Small Cars

Close to 60,000 Mercedes-Benz cars sold new in Australia between 2018 and 2026 are the subject of a safety recall relating to a potential door lock failure that may result in unintended vehicle movement. The Federal Department of Infrastructure, Transport, Regional Development, Communication and the Arts has issued a safety recall notice impacting 58,822 Mercedes-Benz vehicles across a wide range of Mercedes-Benz and Mercedes-AMG models.It confirms examples of the A-Class, CLA, B-Class, C-Class, EQA, GLA, GLB and GLC  have been impacted and said, “Due to a manufacturing defect, the door-lock microswitch may be susceptible to water damage and could fail.“If this occurs, the door may not be detected as open, preventing the auto park feature from operating as intended,” the notice said. The department added, “A loss of (the) auto park feature may result in unintended vehicle movement. “This increases the risk of an accident, causing injury or death to vehicle occupants and other road users.”Multiple grades of the nominated models are included, and the department says drivers should always engage the Park position on the gear selector and apply the parking brake, as described in the Owner’s Manual, prior to leaving the vehicle.Owners of affected vehicles will be contacted by Mercedes-Benz in writing asking them to schedule an appointment with their preferred authorised dealer for the free of charge repair when parts become available.Alternatively, the Mercedes-Benz Customer Assistance Centre can be contacted on 1300 762 718 or via cs.aus@cac.mercedes-benz.com.

Small cars and light cars aren’t nearly as popular as they once were, but that could be changing thanks to the increasing accessibility of electric cars, said one new brand’s product boss.Geely's Director of Product Planning and Marketing Andrew Tuitahi said he sees “promising signs” for small and light car segments.While the sales figures aren’t proof at this stage, with EVs making people consider a smaller car than they might otherwise buy.“I can't say that it's saved, but there's definitely some promising signs,” Tuitahi told CarsGuide. “The unique thing that ‘new energy’, battery electric plug-in hybrids are doing is causing people to reconsider.”Tuitahi said the downsides once associated with light and small cars are more and more being addressed by new compact EVs, after earlier in the day having pointed out the healthy list of features in the Geely EX2.“So a lot of the compromises that you typically make if you were going to buy a b-segment or a light hatchback - things like drivetrain, power, performance, safety, style, you know, space - a lot of those things are solved with a battery electric platform. “So I think consumers are able to prioritise maybe some features by sacrificing a segment, but still getting that same space.”While the EX2 does cover much of the above, it should be pointed out its entry grade has a very modest 60kW output in the base Complete variant, or 80kW in the Inspire.Tuitahi added that along with the price and the overall size of the car, the range of a small EV is less a priority than it would be in larger EVs that are more likely to be used on long trips.“It really depends on the use case,” he said.“So we'd be encouraging our dealers to work with customers to help identify how they're going to be using their cars and whether or not they need that range. “You know… looking at the average kilometers traveled, certainly someone charging once a week would be within that range for an EX2. “Someone who can trickle charge every day is never going to be less than 70 or 80 per cent battery. So, it really comes down to use case.”

Two of Audi’s most affordable models are headed for the chopping block in Australia after production ended earlier this year.Audi Australia has confirmed there is only dealer stock remaining of the A1 hatchback and Q2 small SUV. Global production for both vehicles ceased in April 2026.“Once it's gone, it’s gone,” said Australia Australia Managing Director Jeff Mannering to CarsGuide.“There's still some in stock here in Australia, so just need to contact their local dealer because every dealer is in a different scenario,” added Audi Australia PR Manager Claudia Muller.The Audi A1 and Q2 were the German brand’s most affordable models in Australia.In the end only a single 40 TFSI S Line trim of the A1 is now available and it’s currently priced from $51,500, before on-road costs.Then with the Q2 an entry-level 35 TFSI is available from $49,400, before on-roads, as well as a Q2 35 TFSI S Line edition at $50,900, before on-road costs.Once remaining stock of the A1 and Q2 have been sold, the next most affordable Audi in Australia will be the A3 TFSI 100kW hatchback at $54,800, before on-road costs.The original Audi A1 was first revealed in production guise in 2008 and over its lifecycle there have been two generations. The second-generation launched locally in 2019.The A1 is based on the same Volkswagen Group MQB A0 platform as the current Volkswagen Polo.Then the Q2 was revealed in 2016 and launched locally in 2017. Although there have been numerous updates, only one generation of this small SUV has been offered.The Q2 is based on the same Volkswagen Group MQB A1 platform as the Skoda Karoq and outgoing Volkswagen T-Roc, among others.Both the A1 and Q2 formed as entry-level models to the Audi line-up both locally and globally. However, sales have declined over recent years and the German carmaker instead pivoted to other segments where there are more sales to be had.Although Audi is discontinuing two of its most affordable models in Australia, it’s gearing up to globally reveal the new A2 e-tron in November.This new electric hatchback will be the brand’s new entry-level model globally. At this stage there’s no word on whether it will come to Australia.It’s based on a version of the MEB+ platform that underpins the likes of the Volkswagen ID.Polo and ID. Cross, Skoda Epiq and Cupra Raval.Multiple versions of the A2 e-tron will be offered but, depending on the variant, total system outputs are up to 240kW/545Nm and WLTP-claimed range is up to 476km.

