Small Cars

Volkswagen appears to have a  monster hit on its hands, as buyers line-up to get their hands on its latest machine.The new Volkswagen ID.Polo electric hatchback has more than 30,000 pre-orders, according to AutoNews.The frantic rush of buyers trying to jump into a ID.Polo has overwhelmed the brands expectations, with customers now facing a 10 month wait.Volkswagen’s little electric car has just gone on sale in Europe, and it appears its success will mean any future Australian arrival could be pushed back to meet demand on the continent.The German brand’s new entry-level electric car will go head-to-head with the new wave of cut-price EVs from China, such as the MG4, BYD Dolphin and GWM Ora 5.It is priced from the equivalent of about $41,000 in Germany, so expect it to be more if it arrives Down Under.Volkswagen is offering three electric motor choices: 85kW, 99kW or 155kW. The German brand has also confirmed a 166kW GTI version, but it won’t launch until next year in Europe.Lower grade versions will use a 37kWh battery, offering a driving range of 329km (WLTP), while higher specifications get 454km (WLTP) of range from a 52kWh unit. Volkswagen has previously said the ID.Polo has a max charging rate of 105kW. The ID.Polo is spawning a range of electric cars including the Volkswagen ID.Cross little electric SUV, Skoda Epiq and Cupra Raval.AutoNews also reported the ID.Cross had received very strong interest ahead of its arrival in European showrooms later this year.Skoda’s version of the ID.Polo, the Epiq, also has more than 35,000 orders.“The Epiq is generating very strong customer interest. We have clearly struck a nerve,” a Skoda spokesperson told Autonews.Cupra’s version, called Raval, also has a long wait list, with reports the Raval and Epiq orders stretch into May of 2027.Volkswagen has been struggling recently as sales in China, and of its first round of global electric cars, failed to fire.It has also experienced huge issues with its CARIAD software department, which has been losing billions of dollars.Volkswagen’s board has recently approved to cut 50,000 jobs, close several factories, cut half of the group’s models and even possibly delete the Seat brand.

A new affordable electric sedan could be headed our way.The GWM Ora 5 Sedan has appeared in Chinese government approval filings as it gears up for launch later this year.At 4758mm long, the Ora 5 is smaller than the Toyota Camry, but will still provide competition for the popular Japanese hybrid sedan.The Ora 5 Sedan will be available in petrol, conventional hybrid and fully-electric set-ups, so its variants cover a broad spectrum of buyers.The Ora 5 Sedan EV will rival the BYD Seal and Tesla Model 3, while petrol variants will tackle the Mazda 3.There are limited details available for the Ora 5 Sedan at this stage.Petrol variants use a 1.5-litre turbo-petrol engine, making 135kW and 275Nm, while the hybrid adds an electric motor to boost power to 166kW and 476Nm.The Ora 5 Sedan EV has a single electric motor, producing 150kW and 260Nm. The front of the Ora 5 Sedan looks similar to other Ora 5 variants with a bubble-like headlight design and an overall rounded look.It has traditional door handles, and from the back, sports a single continuous rear light bar, along with a sloping roofline.GWM Australia has not confirmed if the Ora 5 Sedan will arrive in Australia, but the brand is keen to focus on the name here."In terms of the levels of adoption that we expect to see within this market, within the coming years, we expect (hybrids) to accelerate more quickly," GWM Australia Head of Marketing and Communications Steve Maciver told CarsGuide in late 2025."We think we can do a lot more with Ora… with plug-in hybrid, but EV will certainly come behind that as well, for sure."The electric Ora 5 SUV has already launched in Australia, with a hybrid variant expected to arrive soon.GWM has also confirmed an Ora 5 electric hatchback is on the way for Australia.In August 2026, the Ora 5 GT wagon was approved for sale in China, with the local branch confirming the car was under consideration for Australia.GWM Australia has been contacted for comment to see if the Ora 5 sedan will launch in Australia.

