future.“I really like the Exeed product, and I think they make some, you know, really cool, really high end, actual luxury specification vehicles. If I could make a wish tomorrow and it would come true, that would probably be what I would ask for.”The first Exeed vehicle to score the new battery is the Liefend shooting brake, which is claimed to have an electric driving range of up to 1500km.This is due to the energy dense solid state batteries, which are claimed to store 600Wh per kg. That is about triple what an average electric vehicle can store now in its battery.The Exeed ES8 shooting brake is also in line for solid state power, with it claimed to have a driving range of more than 1000km.A timeline on when that technology could reach Australia in a Chery vehicle, or one of its sub brands, is hard to tell.Matkin said the technology is moving so fast and the Exeed brand is selling extremely well in China and other markets, which could push back the timeline, but he was confident it would come.“The technology will definitely pick up. They're already working on the solid state. So technology will come,” he said.
Local specs for Suzuki e Vitara confirmed
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By James Cleary · 13 Feb 2026
With local arrival on track for June this year, Suzuki Australia has confirmed details of the brand’s first-ever pure electric vehicle, the e Vitara.Underpinned by Suzuki’s ‘Heartect-e’ EV-specific platform, the compact SUV will be powered by a single electric motor producing 106kW/193Nm in the two-wheel-drive Motion grade, while the dual-motor set-up in the top-spec, all-wheel-drive Ultra produces 135kW/307Nm.A 49kWh LFP battery in the Motion delivers a claimed range of 344km, while the Ultra’s 61kWh pack extends that distance to 395km.Outright charging capacities are yet to be confirmed but Suzuki said charging times under initial development for both models have been targeted at 45 minutes for a 10-80 per cent DC top up, 5.5 hours for 10-100 on 11kW AC three-phase power and nine hours from 10-100 per cent on a 7.0kW AC single-phase outlet. An integrated heat pump battery thermal management system, aimed at optimising battery performance, driving range and charging efficiency, is standard. Pricing will be released closer to the car’s launch but the e Vitara will be lining up against competitors like the BYD Atto 2 (from $31,990, before on-road costs), Chery E5 (from $38,990, drive-away), Leapmotor B10 (from $38,990 drive-away) and MG S5 EV (from $40,490, drive-away).Local specification has been set with standard feature highlights for the entry-grade Motion including 18-inch alloys, LED headlights (with auto high-beam), multiple drive modes, rain-sensing wipers, a 10.25-inch digital instrument display, 10.1-inch centre multimedia display (with Android Auto, Apple CarPlay and Bluetooth connectivity), a leather-trimmed steering wheel, climate-control air, 12-colour interior ambient lighting, fabric seats and four-speaker audio.As well as additional power and AWD capability, the Ultra adds adaptive high beam, front (LED) fog lights, a glass roof (with shade), Infinity audio (with subwoofer), wireless charging, fabric and synthetic leather seat trim, heated front seats and electric seat adjustment for the driver.ADAS crash-avoidance tech is extensive, including adaptive cruise control, auto emergency braking (AEB), lane keeping assist and lane departure prevention, forward collision warning, ‘High Beam Assist’, blind spot monitoring, a 360-degree camera view plus front and rear parking sensors and rear cross-traffic alert.If all that isn’t enough to avoid a sheet metal interface there are seven airbags onboard and multi-collision brake is fitted to minimise the chances of subsequent impacts after an initial crash.In announcing the e Vitara details, Suzuki Australia General Manager - Automobile Michael Pachota said, “Ahead of its Australian introduction, the e Vitara has already received strong interest and positive reception across global markets, reinforcing confidence in Suzuki’s electric vehicle strategy.”
