Small Cars

Chery’s International boss confirmed a local research and development centre is in the works for Australia. Chery International President Zhang Guibing noted that Australian-based engineers would help the brand tune its cars to better suit local conditions. Zhang said an R&D centre is planned, and even suggested one of Chery’s sub-brands could be headquartered in Australia in the future. “We will create an R&D center in Australia,” he confirmed. “We will use more local labor to really teach Chery because we are far Australia. “The habits, the road conditions, the weather is a big difference. Even now… maybe in the future we are also different.” The move to build an R&D centre in Australia would make Chery an on-paper leader in localisation in terms of its Chinese compatriots, with GWM also employing a local ride and handling expert in former Holden guru Rob Trubiani. Chery earlier this year confirmed it would build an R&D centre in Millbrook in the UK, though given the emphasis Zhang places on Australia, it seems an Aussie localisation program will teach the brand plenty about getting ahead in the brutally competitive new-car market. The announcement goes against the brand’s local arm saying last year that local ride and handling work is ‘irrelevant’ because much of the tech in Chery’s cars is too new for local experience to tune. “I think as long as we have the intelligent and educated input, whether we do that work in China or Europe or North America is irrelevant,” Chery’s local Chief Operating Officer Lucas Harris said in late 2025. To further cement Australia’s importance in the eyes of Chery’s top brass, Zhang suggested Sydney or Melbourne as potential locations for one of Chery’s sub-brands’ international operations to be headquartered in future. Chery currently has several global sub-brands: Jetour, Exlantix, Lepas, Luxeed, iCaur, Freelander and finally Omoda and Jaecoo, with the latter often paired together. This came alongside the acknowledgement that many have suggested London as a possible headquarters for Jaecoo’s international arm. He also noted the Stockman, Chery's upcoming ute, will launch in Australia before any other market, including China. Zhang also said Chery’s sub-brands in Australia wouldn’t all be based in the same city, ideally. “Some of the brands, the headquarters maybe put in Sydney. Some of the brand we put not in Sydney, in other cities… Melbourne.” He outlined that even in Wuhu, the plan is for Chery’s sub-brands to at least have their own buildings and spaces to develop and engineer their vehicles, despite the regularly shared engineering and tech across the Chery group. Mr Zhang’s approach is to try and tailor the staff on each brand to best understand the intended audience of the brand by being closer to that demographic where possible. “Actually, the team, the people, the different R&D department people is completely separated. “Because we want this brand from R&D and later the sales the, marketing, the people really is the same customer group of the brand. “Even the building, the design is also a very strong link with the customer feeling. So this is our main decision.  “Even for me, I don't participate. Because I think I'm not the customer group. So if sometimes I make too many decisions, it’s wrong.  “So I will leave more power to the different brand groups. So they will make their own decisions on how to really make the customer happy, because they understand the customers.”

Tesla has just announced some serious discounts to its existing stock in Australia as it fends off increasingly tough competition. Existing and demonstrator Model Y SUV examples are available from $61,020 (drive-away), which is $2950 less than before, according to the brand. The Model Y usually starts from $58,900, before on-road costs. This deal makes the Model Y more competitive with its key rivals, the BYD Sealion 7 and Zeekr 7X, which start from $54,990 and $57,900, respectively, both before on-road costs. This news follows Tesla slashing the price of its top grade ‘Performance’ variant from $89,400 to $84,900 in October 2026. Tesla is also offering discounts on its Model 3 sedan with demonstrator and existing examples of the Premium RWD starting from $57,733 (drive-away), equating to $3530 off. The Premium RWD variant usually starts from $54,900 and is a step up from the base Model 3 that now starts from $45,900 (before on-road costs) in Australia. It also means it’s priced more closely to the Premium grade of the BYD Seal that starts from $52,990 (before on-road costs). The Model 3 doesn’t sell as prolifically as its Model Y SUV sibling, but it still managed to shift 5775 units up to September 2026, which is more than the BYD Seal (3808). The Model 3 is available with a single electric motor that produces 190kW and 375Nm or dual motors, producing 343kW and 741Nm. The Model Y also has single or dual electric motor options, producing 220kW/420Nm, 378kW/493Nm, or 461kW/741Nm. The Model Y is the best-selling electric car in the world, and Australia is no exception. It’s shifted 43,386 units up to September 2026. This is more than the BYD Sealion 7 (19,964) and the Zeekr 7X (12,006) combined, but these rivals are rapidly gaining popularity. The mid-size SUV segment is the most hotly contested in the market, and the Model Y is now facing an influx of new and affordable electric SUV rivals in Australia in 2026. The Geely EX5 ($41,990) has seen a similar popularity increase to the Sealion 7 and 7X, while the Lepas L6 ($47,990) has just gone on sale Down Under.

