Small Cars

This car will change everything you thought about the humble Toyota Corolla.On the eve of the Corolla’s 60th birthday, the Japanese giant has confirmed the GRMN Corolla is headed Down Under.Toyota Australia Vice President Sales, Marketing and Franchise Operations John Pappas said the new GRMN Corolla is the best of both worlds.“This is truly our GR philosophy in action, and has produced an astonishing high-performance driver’s car that is as at home on the racetrack as it is on the road,” he said.It takes the already red-hot GR Corolla hot hatch, and turns the dial all the way up.Spawned from Japan’s Super Taikyu race series and tuned and tweaked at the Nurburgring race track in Germany — dubbed the Green Hell — the GRMN is the brand’s most driver-focused Corolla of all time.The GRMN has just two seats and a rocket of a 1.6-litre turbocharged three-cylinder petrol engine delivering 221kW and 408Nm.It has upgraded front and rear suspension and fatter Michelin Pilot Sport Cup 2 rubber for improved performance on track.Toyota has optimised the all-wheel drive set-up for improved torque delivery and tweaked the power steering to give more feedback during high speed cornering.The Corolla GRMN is leaner than the standard manual GR Corolla, having lost 40kg. There is also a unique instrument panel for greater driver concentration and GRMN design touches throughout.Exterior updates include bonnet and fender ducts for increased ventilation, front side spoiler and large rear wing with five step adjustment for increased aerodynamics.It is only available in two colours: matt black or khaki.Toyota Australia said the Corolla GRMN will arrive in limited numbers from 2027.

For the first time in Australia, electric cars are outselling diesel ones in what appears to be a major turning point for the Australian market.The latest data, compiled from both the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council, shows registrations of electric cars have more than doubled year-on-year, and now account for just under 20 per cent of Australia’s new car market.This is the culmination of multiple factors, including an influx of affordable Chinese models as the country’s behemoth manufacturers seek export markets to flee tough local conditions, and Australia’s new vehicle efficiency standards (NVES) heavily incentivise lower-emissions models, either to avoid fines or rack up credits.On top of this, skyrocketing fuel prices have clearly made many Australians think twice about committing to another combustion car, and the prospect of government incentives ending further down the track as outlined in the latest federal budget has no doubt only bolstered the latest figures.Digging into the data and one thing becomes obvious - amongst the 10 best-selling EVs, all of them were built in China. In what should come as a warning to legacy automakers yet to embrace “China Speed” as part of their business model in our market, even the most successful models from Tesla and Kia are built in China.This trend looks to continue, with Mazda the next brand to introduce Chinese joint-venture models via the Mazda 6e sedan and CX-6e SUV, both of which use Changan platforms. The Japanese giant will no doubt be betting heavily on these two models to reduce its market-leading projected fine under the new NVES rules.Nissan will also begin to introduce its array of successful-in-China Dongfeng-based models in the coming years, with Suzuki, Toyota and Volkswagen potentially being left behind as they continue to source cars from more traditional manufacturing locations like Japan, Thailand and Europe.May in particular was a bumper one, not just for market leader Tesla, but also for keen newcomers Jaecoo and Geely. BYD dominates nearly half of the top-10 charts, including the Atto 2 and Atto 1, which both arrived in 2026.EV Sales May 2026The year-to-date numbers paint a slightly different, but overall familiar story, with the Model Y managing to maintain its lead over the Sealion 7.Some year-to-date surprises include Geely’s EX5 rising to third place and Jaecoo’s aggressively-priced J5 has largely captured the entry-level EV space.Zeekr has had a huge year off the back of the launch of its 7X as it keeps up with its big order bank, and Kia has managed to hold onto 9th place with its relatively popular EV5.The Tesla Model 3 is in seventh place and is the only sedan on the list.EV sales year-to-date 2026It is hard to say what this chart will look like by the end of 2026, although the complete and ongoing re-shuffle of Australia’s favourite cars looks to continue. One thing is for sure though, China has the market well and truly cornered on fully electric cars in Australia.

My 2015 Suzuki Swift Sport has a recommended 95RON fuel rating. I’ve only put 95 or 98RON in it since I’ve had it and over the past year, it has been pinging like crazy. I’ve changed the spark plugs, run fuel octane additive and injector cleaner and it hasn't seemed to make a difference. It seems to happen the worst between 40 to 60km/h which unfortunately is most of my driving.

I know the government has lowered the Standards for fuel regarding the sulphur content of 95 and 98RON petrol over the past year and I don’t know what I can do about it.

I’ve owned the car for three years now and it wasn’t running this badly when I got it. Its only just clocked over 80,000km on the odometer. I wonder what I can do to stop the pinging? This can’t be good for it long term. I love my car and I can’t afford to buy another one.