Game-changing $10K Tesla option abandoned
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By Tim Gibson · 13 Feb 2026
Tesla has announced its Full Self-Driving (Supervised) technology in Australia will move to a subscription-only service from April 2026. Buyers were previously able to purchase the technology for a one-off price of $10,100 or pay $149 per month. It is a Level 2 advanced driver assist system, which can navigate its way to the chosen destination. It is available on Tesla Model 3 or Model Y examples equipped with a Hardware 3 or 4 camera.The brand has confirmed the monthly subscription cost will remain the same for the time being. As with most subscriptions services, such as Netflix, there is a strong possibility for incremental increases on a regular basis.The initial pricing of the Model 3 and the Model Y has not changed despite the shift to a subscription model. The Model 3 starts in Australia from $54,900, before on-road costs, while the Model Y has a starting price of $58,900. Both cars were among Australia’s best-selling electric cars, with the Model Y topping the charts at more than 22,000 sales. Buyers will not be able to outright purchase the technology from the 31st of March 2026, so vehicles will have to be ordered by that date to be eligible for it. Existing owners of eligible vehicles will be able to outright purchase the technology via the Tesla app until the 31st of March as an upgrade post purchase. Tesla’s transfer promotions on the system will also no longer be offered from April of this year. This promotion allowed for owners of existing Tesla's with the FSD or Enhanced Auto Pilot to transfer it onto a new model without additional cost. The announcement confirms Australia will follow Tesla in the US, which ceased the outright purchase of the technology in mid-February of this year. The technology made headlines when it was released in Australia towards the end of last year as the first right-hand drive market to receive it.The move to a subscription-only service for FSD (supervised) is one of several big moves the car maker has made in recent times. Tesla announced in late January that it was cutting production of the Model S sedan and Model X SUV in the middle of this year. This is to make way for production of Optimus robots in the same factory.
BYD's rise and rise could be set to fall
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By James Cleary · 13 Feb 2026
While Australian sales of Chinese vehicles continue to grow at a staggering rate it looks like the country’s car industry, including the world’s largest EV manufacturer BYD, has hit a nasty speed bump due to a perfect storm of challenging market conditions.According to data from the Chinese Passenger Car Association (CPCA) and China Association of Automobile Manufacturers (CAAM), 2025 was a year of solid growth for domestic production which saw total output rise to 34.5 million units, a 9.4 per cent year-on-year increase over 2024.And similarly, exports rose to a record 7.1 million vehicles (up 21.1 per cent yoy) confirming China as the world's largest automobile exporter.But due to multiple factors including regulatory changes, reduced demand and volatile trade conditions, January numbers told a markedly different story.As of January 1, 2026 the Chinese Government revised incentives designed to encourage EV uptake and introduced a five per cent purchase tax on ‘New Energy Vehicles’ (EV and hybrid) which were previously exempt.In 2025 a maximum ¥15,000 (~$3065) subsidy was available to all new EV buyers. But now only cars with a retail value above ¥187,500 (~$38,300) qualify.At the same time, the CAAM said slowing economic growth in China has put pressure on wages, which combined with rising unemployment, has dampened demand for new cars.The government has also moved to eradicate export of ‘zombie cars’ - new, zero km vehicles road registered to qualify as ‘used’, a move likely to create a medium-term glut of new-car inventory.And of course, an all-out trade war with the United States has not only contributed to China’s economic slowdown but effectively cut-off access to one of the world’s biggest car markets.According to China Automotive News, in January China’s new vehicle production dropped 3.2 per cent year on year to below 2.35 million units, with sales down 13.9 per cent.BYD domestic sales fell off a cliff, down 53 per cent to 110,000 units, with other big players also taking a backwards step, including Geely (-13 per cent), Changan (-33 per cent) and Chery (-40 per cent).But conversely, exports were up substantially compared to January, 2025.CPCA data show Chinese vehicle exports rose to 576,000 units (+52 per cent) with close to half being NEVs, that proportion up 13 per cent year-on-year.In terms of an annual outlook, the CPCA predicts domestic sales will grow one per cent in 2026 (down from 9.4 per cent growth in 2025) with vehicle exports growing 4.3 percent, compared to 21.1 per cent last year. Time will tell whether these predictions become reality, but for now, the only way seems to be up for BYD and Chery in particular, in Australia. With 2025 new-model additions including the Shark 6 ute, city-sized Atto 1 electric hatch and compact Atto 2 EV SUV, as well as the larger pure-electric Sealion 7 and plug-in hybrid Sealion 8 SUVs, BYD’s year-on-year sales for the month of January grew by a spectacular 640.9 per cent.At the same time, Chery more than doubled its January sales (+105.8 per cent), largely thanks to the ongoing success of its Tiggo 4 which comfortably led the small SUV category.