The Leapmotor B05 Design is a new, would-be rival to the likes of the BYD Dolphin, GAC Aion UT and MG4, as well as petrol or hybrid hatchbacks like the Toyota Corolla, Mazda3 and Kia K4, blending European expertise with Chinese value.  Priced from $39,990 drive-away, this electric hatchback isn’t the cheapest on the market, but it does come reasonably well equipped for the price. Leapmotor B05 Design standard equipment: 19-inch alloy wheels LED headlights  8.8-inch digital driver display 14.6-inch multimedia touchscreen Wireless Apple CarPlay and Android Auto Satellite Navigation Wireless phone charger NFC & Bluetooth key Fixed panoramic glass roof with electric sunshade 12-speaker Surround Audio System  Interior ambient lighting Heated steering wheel Heated front seats Rear centre armrest and cupholders While the B05 was very much driven by the European side of the Leapmotor International operation because of its preference for hatchbacks, there’s no doubt it has a distinctive family look to sit nicely alongside the B10 and C10 SUVs. The company says it has a ‘coupe silhouette’ and a ‘wide-body stance’ to give it a sporty look, which also helps it cut through the air better and help with the range. While it’s very much a conventional five-door hatch, it does look well proportioned and inoffensive, which is a good place for Leapmotor to find itself in these early days in Australia. Inside, the overall level of design and finish has been lifted from previous Leapmotor models, and while not yet to European or even some Japanese standards, this is a clear step forward for the brand. Technology is clearly a key selling point for Leapmotor, with a lot of its marketing presentation focused on a younger demographic  It certainly has a clean and straightforward interior, but that’s expected from most modern cars, but in particular the Chinese. There are the two screens for all information and entertainment, but almost no buttons or switchgear.  It means you need to either rely on the voice command, which can be hit and miss, navigate the multimedia screen menus or remember what each of the multi-purpose buttons and dials on the steering wheel do. In short, it’s not a particularly user-friendly car to drive, especially when you’re new and learning its controls. The digital key is a nice touch, but the need to place the NFC card into a specific spot feels like it diminishes the ease-of-use for what is a ‘keyless’ car. The B05 Design is powered by a 160kW and 240Nm electric motor which, unlike most hatches these days, drives the rear wheels.  The Design is powered by a 67.1kWh lithium phosphate battery (LFP) that provides a theoretical driving range of 482km. On the safety front, the B05 Design is equipped with enough safety features to score a five-star ANCAP rating. However, some of the systems are poorly calibrated, in particular the lane keeping assist, which diminishes what is an otherwise pleasant driving experience.

