Small Cars
Special budget small SUV arrives
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By Laura Berry · 30 Jul 2026
Mahindra has expanded its XUV 3XO range in Australia with the introduction of the limited run Black Anniversary edition to celebrate the small SUV being on sale locally for a year.The special edition joins the existing AX5L and AX7L variants and adds exclusive black styling while retaining the same equipment as the top-of-the-range AX7L.Limited to 300 units and with a driveaway price of $27,990 the Anniversary Edition now sits at the top of the 3XO line-up, priced from $27,990 drive-away. All variants of the 3XO are powered by the same 1.2-litre turbo-petrol engine producing 82kW/200Nm driving the front-wheels via a six-speed automatic transmission.This combination consumes 6.5L/100km on the combined cycle.AX5L grade:16-inch alloy wheelsLED headlights and LED daytime running lights10.25-inch digital instrument cluster10.25-inch media touch screenWireless apple carplayWireless Android AutoDual-zone climate controlSix-speaker stereoSurround view cameraBlack cloth seatsPush-button start AX7L grade in addition to the AX5L’s features:17-inch alloy wheelsHarman Kardon seven-speaker stereoPanoramic glass roofLeatherette upholsteryLED front fog lampsCooled glove box Black Anniversary Edition grade in addition to the AX7L’s features:Gloss black 17-inch alloy wheels Black exterior finishMatte gray roofBody coloured grilleDark wheel centre capsBlack badgingAluminium scuff platesRear luggage trayOptional Stealth Black paint: $490 The Mahindra XUV 3X0 maintains the usual array of active safety equipment like auto emergency braking, blind spot monitoring, adaptive cruise control, lane keep assist, as well as traffic sign recognition, a 360-degree camera, and an array of six airbags.Mahindra covers the XUV 3XO with: a seven-year/150,000km warranty; seven years of roadside assistance; and six-years of capped price servicing which comes to a total of $1994.
Sub-$20,000 car returns, with a catch
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By Dom Tripolone · 29 Jul 2026
The days of the sub-$20,000 small car were thought to be long gone … but they’re back for a limited time only.MG has slashed the price of its MG3 small hatchback, with it now starting at $19,990 drive-away for the MG3 Vibe with a CVT automatic transmission.The MG3 joins the smaller and manual gearboxed Kia Picanto in the sub-$20,000 price range for now.It also is significantly cheaper than the entry point for the similar-sized Mazda 2 ($27,290 before on-road costs), Suzuki Swift ($24,490 drive-away) and Toyota Yaris Hybrid ($29,190 before on-road costs).This is a return to a popular price point at the turn of the decade, with Hyundai successfully pushing its i30 hatchback for that price years ago.Since then inflation, increased safety tech and the disappearance of the manual transmission makes the MG's price even more impressive.The limited time offer ends at the end of the month, but car brands often extend popular deals to boost sales during tough market conditions.The MG3 Vibe is powered by a 1.5-litre petrol engine that makes 81kW and 142Nm, which is paired to a CVT auto driving the front wheels.MG claims it drinks 6.0-litres per 100km, and it also runs on regular unleaded for further cost savings.It comes with a 10.25-inch multimedia screen with wireless Apple CarPlay and Android Auto, which is paired with a seven-inch driver’s screen.It wears 15-inch steel wheels, has halogen lights and cloth seats to help keep the cost down.It is fitted with plenty of safety tech as standard and it has a reversing camera.MG also backs its vehicles with a 10 year/250,000km conditional warranty, with owners required to only service their vehicles at an MG dealership or it reverts to a seven year/unlimited km guarantee.Chinese brands are rapidly filling the entry-level segment exited by the Korean and Japanese car brands several years ago.BYD’s little Atto 1 is the cheapest electric car in the nation, starting at $23,990 (before on-road costs).Chery has found success with its Tiggo 4 small SUV starting from $23,990 drive-away, and the slightly more plush — but mechanically related — Jaecoo J5.MG is getting aggressive with its discounts as it tries to reverse its sales slump for the past few years. Nearly every model in its line-up has some sort of offer applied to it.It appears to be working. Sales for the Chinese brand are up about seven per cent for the year with the MG S5 and MG4 Urban EVs leading the charge. Its core range, including the MG3 hatchback and MG ZS small SUV, continues to struggle. This points to more discounts in the near future.