BYD has confirmed some seismic changes to its Atto 3 electric SUV ahead of its September arrival.The Chinese giant confirmed price and specification details for the updated Evo version of its pure-electric Atto 3 mid-size SUV, featuring revised design inside and out as well as a new top-spec powertrain option.As per the out-going model, which launched here in 2022, the upgraded Atto 3 Evo is offered in two grades - Dynamic and Premium.The entry-level model (previously badged Essential) is fitted with a 60.48kWh LFP (Lithium Iron Phosphate) battery and a single electric motor in the nose sending the same 150kW/310Nm to the front wheels. Claimed WLTP driving range is 420km.But the big change comes under the skin of the Premium flagship which rides on the Chinese maker’s new ‘e-Platform 3.0’ chassis, instantly upping system capacity from 400V to 800V.In a similarly seismic switch, a larger 74.88kWh LFP battery is onboard with a more powerful (230kW/380Nm) rear-mounted motor sending drive to the rear wheels. Claimed 0-100km/h acceleration time is a decidedly snappy 5.5 seconds.DC charging capability is also doubled to 220kW, lowering the Premium’s zero to 80 per cent charge time to 25 minutes while WLTP driving range increases to 510km.The Atto 3 Evo’s dimensions, including its wheelbase, are unchanged but design tweaks include revised bumpers front and rear, daytime running lights extending across the nose, slimmer side skirts and the brand’s signature ‘Chinese‑knot’ LED tail lights covering the width of the car. The high-mount roof spoiler has also been reprofiled and each grade is fitted with a specific 18-inch alloy wheel design.Interior changes include the move to a space-saving column-mounted gearshift, a new steering wheel design and a larger 8.8-inch driver information display (up from 5.0-inch).There’s also redesigned door panels, a new grey interior tone, multi‑colour ambient lighting, more heavily sculpted seats along with the addition of a sunglass holder, rain-sensing wipers and more powerful wireless phone charging (15W to 50W).Standard equipment on the Atto 3 Evo Essential includes:Six-way electrically adjustable driver’s seat Heated and ventilated front seatsEight-speaker audioWired & wireless Android Auto/Apple CarPlay V2L (Vehicle to Load) capabilityIntelligent voice assistant Remote vehicle functionsThe Atto 3 Evo 3 Evo Premium adds: Dual-zone climate controlDriver’s seat with four-way power lumbar adjustShifting to rear-motor/RWD in the Premium liberates an extra 56 litres of boot space (434L to 490L) and the absence of a front drive motor allows for a 101-litre frunk.Advanced Driver Assistance System (ADAS) tech now includes a new Child Presence Detection function with in‑cabin sensors identifying an occupant in the vehicle after it is locked and a Driver Monitoring System. The Premium picks up Front Cross Traffic Alert and Front Cross Traffic Brake.Colour options are the standard no-cost Ski White, with Harbour Grey and Cosmos Black adding $600 on both grades, the Premium adding Atlantis Grey to its palette.BYD Australia said the Atto 3 Evo is available to order now with deliveries scheduled to start in September. 

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

The Geely EX2 is already due for fresh competition in Australia. GAC has confirmed a cheaper variant of its Aion UT electric hatchback will be coming to Australia before the end of the year. The Aion UT launched in April 2026 as GAC’s affordable EV option, starting from $31,990, before on-road costs.It trailed cheaper rivals the BYD Dolphin ($29,990) and Geely EX2 ($26,490) on the sales charts in July.GAC has big ambitions in Australia, with a new base Aion UT expected to narrow the price gap on its closest competitors. The ‘short-range’ Aion UT will have a smaller 44kWh battery compared to the 60kWh unit found in the current grades on sale Down Under. It will offer a driving range of 320km, according to WLTP standards, compared to 430km available on its more expensive siblings. GAC has not revealed output figures for the car, but overseas variants have a front-mounted electric motor making 100kW/145Nm, down from 150kW/210Nm on current Aussie stock.  The cheaper Aion UT could also forgo some of the features on up-specs variants, but more details will be confirmed close to launch. The car has been officially earmarked for Aussie arrival in late Q4 2026, but CarsGuide understands it will launch specifically in December.There is no official news on how much GAC’s new Aion UT variant will cost, but the brand is eager for it to compete with the cheapest rivals on the market. We know it will be offered from less than the $31,990 price tag attached to car's current base grade.It starts in China from 102,000 yuan (or about $22,000), but models imported into Australia usually inherit a 20 per cent hike, so it is more likely to be priced from around $27,000-plus.