Audi's new A2 is a follow-up act 20 years in the making. This time around the A2 is a pure-electric e-tron model, claimed to be the most energy-efficient in the German brand’s history.Its predecessor, the compact, all-alloy people mover-style A2 hatch produced from 2000 to 2005 didn’t exactly catch fire in terms of sales thanks to a relatively high price and its upright, high-waisted design.But the all-new A2 e-tron is a more conventional crossover-style hatch with an ultra-slippery drag coefficient of 0.24.At global launch the car is offered across four power levels - 125kW, 140kW, 170kW and 240kW - matched with one of three batteries - 52, 61 or 84kWh. All are rear-wheel drive, powered by a single permanently excited synchronous motor. The entry-grade A2 e-tron 125kW has the 52kWh battery onboard and with an energy consumption rating of 13.7kWh/100km boasts a WLTP range of up to 423km.At the top end, the A2 e-tron 240kW is fitted with the largest 84kWh battery, consumes 14.2kWh/100km and has an official WLTP range figure of up to 630km.But the A2 e-tron 140kW fitted with an optional efficiency package has a WLTP-measured consumption of 12.8kWh/100km, making it “the most efficient Audi ever”.Tech highlights include (optional) bi-directional charging - Vehicle-to-Load (V2L) and Vehicle-to-Home (V2H) - DC fast-charging capacity of up to 183kW, Audi Assistant (with artificial intelligence) and the ‘Audi Connected Work’ suite including Microsoft Outlook, Microsoft Teams and an AI-based Work Agent.A standard 12.8-inch curved multimedia touchscreen is paired with an 11.9-inch cockpit display and the magnetic Fidlock fastening system is included to provide “smart organisation and modular storage solutions”.On the environmental front, Audi said, depending on configuration, the Audi A2 e-tron features more than 300 components made from recycled materials, including steel, aluminium and plastics. More than 100 components use post-consumer recycled materials and the car has been developed with end-of-life recycling and reuse as a key focus.Introducing the new A2 Audi CEO Gernot Döllner said, “The A2 e-tron is more than a new model: It represents Audi’s renewal. “It shows how we are rethinking premium for Europe: using resources more intelligently without compromising on quality, technology, or customer experience,” he said. European orders for the new A2 are already open with deliveries scheduled to begin in December.  In Germany, the A2 e-tron 125kW is priced from €38,200 (~A$61,600), rising to €51,200 (~A$82,600) for the A2 e-tron 240kW flagship.

Zeekr has heard your feedback and more of its cars will get tactile buttons and dials as it moves away from exclusively touchscreen-based controls.Speaking to CarsGuide at a 7GT pre-launch event, the head of the company’s design studio in Shanghai, Javier Garcia-Gallardo said more buttons were “definitely” something that will be put into its cars going forward.“For the 7GT’s predecessor, the 007 sedan, we didn’t have physical controls in the centre console. We got some feedback from the Chinese market back then, so when it came time to adjust it for the 7GT we knew it was something we had to change,” he explained.“They add more functionality for the driver, but also a richer interior feeling at the same time. When we move up the line-up to the bigger cars like the 8X and 9X you can see more physical buttons are coming - so we are taking that feedback on.”“Especially those more material customers who are looking at 8X and 9X, they appreciate those switches and buttons and not having to navigate through the touchscreen to adjust their seat or turn on message functions.”“So for those kinds of features you’re going to be using very often, we’ve made sure they have a switch.”Buttons or not, one thing that sets Zeekr apart from its parent brand, Geely, is its unique and decidedly flashier software suite. Something Garcia-Gallardo said has been a huge benefit for the design team to integrate better into the overall feel of its cars.“We have our own operating system exclusive for us and built from zero,” he said.“It’s taken a couple of years to get it where it is now, but we feel it’s at a point where it’s pretty good in the market. For sure, the design team has been one of the major stakeholders developing that.