Potential sub-$25K EV a step closer to Oz
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By Tim Gibson · 28 Jul 2026
Aussie buyers could soon get their hands on a cheap new EV.The Chery QQ3 is a budget-focused electric hatchback that would rival the BYD Atto 1 for the title of the cheapest electric car on sale Down Under. It is substantially bigger than the Atto 1, and closer in size to the BYD Dolphin and incoming Geely EX2.The China-built hatch is about to hit Indonesian showrooms in right-hand drive as a potential final stepping-stone before landing in Australia.It is currently under review for Australia, but it seems to be only a matter of time before Chery confirms its arrival. Chery Australia’s Chief Operating officer told CarsGuide at the start of this year the brand was keen on introducing a car from the QQ series.“I think having a very small and then a small hatchback would be a game changer,” Harris said.“So if we could bring something like the QQ, I think it’d be a huge amount of opportunity.”Here is what we know so far about the QQ3 as it pushes towards an Australian launch. The QQ3 is available in China in rear-wheel drive, with a single electric motor producing either 58kW/90Nm or 90kW/115Nm.It is offered with 29kWh and 41kWh battery units, and a driving range of up to 420km, according to lenient CLTC standards.The Indonesian model has a driving range of 400km, according to the more reliable, but still outdated, NEDC cycle that is still not reflective of real-world figures. DC charging from 30 to 80 per cent takes less than 17 minutes. The QQ3 features similar elements to the petrol-powered first-generation QQ city car.It is substantially bigger than the first generation, measuring up at 4195mm long, 1811mm wide, 1568mm tall, with a wheelbase of 2700mm.It has a bubble-like overall design, with a rounded headlights and side mirrors.There is a crossed-over ‘X’ wheel design, with two vertical strips, contrasting a spoked alloy set-up. The interior has a 15.6-inch central touchscreen and 8.8-inch digital driver display, along with a six-speaker audio system. It also boasts plenty of storage space for a small car, including up to 1450L of boot space and a 70L front storage compartment.The QQ3 is pitched as a budget electric car, so it will have to be competitive with the BYD Atto 1 starting from $23,990, before on-road costs.It is priced in Indonesia from 200,000,000 rupiah, which is roughly $16,000. It costs 68,920 yuan ($14,500) in China, so it could potentially be offered from less than $25,000 in Australia. The QQ3 has still not been officially confirmed for Australia, but its right-hand drive status accelerates its path here. The car also underwent hot-weather testing in Australia at the start of 2026.It is unlikely we will see the car Down Under this year, with 2027 a more likely prospect.
Eye-popping new 4WD confirmed
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By Laura Berry · 28 Jul 2026
Mercedes-Benz has given the first glimpse of the upcoming G-Class Cabriolet with its roof folded down, hinting the convertible luxury off-roader’s arrival is imminent.In December last year Mercedes-Benz announced that it would be bringing its G-Class Cabriolet back after the previous version had been discontinued in 2013. The images that were released officially at the time were of a camouflage Cabriolet model with the folding roof in place. Now Mercedes-Benz has released a series of teasers on its social media accounts showing the G-Class Cabriolet folding down its roof automatically.Although nothing is really left to the imagination Mercedes-Benz has persisted with using camouflage around the rear of the G-Class Cabriolet.It is clear the roof folds automatically and quickly, although not quite as compactly as some might have hoped. Rather than storing itself away neatly behind the rear seats, the folded roof sits as high as the top of the spare wheel cover mounted on the tailgate.Mercedes-Benz has not announced when the G-Class Cabriolet will make its global debut, but it is expected to arrive before the end of this year.CarsGuide has reached out to Mercedes-Benz’s local arm asking for confirmation of the Cabriolet’s arrival and the launch timing Down Under, but the company is yet to respond.The signs are positive for an Australian arrival with Mercedes-Benz CEO Ola Kallenius saying at the 2025 Munich motor show that the new Cabriolet will be “sold in almost every market around the world”.Details are scarce, but the model in the teaser video appears to be the top-of-the-range twin-turbo V8-powered G63. Buyers of a Cabriolet version can expect to pay a premium over the current hard-top G63, which starts at $368,400 (before on-road costs). The cabriolet body style may only be available in the range-topping G63 specification and if it does come to Australia it will join the line-up, which starts with the diesel powered G 450d before stepping up to the fully electric G 580.Mercedes-Benz introduced a Cabriolet version of its short wheelbase two-door G-Class in 1979 with production running until 2013. Mercedes-Benz says the reason for the two-door Cabriolet G-Class’s axing was due to low demand and increasing safety requirements.A four-door version was continued to be made but only available in the exotic Mercedes-Maybach G650 Landaulet specification. This was also discontinued in 2018.