Mercedes-Benz has never been afraid to pioneer new tech, trends and styling. But you could argue the brand’s more conventional, old-school, take on what a compact family car could be, was the B-Class’ biggest hurdle. Certainly, by the time the world arrived at 2019, and the W247 (in Benz-speak) landed in showrooms, the concept Mercedes was chasing was definitely out of fashion. While other carmakers were adding plastic wheel-arch flares, larger bumpers and a jacked-up ride height to cash in on the tidal wave of compact SUV ownership, Mercedes-Benz stuck with a more traditional people-mover concept. The writing was already on the wall, of course, and you suspect that was the mood even within M-B, as the B-Class range shrunk from a choice of engines and trim levels to a single drivetrain package and a single trim level. And by 2024, it was all over for the concept as far as Mercedes-Benz in Australia was concerned, and the B-Class disappeared from price-lists. But a lack of fashion-sense has never meant a particular car has no other redeeming features, and the Mercedes B180 (as the single model was badged) certainly had its followers. You get the feeling, however, that much of the appeal might have been an adverse reaction in some quarter to the march of the SUV. But that was never enough to sustain the B-Class as a stand-alone, single-spec model (although, like many M-Bs, there were packages the buyers could specify). Mechanically, the B180 used a 1.3-litre turbocharged petrol engine driving through a seven-speed dual-clutch transmission to the front wheels. It was a five-door vehicle with seats for five and sold against vehicles like the Audi A3, BMW 2-Series Active Tourer and Volvo V40. The B180’s biggest problem was that it was simply an old-fashioned concept; a people-mover at a time when everybody wanted an SUV. But it was also flawed in terms of its driveline and the combination of the small turbocharged engine which could feel slow to build boost, and the dual-clutch transmission meant progress was not always as composed or serene as a Mercedes-Benz badge suggested. Quality, however, was better than some less recent Benzes and the multimedia system was modern and sophisticated. The B180 was also a very safe car with a great package of inclusions to keep you safe before and after a crash, including side-curtain airbags for every outboard seating position. As such, it makes decent sense for a younger or first-time driver, as well as smaller families. Modern Mercedes-Benzes don’t seem to share the same reputation for bank-vault reliability as some of the brand’s previous efforts. But to be fair, the B-Class of this era was a decently reliable car. That’s on the condition, of course, that it’s been serviced and maintained correctly and driven appropriately. The major problem areas with the Mercedes B180 are shared with many other cars of this era and this level of technology. Probably the main issue is the dual-clutch transmission which can be jerky on take-off and then shift harshly. Often, this is traced to old or dirty transmission fluid which a full service should solve. In some cases, the problem may be with the electronic control module for the transmission. Oil leaks are not unknown on the W247, so check under the car or on the ground where it normally parks. The fuel injectors are also somewhat prone to carbon build-up which reduces their efficiency and plays against performance and fuel economy. You should also perform a full and complete check of all the car’s electronic functions before making a decision to purchase. Make absolutely sure that every button and switch does what it is supposed to and run through all the functions of the multimedia system. Don’t forget to check the air-con blows cold and that the cruise-control works properly. The B180 was recalled only once, to warn owners that the emergency call function (after a crash) was potentially not working. A software glitch meant the car may have deactivated this function without the owner knowing. The good news was this recall required no action by the owner, as the software update was to be delivered to the car over-the-air from Mercedes-Benz. This vehicle was not subject to a facelift or other revisions during its lifespan, so there are no 'good' or 'bad' production years. In any case, as with any second-hand car, you should buy on condition, kilometres travelled and – above all else – the service history. Since the B180 was largely reserved for urban duties (and the fact that it’s still a relatively young car) only a handful for sale right now have travelled more than 100,000km, and the vast majority a lot less than that. That makes it a bit difficult to forecast what the useful life of a B180 might be, but you need to consider that the small turbocharged engine works pretty hard and that any car like this can fall victim to slack maintenance and servicing. The other point to remember is that racking up big distances in this model will make it potentially a lot more difficult to move on when it’s time to trade up. There was only one model and trim level offered in the B180 of this era, so there are no real choices to be made in terms of which variant to buy. That said, Mercedes-Benz has always been very keen on extras packages and this car was no different. With that in mind, we’d look for an example with the upgrade from synthetic leather to genuine hide, and what’s called the Vision Pack which included the full-length panoramic sunroof. The B180 was a sub-$50,000 car when it was brand-new, which means prices are getting more reasonable now, but still a substantial outlay for what is a small people-mover. The most affordable examples are now popping up for sale in the high-teens and for that you’ll be buying a car with something like 100,000km on its odometer. A fully loaded B180 with super low kilometres (less than 30,000km) on board will be closer to $30,000 with $35,000 being asked for the very best examples with all the option packs. The M-B brand has been around in Australia for a long time now, and even though its dealer network is not as extensive as some, you’d be surprised at some of the regional centres that do, in fact, boast a Mercedes dealership (the cars were always popular with farmers in the good years). But beyond that, there’s also an extensive network of independent specialists who know their way around the brand and the cars. They can also often supply parts at a lower cost than dealerships. There’s also a huge online supply of M-B parts thanks to its status as an established global brand. Mercedes cars are highly regarded in many countries, meaning there are some good bargains to be had by shopping globally on the internet. The B-Class generally and the W247 B-Class specifically, were never great sellers for Mercedes-Benz in Australia. It’s difficult to know how many were sold overall, but estimates put the number at around 3000 examples.