“Being a platform product, the operating system has over the air updates extremely often, so it takes us a lot of manpower to curate and maintain its constant evolution.”Garcia-Gallardo said Zeekr has evolved past its infancy as a spin-off from sister brand Lynk & Co, and it was set for some bigger changes as it aligns to a more global audience.He said it was a challenge to design for the huge Chinese audience, while catering for global tastes.“We need to design cars which appeal to all markets and balance those considerations and requirements.”“China is a big market for Zeekr, and one of the biggest overall markets in the world, so the demands of that market are extremely important, so we need to appeal to the Chinese market to keep growing and be financially stable.”“As we mature as a company though it’s very important we bring global demands and requirements into the design program at the beginning.”“This was happening less at the start because we didn’t have the same global footprint that we have today, but now that we have a stronger customer base we have a wider set of requirements.”He added customer and media feedback, as well as quirks of local market requirements like Australian Design Rules (ADRs) were “certainly part of my day-to-day design briefings”.ADRs saw the animated LED bar across the front of the car deleted from the 7X and 7GT for the Australian market.When asked how much freedom Zeekr’s designers have when it comes to its new models, Garcia-Gallardo said it was an essential pillar of the brand.“The company trusts a lot in design, especially when it comes to defining proportions of the car, and its architecture. I think that’s what makes a car feel special at first glance. It’s those proportions which makes it feel like it doesn’t simply land in mainstream territory.”He added Zeekr’s future updates and new-generation products would see its range more rationalised into its two main design languages, ‘Hidden Energy’ as worn by the 7X and 7GT, and ‘Powerful Elegance’ as worn by the 8X and 9X hybrid large SUVs.Design elements inherited from Lynk & Co, like the dual-DRLs still seen on the X small SUV and 009 people mover are set to be phased out over time.Zeekr leaps up the charts in Australia, almost entirely thanks to its smash-hit 7X mid-size SUV. It has brought the brand some much needed momentum, which it hopes will be realised with the arrival of the fully electric 7GT sporty station wagon before the end of the year, and the introduction of the 8X and 9X hybrid large SUVs in 2027.

Mazda hasn’t forgotten the little things.Most carmakers are moving away from little hatchbacks as sales dwindle as buyers jump into SUVs instead.Mazda has stayed true to its roots by refreshing its ageing Mazda2 instead of tossing it into the too hard basket, giving new and urban drivers a quality choice of wheels.The 2 is no longer the sub-$20,000 proposition it once was with the base Evolve grade tested here starting at $27,290 (before on-road costs). The better-equipped GT grade adds $1200 to the price, and you can get the GT in sedan form for the same price.That makes it about $2000 cheaper than the most affordable Toyota Yaris, which has the added benefit of hybrid power, and about $3000 thriftier than the Volkswagen Polo.A new wave of Chinese machines undercut it, with the MG3 about $7000 cheaper, while even BYD’s electric Atto 1 costs about $5000 less.Relying on purely petrol power the Mazda2 shows its age without any form of electrification in an era when hybrid is king and electric is the wannabe usurper.It uses a 1.5-litre naturally aspirated four-cylinder engine that makes 81kW and 142Nm, matched to a conventional six-speed automatic transmission that drives the front wheels.Mazda claims it drinks just 5.0 litres of the cheapest petrol per 100km.Rival hybrids slash at least 1.0L/100km off that figure and deliver more zip from the petrol-electric combo.The 2 is a handsome machine, and has its competitors beat for design. It wears Mazda’s trademark features with an elegance long gone from small cars.Buyers can expect 16-inch black alloy wheels, LED headlights with auto on and off feature, auto folding black side mirrors, chrome exhaust and a little body coloured garnish in the front grille.Step inside and you’re greeted by a cabin that hasn’t been corrupted by modern distractions.A 7.0-inch multimedia display is small by modern standards, but that’s probably a good thing for young drivers.It is controlled via the