Used Honda City review: 2014-2020 | Toyota Yaris rival tested
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By David Morley · 25 Jul 2026
Although it was never a huge seller, the GM2 (Honda’s in-house code) Honda City four-door sedan was eventually replaced by the GM6 model, and with that update came a bigger car in pretty much every direction, further differentiating the City from the more popular Honda Jazz hatchback.The GM6 City was both longer and taller than the car it replaced and, crucially, there was an extra 50mm in the wheelbase, giving both a larger cabin and more boot space. Clearly, Honda had worked out that City buyers were a pragmatic bunch.Mechanically, not much had changed, though, and the 1.5-litre four-cylinder engine with its fairly meagre 88kW remained the only choice. You could still get a five-speed manual, but only in the entry-level version, and just about everybody who bought a City brand new specified the continuously variable transmission (CVT) anyway.Trim levels were also unchanged with the VTi the base version and the VTi-L for those who had a bit more to spend. The VTi-L step-up got you paddle shifters for the CVT (an affectation, to be sure) a leather-clad steering wheel, better stereo and 16-inch alloy wheels. Curiously, the VTi had simple, steel wheels of 15 inches.Generally, yes. Even though the City is built in Thailand and not Honda’s home-base of Japan, quality seems pretty good. You also get Honda’s engineering flair in the case of the zingy little engine with its variable valve timing and great fuel economy. But that doesn’t mean the City will appeal to keener drivers out there; the suspension is too soft and the steering too slow for that.If you don’t need the arguably more versatile packaging of a hatchback, then the City’s roomy interior and boot makes plenty of sense.Just bear in mind that `good’ doesn’t mean sexy.But in this case it does mean safe and the City scored the maximum five stars for safety in local independent testing.Like the vast majority of Hondas built anywhere in the world, the City seems to be pretty robust and able to go the distance. That, however, is on the proviso that it’s been maintained, but that goes for any make and model.Overall, instances of major failures and owner complaints are few and far between.Probably the most common problem exhibited by the Honda City is a CVT that shudders on take-off or slips or jerks when the driver applies a load to the driveline. The good news is that, unlike many CVTs from other makers, the Honda’s unit is a lot stronger (possibly due to the fact that Honda makes its own CVT to its own standards) and problems like these are often fixed with a change of transmission fluid to replace the old, dirty fluid.The exception is the model year 2014 City, a batch of which was fitted with an incorrect shaft within the transmission. Under high loads, this shaft could sheer off, leaving the vehicle with either no drive at all, or locked front wheels. A Honda dealer can check the VIN of a particular City and know whether it was affected by this.Most experts reckon the CVT fluid should be changed every 50,000km to keep everything running smoothly and reduce wear to a minimum.The exception to this good track record will be the City that has been neglected in regards to its routine maintenance. The complex little engine uses a maze of tiny oilways to power its variable valve timing and lift function (which gives the engine its sparkle). But if regular servicing has been missed, these oilways can soon fill up with sludge and dirt, at which point the engine can’t perform properly.The City also uses a timing chain, so that component should last the life of the car and not need periodic replacement like a toothed rubber belt in many other makes and models.The City GM6 was recalled twice, the first for that CVT with the dodgy internal shaft that could fail at any time. The other recall was for a batch of cars built across 2019 and 2020, in which the electric fuel pump could suddenly die, leaving you stranded wherever that failure occurred.You can search for more recall data at: https://www.vehiclerecalls.gov.au/That 2014 batch of Citys with the iffy shaft in their CVT are the ones to avoid now. Although if the car has been fixed as part of the associated safety recall, then the