I have a 2007 Mitsubishi Lancer ES. Does it have a timing belt or chain?

Chinese cars have entered “uncharted territory”, according to Vice President of Geely Group Li Chuanhai.Chuanhai explained that as Chinese automakers became global entities, they could no longer rely on challenging the status quo of so-called legacy brands, but would have to innovate on their own if they want to move the industry forward.“Franky, the Chinese automotive industry has reached its current position by standing on the shoulders of giants in the century-old automotive industry,” he said.“But now that we’re taking the lead, we have entered uncharted territory. How do we innovate in uncharted territory? I think our logic for innovation needs to change."He said Geely was well positioned to provide multiple power options, such as as petrol, hybrid and EV, across many markets, but there would still be the need to innovate further in the future.“Geely adheres to its energy diversification strategy. Our Thor hybrid, SEA EV, i-HEV, and green methanol developed over 20 years have created a complete ecosystem covering pure electric, hybrid, range extender, methanol, and charging/battery swapping. We’ve successfully explored every path to provide global users with more choices,” he said.Chuanhai outlined some investments Geely was making including collaborations with “more than 50 universities on basic research”. He said this “may not yield immediate returns” for the group, but that innovation required “adequate resource investment, effective ecosystem collaboration, and sufficient talent density”.Chuanhai earmarked the success of its premium Zeekr arm as evidence Geely had moved beyond its challenger status.“We don't have the time to build the brand story that century-old established brands have accumulated over time,” he said.“New energy and intelligent technologies have brought us opportunities for brand advancement. However, we also believe that the foundation for brand advancement lies in safety, chassis and powertrain—areas that best reflect our core professional capabilities."He said the brand is aiming for Volvo’s ultimate safety, Lotus’ ultimate handling and Horse Powertrain’s ultimate performance.He said the 750,000 units Zeekr has delivered in its short existence have an average selling price of more than the equivalent of $62,000, comparatively very high for a Chinese brand, with the national average being a little over half that ($35,000).“The essence of Chinese automotive globalisation is not about low prices and high volume, but about being rooted in technology and driven by brands, ultimately moving from simply selling cars to defining the future of automobiles,” he said.“We hope that Geely's experience can serve as a model for Chinese automakers going global, and we believe that China's automotive industry is fully capable of winning respect and establishing a firm foothold in the world.”Next for Geely in Australia will be its EX2 fully electric hatchback, which will be followed by the Emgrand EM-i plug-in hybrid sedan. Zeekr will launch its flagship 9X plug-in hybrid large SUV before the end of the year, alongside the 7GT fully-electric performance wagon.In 2027, the much-hyped 8X large five-seat hybrid SUV will arrive, with Geely also plotting a yet-to-be confirmed three-row hybrid SUV offering.

BYD has finished second in Australia's new-car sales race for the second consecutive month, delivering more vehicles than long-standing household names like Ford, Kia, Hyundai and Mazda, and trailing only Toyota in terms of total sales.

The electric car sales boom is still in full swing, with the latest data revealing a record-breaking month for Tesla in Australia.Tesla sold 6433 units in May 2026, equating to the highest single month recorded for the Electric Vehicle Council (EVC) ever. This sales surge has been mainly driven by the Tesla Model Y SUV, which achieved 5605 sales in May 2026, more than 2000 units up compared to May 2025.This latest data likely cements the Model Y as the best-selling electric vehicle in Australia, with the BYD Sealion 7 and Zeekr 7 still trailing the popular Tesla.The Model 3 sedan has also seen a big sales boost for May, more than doubling its total compared to the same time last year. Tesla’s increasing sales comes after the brand launched its six-seater Model Y L in Australia, adding further diversity to its lineup. Tesla experienced a tricky April this year, with both its Model Y and Model 3 copping big downturns in sales.The brand said delivery cycles impact how sales numbers look on a month-to-month basis, with differing numbers of cars being imported into the country. Polestar has also experienced some sales growth, with its Polestar 4 up nearly 40 per cent on year-to-date. It comes as high fuel prices continue to weigh on the minds of buyers, accelerating the EV transition.EVC Chief Executive Officer Julie Delvecchio said this data was a crucial point in the EV push."May 2026 is an important moment for Australia's EV transition - the strongest month on record for combined Tesla and Polestar sales,” Delvecchio said. “When fuel prices hurt, people look for alternatives. Electric vehicles offer exactly that - no trips to the servo, no price spikes at the pump, savings of around $3,000 a year.“We know Australians buy cars that save them money, suit their lifestyle and perform well. Record EV sales suggest more Australians are finding electric vehicles tick all three boxes.”Chinese brands such as BYD have also been getting in on the increasing popularity of EVs, with its Sealion 7 mid-sizer expected to continue its strong sales performance in Australia. 