The new MG4 EV Urban offers an affordable entry point to electric car ownership but does it have the right mix of price, practicality and performance to be a standout for small car shoppers in the BEV market?

Where are you right now? Because that’s where you were when you found out that the price of EVs globally fell below those of hybrids in this historic first for the auto industry.According to a report from car industry analytics company Mobility Global which studied pricing automotive data from around the world the average price of electric vehicles has not only fallen dramatically but has now even dropped below that of hybrids.The report shows that the average global price of an electric car is $52,373, a decrease of nine per cent compared to 2020 EV prices. At the same time the global average price of hybrids increased to $55,204 making them more expensive than EV for the first time.Mobility Global cites the lower cost of EV batteries and the rapid expansion of affordable Chinese electric vehicles on offer as the main drivers of the price decrease.The price of lithium which goes into high-voltage EV batteries has dropped due to a surplus in China which controls about 80 per cent of the market. The cost of an EV’s battery accounts for about 40 percent of the car’s total build price. The lower lithium prices have caused the price of batteries to drop by an estimated 37 per cent since 2020.Australia has recently seen an enormous uptake of EVs. June and July this year saw EV sales break records, securing more than 20 per cent of the market in both months.  While prices have fallen vastly in Australia CarsGuide calculated the average price of EVs is still slightly above those of hybrids locally. Using pricing data from August, 2026 CarsGuide calculated the average price of battery electric vehicles to be approximately $100,135, down from approximately $104,091 in August, 2025. We also calculated the average price of hybrids (including plug-in hybrids) in August, 2026 - approximately $93,767, that’s down from approximately $98,682 in August, 2025.Sounds high? Well, as a reference point CarsGuide also found that the average price of petrol cars in Australia is approximately $90,545.All figures were calculated by dividing the sum total of prices for each category (BEV, hybrid, petrol) by the number of models (including the variants) within the category. That means even the super high end models are counted along with the very cheapest.Still, the price of EVs in Australia has never been so low. The BYD Atto 1 is the most affordable electric car in Australia at a list price of $23,990 for the Essential grade. This is followed by the Geely EX2 Complete for $26,490, the BYD Dolphin Essential at $29,990 and BYD Atto 2 for $31,990.  

The soon-to-arrive BMW iX3 40 eDrive will open the new iX3 range, sitting well below the iX3 50 xDrive in terms of price, but not in terms of equipment, with both models sharing the same features list.BMW has secured Luxury Car Tax-busting pricing for the 40, starting at $89,900, before on-road costs. For that, you get a single motor for rear-wheel drive and a smaller battery than in the twin-motor 50 xDrive.The iX3 40's battery is 82.6kWh and the range promise is a still-considerable 635km, while its rear motor delivers 235kW and 500Nm – enough for a sprint to 100km/h in a brisk 5.9 seconds.

Geely has powered up the sales chart in July, making the top 10 best-selling brands for the month.The Chinese brand launched in Australia in March 2025, and has approached the local market with a more methodical approach than its competitors. It has only introduced three models so far, contrasting BYD that already has more than 10 models on sale since its distribution takeover in July 2025.Despite this relatively small footprint, Geely captured 3.6 per cent of total new car sales in July.Geely has grown by more than 500 per cent in the first seven months of the year, compared to the same period in 2025.  Geely's success has largely been driven by the EX5 electric mid-size SUV that managed 2034 registrations last month - its best month yet. The Toyota RAV4-sized EX5 is Geely’s best-selling car on sale in Australia, with nearly 9000 sales so far this year.Starting from $41,990 (before on-road costs), it continues to outsell the smaller BYD Atto 3 ($39,990) and eat into the sales of petrol rivals such as the Mazda CX-5 ($39,990).There are limited other fully-electric rivals with similar dimensions to the EX5, potentially giving it an edge in showrooms. It’s not just the EX5 selling well for Geely, with its smaller EX2 sibling registering 474 examples in its first few weeks on sale.The brand only introduced its new hatch with a sharp $26,490 price tag in late July, making it one of the cheapest electric cars on the market. The EX2, which is the most popular car in China, even managed to shift more units than the BYD Dolphin ($29,990) in July.The Starray Em-i plug-in hybrid mid-size SUV is Geely’s other model on sale in Australia, also enjoying a strong sales return, with 1177 units finding new homes last month.It poses as a direct threat to the BYD Sealion 6 ($42,990) and the recently-launched Toyota RAV4 plug-in hybrid ($59,515), but is noticeably cheaper at $37,490. Geely will continue to introduce new models at its own pace, with potential for some activity before the end of the year.  The brand is expected to launch a mid-size and a large SUV in the first half of 2027, followed by the Emgrand plug-in hybrid sedan later on in the year. The Galaxy Cruiser large rugged 4WD is also expected to land Down Under before the end of next year.