BMW has made so much noise about its latest electric ‘Neue Klasse’ models, the iX3 and i3, it’s easy to forget about its expansive line-up of internal combustion models. While the shift to electrification is undeniable, there’s still a healthy appetite for petrol cars, especially when it comes to high-performance models like the BMW M135. Even though the hot hatch segment is slimmer than it once was, there’s still a few solid options at the premium end. At $85,500 before on-road costs, the BMW competes with other Germans including the Volkswagen Golf R ($71,990), Audi S3 ($78,800) and Mercedes-AMG A35 4Matic ($89,700) as well as Japan’s finest, the Honda Civic Type R ($85,000), although the latter is manual only. So it’s more affordable than the Benz but pricier than the Audi. Luckily BMW includes a healthy standard features list for the M135. The M135 comes with the following: 10.25-inch digital driver’s display 10.7-inch multimedia display with BMW Operating System 9 Wireless Android Auto and Apple CarPlay Wireless smartphone charger Digital radio Keyless entry and start Head-up display Powered tailgate Active LED headlights with high-beam assistant 12-speaker harman/kardon audio system Heated front seats Heated M Performance leather steering wheel Panoramic sunroof Front sports seats with lumbar support and massage function Over-the-air updates BMW Intelligent Personal Assistant Personal eSIM and onboard 5G connectivity On top of that the safety offering includes: Auto emergency braking (AEB) Steering and Lane Control Assistant Adaptive cruise control with Stop & Go Lane keeping assistant with active side collision protection Lane change warning Front and rear cross-traffic warning Rear collision warning Overspeed warning Surround-view camera with 3D view Park assist The Brooklyn Grey metallic paint of the test car is a $1700 option. For too long BMWs and other European carmakers scrimped on features, instead relying on their premium brand position to sell cars. Not anymore. The standard features list in the M135 stacks up and it makes for a properly premium small car. A couple of years into its lifecycle, the 1 Series is still a handsome little hatchback, with a squat stance and lovely proportions. The redesigned front end gives it a sharper modern look, too. Inside it features integrated twin screens familiar to other BMW models and while it doesn’t have the latest in-car tech from the iX3, it’s still an appealing cabin. The screens and air con vents are all angled towards the driver which adds to the cockpit feel. There are few buttons aside from what’s next to the gear shifter on the console - drive modes, demisters, hazard lights - but the cabin doesn’t feel overly minimal. Being an M Performance model the M135 gains some snazzy interior touches like red and black synthetic leather upholstery on the seats and door panels which brightens the space considerably. It’s sporty yet still looks premium. Those front seats offer the perfect level of upper and lower body support. Some BMW M car seats are so heavily bolstered they’re almost uncomfortable. That’s not the case here. The M steering wheel has a flash of red at 12 o’clock and like most BMW tillers it’s a bit too thick for me. But the paddle shifters look good and got some use during a dynamic drive. Storage wise there’s a long but shallow centre bin, a couple of cupholders and a wireless charger. The door bins are awkwardly shaped so only smaller bottles will fit, but there is an extra nook for other items. The