While Japanese brands increasingly turn to Chinese partnerships for more affordable and globally competitive models, it doesn’t always work out.According to Nikkei Asia, GAC, which recently launched in Australia and has some of the biggest name joint-venture partners in China, is in trouble.The Guangzhou-based automaker, which counts Toyota and Honda as long-term partners, has been losing money on every single vehicle it sells as it has recently been trying to fight in an aggressive Chinese domestic price war with BYD and others.According to figures published by Nikkei Asia, at one point the company was losing the equivalent of  A$1714 on every single vehicle sold under its own branding. In its annual results announcement for the full year of 2025 reported to the Hong Kong Stock Exchange, GAC said its subsequent loss in revenue was due to “intense competition in the automobile industry,” earmarking risks to the future of its business from “increasing survival pressure on automobile enterprises and entering the high-speed shuffling phase of survival of the fittest”.GAC said the level of competition was directly eroding its profit margins, and with Chinese brands approaching 70 per cent sales proportion in the local market, it was placing pressure on joint-venture brands.GAC’s annual results documents also revealed some realities of the Chinese market that is directly contributing to the big push for longer-range plug-in hybrid models, which are increasingly making their way to Australia.“Technical requirements for vehicles eligible for tax reductions and incentives has been raised. The pure electric mode range and energy consumption standards for plug-in hybrid (including range-extended) passenger vehicles have been further tightened,” the company said.“If a company lags in R&D or supply chain fails to meet the standards, its main models may not comply with the new regulations, resulting in the loss of subsidy eligibility or market access To meet stricter safety, range, and environmental standards, enterprises’ mandatory investments in areas such as battery materials, thermal management systems, and low-carbon manufacturing processes will continuously increase. At the same time, the phase-out of purchase tax subsidies has directly reduced profit margins per vehicle, presenting severe challenges to the overall profitability of the industry.”As a result, GAC said the company’s operating profit had declined for two years straight, and had recorded a loss for the first time since listing with the exchange in 2010.Nikkei Asia points out the company had been heavily discounting its Aion-branded vehicles (two of which are sold in Australia - the UT hatch and V mid-size SUV) to keep up with the aggressive discounting of rivals, but was failing to meet volume expectations.The bleak competitive landscape comes as GAC’s long-term joint-venture with Honda is due for renewal by 2028 after 30 years. Honda-branded JV vehicles in China have experienced a slump at the same time as its Japanese parent recorded its first ever financial year loss for the 2025 Japanese Financial Year off the back of expensive global EV investments (amounting to the equivalent of $12.5 billion AUD), which have subsequently been cancelled and written-down.Honda executives have reportedly been taking meetings with GAC, and are yet to make a decision on the future of the partnership, according to Nikkei Asia.It is in stark contrast to Nissan, for example, which is only leaning further into its comparatively successful joint-venture with Dongfeng (with which Honda also has a joint-venture), which has netted a range of well-received models with big global potential, including the N7 sedan, NX8 SUV and Frontier Pro ute.GAC/Honda don’t have plans to export cars to markets like Australia. GAC's joint-venture with Toyota has been more successful in China, and has launched in right-hand drive markets such as Hong Kong.Market troubles in China have only been good news for the Australian market, with many brands seeking higher-margin markets to soak up production capacity and bolster profits, which is part of the reason our new car landscape has become so crowded and competitive.

Cupra has revealed it is secretly developing an all-wheel drive version of its Cupra Raval that bags a pioneering quad-motor all-electric powertrain, which will produce epic power that blows Tesla out of the water.Primed to be twinned with a white-hot Volkswagen ID. Polo R, the new Cupra Raval Racing will be the quickest and most powerful hot hatch of all time, with Volkswagen's Spanish performance brand leading its development.Cupra's global product boss Toni Gallego told CarsGuide his brand was pushing ahead to develop the four in-hub motor concept that made its debut on the VW ID. Cross, which is key to unlocking near supercar levels of performance.Expected to be capable of producing around 100kW, despite weighing around 39kg apiece, the state-of-the-art in-hub motors will see the Raval Racing come with at least 300kW.Combined with an uprated battery pack, the 4.1m-long Raval Racing should be able to rocket from 0-100km/h in less than 3.0 seconds – much quicker than the 3.8 seconds a BYD Seal Performance or Audi RS 3 takes, and even quicker than the 3.1 seconds a Tesla Model 3 Performance can achieve.As well quick in a straight line, according to the senior Cupra exec the in-hub units, which package their own power inverter, offers unbeatable torque vectoring and by being able to manage how much force is applied to each wheel on a millisecond-by-millisecond basis can neutralise any understeer or oversteer.Brake regeneration will also be class-leading with the Raval Racing able to claw back more energy than any of its rivals, boosting efficiency and real-world range.Traction will be unbeatable over all road surfaces and conditions, while packaging the motors within the wheels means the Raval's large 441-litre boot carries over unchanged.Aside from adding unsprung weight the biggest disadvantage of the new tech is cost, says Gallego."We requested four-wheel drive from the beginning, but it requires a huge investment."It's crazy. I cannot say the final figures, but the good thing is we can manage the production mix across our four plants to balance out the high development costs."The latter is a reference to both the Volkswagen ID. Polo R and potentially faster versions of the VW ID. Cross SUV sharing the same in-hub high-tech quad-motors. Later on, less powerful all-wheel drive VW Group models could also come with a detuned version of the same powertrain.Gallego was careful not to reveal an exact power figure for the mules already undergoing testing, nor did he provide a timeline for when the faster Raval Racing and ID. Polo R will arrive, but it's thought the pair of fast all-electric hot hatches should land in 2028."Some figures cannot be communicated right now. It is a concept and we are exploring how the performance works. It's a massive investment from the technical centre."According to Gallego, work has not finished on the core Raval as feedback from media and potential owners have requested some changes that will see both virtual gearshifts and a higher 190km/h top speed (up from 175km/h) rolled out via over-the-air updates once the Cupra small hatch is launched.