touchscreen or rotary dial in the centre console when stationary, with touchscreen controls taken away when moving. The idea being you keep your eyes on the road more.The rotary dial is a bit of overkill as the screen controls so few functions that a touchscreen would suffice.It comes with wired Apple CarPlay and Android Auto smartphone mirroring, digital radio and in-built sat nav.The driver’s instruments are analogue with just an old school digital readout that gives Casio watch vibes for some functions.A head-up display is one of the most useful features in modern cars, and a must for new and experienced drivers alike.Mazda’s head-up display uses a little folding clear screen to project vital information such as travelling speed, posted speed limit and some safety warnings in front of the driver in an easy to view and read spot.Passengers are greeted by black cloth-wrapped seats with red contrast stitching that are well cushioned and comfortable enough for long drives. The GT grade ups the ante with synthetic leather and suede upholstery.A leather-wrapped steering wheel, gear shifter and hand brake give it a more premium feel.Well placed and easy to read steering wheel buttons for volume, multimedia, cruise control and answering the phone are a win for users.There are physical dials for climate functions that are easy to use on the go and a pair of USB-A ports up front so modern phone users beware you’ll need a different charging cord or adapter.A physical handbrake means storage options in the centre console don’t go much further than two cupholders and very small storage bin. This is a little car, so storage options in general are limited.This extends to the rear seat, which is cramped and best suited for only two adults and long-legged humans might struggle on longer trips.Front facing child seats can fit easily but rear facing or capsule seats will severely restrict front-seat passengers.The boot is mini at just 250 litres, so think moderate weekly shop or a few overnight bags. If you need more the sedan ups it to a substantial 440 litres. You can fold down the back seat in both to liberate more space.It does have a space-saver spare tyre under the boot floor, which is a positive.The Mazda2 is one of the most compact machines you can buy at 4085mm long, 1695mm wide, 1495mm tall and with a wheelbase - the distance between the front and rear axles - of 2570mm.You’ll feel tiny on the road, with dual-cab utes and large SUVs towering over you, but in urban environments, tight city streets and underground carparks, the size difference pays off with easy commuting and access to parking spots others just drive right by.It is a commendable city driver that feels most at home in traffic and city streets, as it feels a little breathless and lightweight on motorways.The small engine is perfect for urban driving but you’ll need to work it hard to get up to speed with power delivered very high in the rev range. This means you’ll hear the engine revving to the sky when you accelerate.It feels asthmatic when travelling up steep hills with the car noticeably struggling on the sizeable inclines in and around Sydney. In flatter cities such as Melbourne or Adelaide you’d barely notice it running out of puff.It is a great little car to steer, with great feedback, well balanced, direct and responsive steering.It is light, so you’ll feel bumps and lumps along the way but it does a great job of ironing out the road imperfections for a little machine.Road noise is intrusive at higher speeds and on coarse chips roads, but mostly it is composed and refined.Mazda’s driver’s side mirror is magnified, which takes some getting used to and the jury is still out if it is absolutely necessary.All driver aids work as advertised.The car automatically applying the brakes if it detects a potential collision, it’ll warn you if something is in your blind spot or if a car is approaching from the side as you reverse and an array of sensors will help keep you centred in your lane.Mazda backs it cars with a five year/unlimited kilometre warranty, which is par for the course these days and quickly becoming a subpar package as more brands switch to seven, eight or ten-year guarantees.Seven years of capped price servicing will cost $3286, which is pricey compared to the rival Toyota Yaris. Owners need to visit the workshop every 15,000km or 12 months, whichever comes first.