multimedia setup is not as intuitive as the latest setup in the iX3. The app page features lots of little icons that change dynamically based on what you’ve used most recently. It’s not a challenging system to navigate, which is a plus. There’s two USB-C ports up front if required. The panoramic glass sunroof only has a mesh fabric blind and while it’s much better than some similar shades from other makes, nothing can beat a solid blind when it comes to keeping Australia’s blazing sub out of the cabin. Sitting behind my six-foot tall driving position, the rear row is quite cramped. Legroom is tight - my knees touch the back of the front seats. The roof has been scalloped out for more headroom but it’s still tight because of the sunroof. It has a bulky transmission tunnel so the middle seat is all but useless. There’s two USB-C ports, short and narrow bottle holders, a centre armrest with two cupholders and knee-level air vents. Boot space is 380 litres (increasing to 1200L with the rear seats folded) which is better than the Audi S3 (325L). It has a powered tailgate standard. There’s no spare wheel, only an awful repair kit, but the M135 has handy dual-level boot storage. Under the sculpted bonnet of the M135 is a 2.0-litre four-cylinder turbocharged petrol engine delivering 233kW of power and a meaty 400Nm of torque. It drives all four wheels via BMW’s xDrive system and has a seven-speed dual-clutch ‘Steptronic’ transmission. It can hit 100km/h in just 4.9 seconds and official fuel use is 7.8 litres per 100 kilometres. Over a week of both easy urban driving and enthusiastic back road blasts, I recorded a thirstier 10.3L/100km. Poke your right foot and you’re met with a beat of turbo lag followed by incredible acceleration - that 0-100km/h time is no joke. The engine note is also a delight and adds to the whole experience. BMW’s smooth seven-speed dual-clutch snaps through the gears at the perfect time almost every time. Accelerating quickly to a lower speed limit might require a flick of the paddle shifter. The brakes with the sexy blue callipers are incredibly strong and the steering is super sharp, changing direction crisply. The M135 has loads of grip, holding on to the road even when pushed up a sharp, sweeping incline. Phenomenal stuff. Ride quality is mixed - it’s firm which isn’t surprising for a European hot hatch that’s designed for performance driving. It’s less noticeable at speed on a twisty back road. That firmer ride is more evident driving on pockmarked urban roads at lower speeds, where it can get a little jiggly. But by no means would this sway me from owning the M135. Drive modes include Personal, Sport and Efficient - I didn’t bother trying the latter. Sport mode makes the BMW even quicker, to the point where you need to hold the steering wheel even tighter, particularly on uneven road surfaces. I never felt in danger of losing control or even losing traction.The engine note amps up a notch, too. One quirk that won’t annoy everyone is the auto stop/start. I turned it off every time I drove the car as I found it a little laggy. The advanced driver assist systems work without interruption in the background. No need to switch any of these off. European brands like BMW continue to lead the way with this tech. The M135 is covered by BMW’s five-year/unlimited kilometre warranty which is now the norm for premium brands. BMW’s ‘condition-based servicing’ means the car’s computer tells you when it needs a service. Currently a five-year/80,000km pre-pay package is $2470.