Believe it or don’t we’re almost halfway through the year and that calls for a round up of the cars that have stood out to us in 2026.So, we’ve asked our fellow test pilots around the CarsGuide office which new car has impressed them the most so far. Here’s our half-year top 5, in no particular order.Honda PreludeHonda’s reborn Prelude sports car is a reminder of the magic this iconic Japanese company can perform at a time when new Chinese brands are drawing our eyes away.A rival to the Toyota GR 86, Nissan Z and Mazda MX-5 the Prelude arrived in May with a hybrid powertrain and a drive-away price of $65,000.Based on the Honda Civic, the Prelude has a 2.0-litre four cylinder engine and an electric motor. Combined output is 149kW.CarsGuide contributor Byron Mathioudakis attended the Australian launch.“Firstly, the performance on offer goes far beyond the sum of its published numbers," he said."Secondly, the fluency of the chassis to communicate with the road and driver makes this a true enthusiast’s car. And thirdly, this leaves us wanting more."Long after the sensual lines are out of sight, your mind’s eye keeps looking back, yearning to return to the driver’s seat. All for $65K drive-away, folks."BMW M2 CSBMW’s new M2 CS arrived in May this year loudly announcing that angry performance petrol cars were still well and truly a thing - and a beautiful thing, too.The Competition Sport version of the mighty little M2 takes that little beast's straight-six turbo and squeezes out more grunt - 390kW and 650Nm.The M2 CS has been one of Senior Journalist Chris Thompson’s favourite finds of 2026 so far.“Small enough to still feel like a nimble sports car but it won't bite your hand too hard," Thompson said."Plenty of power and a healthy torque band, but enough compliance in the chassis/suspension that it doesn't feel entirely like driving a race car. Looks fully siq in Velvet Blue Metallic with Gold Bronze wheels."Denza B5BYD’s luxury brand Denza brought its Toyota Prado rival to Australia this year starting at a list price of just less than $75K.Production Editor Jack Quick drove this large super hybrid SUV at its Aussie launch and had this to say:“It rights the BYD Shark 6’s wrongs in terms of off-road capability and has undeniable value with the amount of high-end touches it has. Plus it’s ridiculously fast. However, it’s not perfect as it’s very heavy and has a busy ride.” Kia EV4 GT-LineKia’s fully electric EV4 sedan arrived in Australia in January looking slipperier than an eel.There’s a single motor making 150kW and 283Nm driving the front wheels and you can have it in three grades with the starting list price being $49,990.Deputy Editor James Cleary drove the EV4 and nominated it as one of the cars that impressed him this year."Polarising contemporary Kia exterior design... but I like it,” he said.  “Snappy, user-friendly interior. Strong performance and useful range. A $65K price tag for this flagship is in line with BYD Seal but $10K steeper than comparable Mazda 6e.” BYD Shark 6The BYD Shark 6 was awarded CarsGuide's Best Ute of 2026 and now it has returned with a more powerful engine (a 2.0-litre turbo petrol four cylinder) in the Performance grade.The new and improved plug-in hybrid ute addressed what was lacking in an otherwise outstanding vehicle - towing ability. Braked towing capacity has increased from 2500kg to 3500kg in the Performance.Dual motors (one at the front and one at the rear) combined with the petrol e engine make an impressive 350kW and 700Nm. Carsguide contributor Stephen Ottley was at the launch and said:“For grey nomads and others who have previously ruled it out, the BYD Shark 6 might suddenly be back on more shortlists.”