For the first time ever in Australia, sales of electric vehicles (EVs) surpassed every other powertrain type for a month.Combining both the latest VFACTS and EV Council sales data, a total of 27,078 EVs were sold during the month of August.EVs notably outsold petrol (25,824, down 32.6 per cent YOY) and diesel (23,608, down 22.5 per cent YOY) vehicle sales, however when you combine the two pure combustion powertrain choices they still well and truly outperformed EVs.Additionally, 24.9 per cent of overall vehicles sold in August were EVs, meaning almost one in four. This is also a new record.While EVs had a sharp uptick in sales compared to August 2025, plug-in hybrids (PHEVs) had an even sharper growth. A total of 10,591 examples were sold during August 2026, which is up 171.1 per cent year-on-year.During the month of August, the best-selling EV by far was the Tesla Model Y. A total of 6414 examples were sold, which is up 176 per cent year-on-year.This was followed by the BYD Sealion 7 (2213, up 56.6 per cent YOY) and the Geely EX5 (1947, up 385.5 per cent YOY).The following is a breakdown of the top 10 best-selling EVs during the month of August: While EVs outsold petrol- and diesel-powered cars in August 2026, the year-to-date (YTD) sales figures paint a different picture.Until the end of August, a total of 154,304 EVs were sold, which is up 139.7 per cent year-on-year.For context, a total of 243,673 petrol vehicles and 207,541 diesel vehicles were sold over the same period, which is down 25.7 per cent and 16.2 per cent, respectively, year-on-year.If trends do continue we could expect to see EV sales overtake petrol or diesel around early-to-mid 2027. There are a lot of factors that may change this, but it’s clear that EV demand in Australia is higher than ever.

Two affordable EVs have learned their safety fate in Australia. The Geely EX2 and Leapmotor B05 electric hatchbacks have provided buyers with some new options in the budget-focused electric car space. They have now both been tested under the Australasian New Car Assessment Program’s (ANCAP) new 2026 protocols.  They are among the first to be tested using the revamped criteria that places a great focus on preventing accidents and safe driving. The B05 is Leapmotor’s newest and most affordable model put on sale in Australia, starting from $35,990 (drive-away). It achieved a five-star overall rating from ANCAP. ANCAP emphasised the hatchback’s strong crash avoidance performance, heaping praise on its lane departure warning and auto emergency braking systems.The watchdog said Leapmotor needed to improve in scenarios involving pedal misapplication and driveway runover risks. The B05 impressed with its crash protection, achieving a 92 per cent rating, with ANCAP highlighting a well-designed vehicle structure and restraints.ANCAP said the B05 demonstrated capability in the safe driving category, which evaluates driver assist features and hazard awareness, but it said there was room for improvement. The Geely EX2 has already proven to be one of the most popular EVs so far, with the compact hatch amassing nearly 500 registrations in August, having only gone on sale in late July. It is priced as one of the cheapest electric cars on sale, starting from just $26,490 (before on-road costs), putting it into competition with the BYD Atto 1 (from $23,990) and larger GAC Aion UT (from $31,990). The EX2 was awarded a five-star rating from ANCAP, with the watchdog praising its monitoring system that detects occupants wearing their seatbelts incorrectly. ANCAP also said its active safety software, including auto emergency braking and lane keep assist performed well, while it wasn’t so successful in some low-speed situations. The EX2 provided good protection in front and side impact collisions despite an elevated risk of driver leg injury in frontal offset testing. Pedestrian and other road user safety was impressive on the EX2, according to ANCAP, praising its small size and increased front crush space in the absence of an engine. ANCAP’s Chief Executive Officer Carla Hoorweg said these results demonstrate cheaper EVs shouldn’t mean they are less safe. “These results show that choosing a more affordable electric vehicle doesn’t have to mean compromising on safety, Ms Hoorweg said.”“The Leapmotor B05 and Geely EX2 have got the fundamentals right, delivering good crash protection, effective crash avoidance technology and important safety features as standard.“With more brands and models entering the Australian and New Zealand markets, safety is another area where manufacturers need to compete.”