Leapmotor is looking to expand its appeal in Australia, with its latest addition being the all-new B05 hatchback. This is a more European-focused model than its previous Chinese-centric SUVs, which is why development was shared with the European-based engineers from Stellantis. But Leapmotor has already earned a reputation for sharp prices and the B05 is no different. The entry-level B05 Style starts at $35,990 drive-away. For that price you receive the essentials, but not much in the way of luxuries. B05 Style standard equipment: 19-inch alloy wheels LED headlights  8.8-inch digital driver display 14.6-inch multimedia touchscreen Wireless Apple CarPlay and Android Auto Satellite Navigation Wireless phone charger NFC & Bluetooth key While the B05 was very much driven by the European side of the Leapmotor International operation because of its preference for hatchbacks, there’s no doubt it has a distinctive family look to sit nicely alongside the B10 and C10 SUVs. The company says it has a ‘coupe silhouette’ and a ‘wide-body stance’ to give it a sporty look, which also helps it cut through the air better and help with the range. While it’s very much a conventional five-door hatch, it does look well proportioned and inoffensive, which is a good place for Leapmotor to find itself in these early days in Australia. Inside, the B05 offers a good level of space and practicality for a hatchback, however, the Style does miss some basic elements, such as a rear armrest, which means no cupholders for those in the back. Technology is clearly a key selling point for Leapmotor, with a lot of its marketing presentation focused on a younger demographic. It certainly has a clean and straightforward interior, but that’s expected from most modern cars, but in particular the Chinese. There are almost no buttons or switchgear, which means a not particularly intuitive or user-friendly operating experience. The B05 Style is powered by a 160kW and 240Nm electric motor which, unlike most hatches these days, drives the rear wheels. The Style features a 56.2kWh lithium phosphate battery (LFP) which provides up to 410km of driving range, according to the WLTP test cycle. In terms of safety, Leapmotor has included all the necessary features to score a five-star ANCAP rating. However, the brand still needs to better integrate and calibrate the advanced driver assistance systems (ADAS) to ensure they do not irritate the driver.

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Leapmotor has taken its next leap forward with the arrival of its first hatchback - the B05. It brings more European handling and practicality, at a Chinese price. But there are still key areas it needs to improve in to become a more popular choice for Australian buyers.

The Nio Firefly has been given a huge battery upgrade in China as it looks to muscle in on the increasingly competitive budget EV space. The budget-focused EV space has exploded in Australia as electric car sales continue to surge. The Firefly is designed to offer a premium-pitched alternative to the BYD Atto 1 compact SUV ($19,990, drive-away until 15 December 2026) and the Geely EX2 hatchback ($26,490, before on-road costs). At 4003 mm long, it's longer than the Atto 1 (3990mm) but shorter than the EX2 (4135mm). The Firefly now boasts a 60kWh CATL battery pack, offering a driving range of 560km, according to more generous CLTC standards. This is a sizeable upgrade on the previous 42kWh that had 420km of range. The top-spec grades of the Atto 1 and EX2 have 310km and 345km of driving range, respectively, although those figures were calculated using more realistic WLTP testing. The Firefly will continue to use a single electric motor that produces 122kW/205Nm. It will be rear-wheel drive like the Geely EX2, but outpaces the Geely's 67kW (or 85kW) and 150Nm output. Inside, the car still has a 6.0-inch digital driver display and 13.2-inch central touchscreen, as well as a ‘walk-through’ layout to allow easy access between the driver and passenger seats. The Firefly has almost 500L of storage with the rear seats up, which includes a 92L front storage space. The Nio brand looks to be on its way to Australia, but there are scarce details around its distribution. The Firefly went on sale in Thailand in March 2026, a fellow RHD market, leaving strong speculation the car is not too far away from Australia. Australian pricing would differ if it gets the green light but this new China model starts from 119,800 yuan (roughly A$25,000). The brand also offers Battery-as-a-Service, which is where buyers purchase the shell of the car, and pay for use of the battery on a subscription basis. This reduces the initial cost of the car to 79,800 yuan or about A$17,000. Cars imported from China are usually 20-to-30 per cent more expensive in Australia due to taxes and other associated costs, so the Firefly is likely to be more than $30,000 when it gets here. In Thailand, the Firefly is priced from the equivalent of A$35,000, so buyers can expect a similar price point if it arrives in local showrooms. Nio’s premium positioning means the Firefly will likely sit higher than true budget rivals like the BYD Atto 1.