New Mazda CX-5's hidden cost cutting
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By James Cleary · 12 Feb 2026
‘Endaka’ is the Japanese term for an expensive yen, and with the country’s currency hovering near 20-year lows in key financial markets it’s returned to common usage across Japan’s export industries, including automotive manufacturing.Throw-in high import tariffs in the United States as well as aggressively priced and specified rivals from China and it’s no surprise some Japanese car brands are working to ‘fine-tune’ the specification and production process for some of their key models.For example, Mazda has made no bones about the fact it’s selectively trimming materials and altering manufacturing techniques to lower per-car costs.Speaking with Automotive News, Mazda Global CFO (and former CEO of Mazda North American Operations) Jeff Guyton cited a change “customers won’t see, to protect profit margins” on its updated CX-5 SUV.The example relates to the leather on Mazda’s current steering wheels being cut precisely and sewn on a curve so the stitching lines up horizontally.Mazda said it found people don’t value that detail finishing more than the cheaper angled stitching used by rivals, so the discipline has been abandoned in the new CX-5 to lower costs.“That’s great attention to detail from Mazda, but when we look at it, our customers are not really valuing that approach more than our competitors, but it costs us more money.”“Our competitors have an angled appearance to the stitches but the same leather,” he said.And Guyton confirmed it’s one of “many, many, many” unseen cost cuts in the new CX-5.“Simply, we put money where the customer is going to see it, and we’ve tried to find big cost efficiencies where the customer doesn’t value it as much or won’t see it,” he said.It’s worth noting Mazda has form in this department.Through the 1990s a volatile yen reached record highs and lows, culminating in the Asian Financial Crisis late in the decade.And after arriving in the early ‘90s, Mazda’s diminutive 121 sedan was a prime endaka victim.Affectionately referred to as the ‘bubble’ or ‘jellybean’ Mazda it started life in Australia as a 1.3-litre offered with a standard five-speed manual gearbox or four-speed automatic transmission.But despite the fact a 1.5-litre option joined it a few years later, cost-focused changes began to emerge as the decade progressed. No clear coat on the paint around the boot aperture, unpainted grey plastic bumpers and side mirrors instead of color-keyed ones and deletion of plastic wheel covers leaving the 13-inch steel wheels exposed on lower grades.Tachometers were removed from base models, sound-deadening material was reduced and interior trim was changed to a cheaper fabric. Base models became manual-only and power steering was made optional.Line up the first and last examples of that DB-Series Mazda 121 and the differences would be stark. So, it will be interesting to keep an eye on the new CX-5 as Mazda looks to its world-wide top-selling model to help it return to profitability after recording a loss across the first nine months of the Japanese financial year (April to March).