Zeekr has announced monthly sales figures for August, announcing that it has more than doubled its global sales footprint year-on-year.Up a massive 100.4 per cent year-on-year, Zeekr reports it has delivered 251,000 vehicles, with monthly sales volume for August coming to 36,981 units.The growing luxury arm of Geely, Zeekr says it has now cumulatively sold nearly 900,000 units worldwide since its inception in 2021.This is an important milestone for Geely, as the higher pricing and margin of Zeekr vehicles is dragging up the brand’s average sale price in an environment where China’s automakers are seeking better profits after a bruising price war in the domestic market.The average sale price for a Zeekr vehicle is reportedly 370,000 RMB (A$77,090) and is an important factor in dragging the average sale price up for the entire Geely Group.Highlights for the year so far shared by Zeekr include over 200,000 global orders for the 7X mid-size SUV, and the Zeekr 9X large SUV becoming the best-selling SUV above the A$100,000 mark in China.In addition, the 009 people mover is now the best-selling luxury electric people mover in several markets, while the 7GT, soon to go on sale in Australia, is moving over 10,000 units a month globally.Zeekr has experienced explosive growth in Australia over the course of 2026, led primarily by its 7X, which until the end of July has clocked 7424 registrations. This has made it one of the best-selling electric cars in the country, ranking only behind more mainstream offerings like the BYD Sealion 7, Geely EX5 and Tesla Model Y.Zeekr will no doubt be expecting a bumper year in 2027, as well, as it adds the 7GT electric station wagon to the range as a new rival to the BYD Seal and Tesla Model 3 before the end of the year, with the 8X large SUV and 9X flagship, both as plug-in hybrids, also set to join the line-up in 2027.For Geely’s part, it has also experienced massive growth in Australia, moving over 14,000 units so far in 2026, despite only having a two-model range. The keenly-priced EX2 hatchback has just joined its range, with the Emgrand sedan and possibly the Monjaro upper mid-sizer set to join the range next year as hybrid options.The company has big global aspirations to double its export sales in 2027. Doing so in Australia would put the brand in the same stead as other Chinese success stories like BYD, Chery and GWM.But Geely’s Australian CEO Alex Gu told CarsGuide earlier this year that the company would continue its measured approach in Australia, despite its early success.“Success isn’t just the volume booming,” he said, “success is also customer satisfaction and dealer satisfaction.”“We’ve only launched two models and for example other brands have launched 10 models.“Of course, they have been in the marke longer, but even with two models you can see we only try to bring ‘star’ models into each segment.“From my perspective, 1000 a month is a milestone for a new model, especially in mainstream segments.”He said the company’s ultimate target was to be a global top-five player, and that in export markets like Australia the goal was to be “the number one Chinese brand.”From there it was a matter of challenging “the global top three.”Stay tuned for more on Zeekr’s new model roll out, as well as more on Geely’s plans for 2027.

Mazda’s next-generation CX-3 is confirmed for production as soon as 2027, and is an important part of the brand’s turn-around strategy.The CX-3 is part of a wide-ranging renewal strategy for Mazda which kicked off with the latest CX-5 and China-built 6e and CX-6e.It most recently appearing in a shadowy preview in a slide deck accompanying the brand’s latest (and somewhat dire) financial figures.Now, this shadowy preview has been brought to life thanks to YouTube channel AutoYa, which frequently posts renders of upcoming new models based on available imagery.It combines the shape of the shadowy preview with the design cues of the existing Vision X Compact concept shown in 2025 to preview the new small car family, as well as including elements of the CX-6e and new CX-5.The channel has also taken the liberty to imagine the interior as a shrunken down version of the new CX-5’s interior, albeit with a smaller set of screens.What we can tell you about the CX-3 is that it will be built in Thailand (like the current model), which is an advantage for the Australian market as it will be cheaper to build and ship here and will naturally be in built in right-hand drive.It will be the first new-generation CX-3 in 12 years after a long run of facelifts and model year updates for the still-popular crossover.It will also be an important model for Mazda as it fights off newer competition, including an upcoming next-generation