China's ‘game changer’ EVs
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By Dom Tripolone · 12 Feb 2026
Chery is going to shake up stale and uninteresting competitors in Australia.Chery Australia Chief Operating Officer Lucas Harris has revealed some of the cars on his wish list for Down Under, and the fast-rising Chinese brand has some of the biggest names in the business in its sights.“I think having a very small and then a small hatchback would be a game changer,” said Harris.“I think there’s a huge amount of potential in those segments, and at the moment I think those segments are a little bit stale and not that interesting.“So if we could bring something like the QQ, I think it’d be a huge amount of opportunity,” he said.That opens the door to two new cheap small cars from Chery’s city-focused QQ range.The very small hatch could refer to the QQ Domi, which was revealed last year.It is a pint-sized electric hatchback measuring just 3.7m long and 1.7m wide, which is just bigger than a Kia Picanto but smaller than a Suzuki Swift.It’s nearest EV competitor would be the larger BYD Atto 1, which is called Seagull in other markets.In China it launched at the equivalent of about $13,000. Chinese cars are usually 20 per cent more expensive here than the home market, which would mean it could lob in at about $16,000. That would make it not only Australia’s cheapest electric car, but the cheapest car overall.It has modest numbers to match its low price tag, with a single electric motor making 40kW and 110Nm sent to the front wheels. A little 28.5kWh lithium iron phosphate (LFP) battery, which is about the same size as found in plug-in hybrids, delivers a claimed driving range of up to 305km, according to the very generous China Light-duty Test Cycle (CLTC).Next up would likely be the bigger QQ3, which just opened for preorders in China.It measures 4195mm long ,1811mm wide and 1573mm tall, which puts it in the same ballpark as the Geely EX2 and slightly smaller than the BYD Dolphin.Power comes from a single rear-mounted electric motor making either 58kW or 90kW, which drives the rear wheels.At its core is a LFP battery that provides a driving range between 280km and 401km, depending on the grade. That is calculated via the lenient CLTC testing regime, so expect much less in the real world.It would likely be priced sub-$30,000 if it arrives Down Under.Chery also has one of the biggest names in the business in its flights, with the Toyota Camry officially put on notice.“And we also have some really great medium and large sedans in other markets — left-hand drive — which I think that sort of size in between medium and large sedans is a real opportunity in Australia as well,” said Harris.“There’s only really one serious competitor, and they don’t have much competition. They kind of own the whole market. So I think there is certainly a lot of opportunity there as well.”Chery will need to play in a lot more segments over the next few years if it wants to crack the top 10 and future top five sellers list in Australia.
Toyota's forbidden Kluger replacement
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By Tim Gibson · 11 Feb 2026
The next-generation Toyota Highlander — known as Kluger here — three-row SUV has been revealed in the United States as an electric-only model.A spokesperson for Toyota Australia said there are no current plans to add the Highlander to the range Down Under. That does not definitively rule out the new-generation Highlander as an option for Australia in the future.The new model will ditch hybrid power, so its unsure if Australia's US-sourced Klugers will continue.An electric Kluger would offer Toyota a three-row SUV EV rival to the likes of the Hyundai Ioniq 9, Kia EV9 and Volvo EX90 in Australia. The top-spec all-wheel drive model has two electric motors, producing 252kW and 438Nm.There are two battery choices on the Highlander, which are a 77kWh with 462km of driving range and a 96kWh battery with a range of 515km. It is also available in a single motor, front-wheel drive layout.The 2027 Highlander is built on the TNGA-K platform, rather than Toyota's electric car platform that has spawned other models such as the bZ4X.The incoming RAV4 plug-in hybrid launching in Australia this year is also built on the TNGA-K platform, which opens the door to a future EV version.It has similar design elements to the new-generation RAV4 and Prado SUVs, with a boxy look and sharp creases in the bodywork, riding on 19-inch wheels. Overall, the car is bigger than its predecessor, but it sits slightly lower than the outgoing Highlander/Kluger. On the inside, it comes as standard with a 14.0-inch central touchscreen and 12.3-inch digital driver display.The seats are covered in a synthetic leather, with the front seats heated as well as the steering wheel. The car is expected to officially launch in the US towards the end of 2026 and the start of 2027.
BYD Atto 3 gets big power and more range
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By Laura Berry · 11 Feb 2026
BYD has given its fully-electric Atto 3 small SUV a massive overhaul with a larger battery, faster charging, more power and a switch from front- to rear-wheel drive.There is a catch - this Atto 3 is only available in the United Kingdom, for now. But the good news is with the UK being a right-hand drive market, it's very likely the same vehicle will be sold in Australia, possibly soon.The overhaul is much needed for the Atto3 which was BYD’s first vehicle to go on sale in Australia when the brand arrived here in 2022.Until now the UK and Australia have had the same Atto 3 - a front-wheel drive-only SUV with a single 150kW motor, and a driving range of up to 480km (WLTP) from the larger 60.48kWh battery variant. But the new Atto 3 in the UK - dubbed the Evo - has been hugely improved.For starters battery capacity has been upped to 74.8kWh for a range of up to 510km and its electrical architecture beefed up from 400V to 800V allowing 220kW fast charging and 10-80 per cent refilling in 25 minutes.Another welcome change is the switch from front-wheel drive to rear-wheel drive with a more powerful 227kW motor improving 0-100km/h acceleration time from 7.3 to 5.5 seconds. A two-motor all-wheel drive variant with 325kW is also available in the UK. The bump in grunt takes the Atto 3 into seriously quick hot hatch territory, outgunning rivals such as the Kia EV3, Geely EX5 and MG S5.The new configuration also allowed BYD to make changes to the Atto 3’s multi-link rear suspension for better handling, upgrading it from a four- to five-link arrangement.The new BYD Atto 3 in the UK now has a bigger 490-litre boot - up 50 litres and it's scored a 101-litre front boot. Interior changes include the repositioning of the Atto 3’s gear selector from the centre console to the steering column.CarsGuide has contacted BYD Australia to ascertain if and when the updated Atto 3 will come to Australia.Since the Atto 3’s local launch in 2022 BYD has rapidly rolled out nine more models including the Shark 6 ute and Sealion 7 large SUV, those two by far the most popular in the brand's range.
AMG gives four-cylinder the boot!
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By James Cleary · 11 Feb 2026
Mercedes-AMG’s avowed passion for small capacity turbo-petrol four-cylinder engines in some of its most high-profile models appears to have cooled with the arrival of the new GLC53 powered by a stonking ‘twin-charged’ 3.0-litre, in-line six-cylinder.Highlighting the new engine’s “high-revving character” and “powerful, sonorous sound”, AMG has clearly responded to the lukewarm reception its undoubtedly powerful but relatively low-key 2.0-litre four-cylinder engines have received since the C63S E Performance launched globally in late 2022.Replacing the four-cylinder GLC43 and (for now, the) GLC63S E Performance, the new GLC53 is powered by a revised version of the 3.0-litre in-line six used in the E53 sedan featuring an exhaust gas turbo and an electric auxiliary compressor as well as a switch from full plug-in support to mild-hybrid assistance via a 48V starter-generator in the nine-speed dual-clutch transmission.Undoubtedly designed to prioritise the combustion part of the hybrid equation, mods include a new cylinder head with improved intake and exhaust ports, a new intake camshaft and a larger volume intake system as well as an upgraded intercooler. As a result, the new five-seat SUV hot rod produces 330kW (442hp) from 5800-6100rpm and 600Nm (640Nm on overboost) from 2200-5200 rpm.For reference, the outgoing GLC43 is rated at 310kW/510Nm with the GLC63 AMG S E-Performance pumping out a staggering 500kW/1020Nm.The GLC53’s integrated starter-generator provides a short-term boost of 17kW/205Nm, at the same time facilitating “recuperation, gliding and the almost imperceptible restarting of the engine during the start-stop function”.Drive goes to all four wheels via a “fully variable” AWD system including an electronically controlled rear-axle limited-slip differential. Claimed 0-100km/h acceleration is a rapid 4.2 seconds.The (steel) suspension tune includes a specific spring-damper set-up and adaptive adjustable damping via separate valves for rebound and compression. Rims are 21-inch shod with Z-rated Michelin Pilot Sport 4 SUV rubber (265/40 fr - 295/35 rr) and braking is by ventilated discs (390 fr - 360 rr) with four-piston fixed calipers up front and single-piston floating calipers at the rear. The Mercedes-AMG GLC43 4Matic is currently priced at $147,500, before on-road costs, and Mercedes-Benz Australia told CarsGuide the GLC53 is due to land locally in the fourth quarter of this year.