Hyundai Kona, and aggressive new manufacturers from China like Jaecoo with its J5 and BYD with its Atto 2.As per the brand’s current new model strategy, it is expected the new small SUV will be available in both combustion and plugless hybrid forms. It is expected to use Mazda’s new in-house SkyActiv-Z technology, as opposed to using a Toyota-sourced system like the US-market CX-50.This system will debut on the CX-5, although the company has said it is not due in Australia until 2028.By then, the lack of electrification across Mazda’s range will be causing the brand significant issues with Australia’s new vehicle efficiency laws (NVES), which impose fines on automakers whose fleet CO2 emissions are above a certain threshold.Mazda is one of the most exposed manufacturers under the new rules. It is a big part of the reason the company has been so quick to the market with its Chinese joint-venture 6e and CX-6e, and plans to offer them with very competitive pricing.Meanwhile the company told CarsGuide in 2025 that its ‘small architecture cars’ like the Mazda 2 and CX-3 would be its next priority after its CX-5 plans come to fruition.The current Mazda 2 and CX-3 are slated to continue in Australia, at least until the new CX-3 debuts in 2027. The future of the related Mazda 2 remains uncertain, although the Vision X concept shown in 2025 at Tokyo was notably a hatchback, not an SUV.In other recent news from Mazda on the small car front, reports out of Japan claim the next-generation CX-30 is set to debut in 2030, 11 years after the current and original version launched.Little is known about the upcoming CX-30 replacement, other than it is also slated to adopt SkyActiv-Z hybrid tech, and that CEO Katsuhiro Moro said the car will adopt cost-saving measures first introduced in the CX-5 for the new model to keep it price competitive.

BYD is exporting its budget electric car formula globally. The brand has its sights on affordable EV markets in Europe and other markets, with technology from its Racco kei car forming the basis, according to a report in Nikkei Asia. The Racco launched in July 2026 as BYD’s first attempt to break into Japan's very popular kei car segment, and its already got strong early demand. Kei cars are common in Japan, representing an affordable and practical electric car option for compact roads with limited parking room. BYD is looking to adapt the Racco's efficient ‘X-Pack’ battery unit to tackle Europe’s new M1E mini-car segment in the next few years. The Chinese carmaker will avoid pricey development costs by adopting the Racco's technology for the new European segment.The X-Pack is made up of key electrical parts integrated into a single battery unit fitted under the car’s floor to make the unit more compact. The up to 36kWh Blade battery boasts a quoted driving range of 320km, making the Racco the first kei car with a driving range exceeding 300km. It also features 100kW fast charging, with an estimated 10 to 80 per cent charge time of roughly 20 minutes. This efficient and practical set-up makes it perfect for buyers seeking a cheap electric car for urban driving.The European Union’s ‘M1E’ electric car classification requires cars to be less than 4.2m long (compared to 3.4m with Japanese kei cars). Carmakers who build models under M1E could be eligible for subsidies, with the EU eager to combat imported competition with locally built cheap EVs.Chinese carmakers have been plagued in Europe by tariffs on imported vehicles, as the EU seeks to address alleged foreign government subsidies pricing out local brands. BYD is planning to open a manufacturing plant in Hungary before the end of the year, so building its new mini-car there could make sense.The BYD Racco was effectively ruled out for Australia by the brand’s executives, because it was solely built for the Japanese market. Kei cars usually don’t comply with Australian Design Rules (ADRs).The Racco would require extensive reengineering to achieve adequate side-impact crash protection and rectify other safety concerns.The Honda Super-One is sold in Australia, spawning out of the N-One kei car to become substantially longer, wider and taller than its sibling.It also incurs a noticeable price hike on its smaller Japanese-only inspiration, demonstrating the prohibitive nature of conversion for budget-focused manufacturers.  It is expected cars built under the M1E classification will be valid under ADRs here because Europe and Australia derive design rules from similar principles. This could open the door for a European-built BYD mini-car to hit Aussie showrooms in the future. It would need to be built in right-hand drive and satisfy the business case to be a sufficiently cheap competitor Down Under.