modified City should be just as robust as any other City. But if the City you’re looking at is a manual-transmission car, disregard the above as it was only the CVT that was affected.Beyond that, buy on condition and service history rather than build date.The majority of Citys have never strayed too far from the, er, city. Nor have they been embraced by couriers and Uber drivers, so you don’t see too many with a lot of kilometres on board.That said, there’s absolutely no reason to think that a well-serviced City won’t push through the 200,000km mark with lots of life left in it. In any case, a high percentage of Citys for sale right now have less than 100,000km on their odometers, suggesting lots of reliable motoring still to be had.We’d often advise against the version of any car with a CVT, but the Honda’s in-house CVT seems a lot better than most of the rest out there. So there’s no problem with a City with two pedals if that makes life easier. It will certainly make the car a lot easier to unload come trade-in time, too.And since the price difference between the VTi and the ritzier VTi-L version is a lot less now than when the car was brand new, there seems little reason not to opt for the more luxurious latter variant as a second-hand buy.Prices for early GM6 Citys start at around the $9000 or $10,000 mark, but they’ll nearly always be high-mileage cars (say, 160,000km or more, if that bothers you).Prices top out at closer to mid-to-high teens and for that, you’ll be buying a low-kilometre car in excellent condition. Just don’t forget to check the service history.Even though the City was not a huge seller here, parts and servicing are no problem. You can tap into the Honda dealer network and pay a little more, but the popularity of the Honda brand means there’s a huge aftermarket and enthusiast scene for the brand.Global popularity for Honda products generally means there’s also a healthy online marketplace for sourcing spare parts, service items and accessories.The City sales story is one of steadily falling volumes as the years have passed. Although the car sold a few thousand units in its first year or two of sales, buy the end of 2019, that figure had fallen to just over 600 sales for the year.That’s not a judgment on the Honda, but the reality of the small sedan market in this country as we shifted to hatchbacks and, notably, SUVs.
Why do my 2016 Holden Barina brakes grab under acceleration?
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By David Morley · 24 Jul 2026
Why do the brakes in my 2016 Holden Barina grab badly when first taking off?
Ford and Geely join forces
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By Jack Quick · 24 Jul 2026
China’s Geely has signed a joint venture with Ford to begin shared production at the American carmaker’s production facility in Spain.The Chinese carmaker has conditionally agreed to acquire a 34 per cent stake in Ford’s Almussafes production plant near Valencia, Spain for €221 million (~A$360 million), per a filing with the Hong Kong Exchange.This newly established joint venture will begin in the first half of 2027, pending regulatory approvals, and allow for renovations to boost annual production capacity to 500,000 vehicles.As it currently stands, this Spanish production facility only produces the Ford Kuga, which was previously offered in Australia as the Escape. Production of this mid-size SUV will continue.Beyond this, Ford has confirmed it will produce a new, European-focused “member of the global Bronco family” at the Spanish production facility in 2028.Little details are known about this new European-focused Bronco model, but previous reports have indicated it will be smaller than the full-sized model and potentially offer both electric and hybrid options.Geely also plans to begin production of two electric SUVs at the Spanish production facility in 2028.At this stage it’s unclear what these models will be as the only electric SUV the Chinese carmaker currently offers in Europe is the E5, which is called the EX5 in Australia.Lastly, a new “multi-energy family crossover” designed by Ford and jointly developed with Geely will launch in 2028.No details about this vehicle have been announced yet, but Ford says it will be engineered with its “signature capabilities and driving dynamics”.Geely over the past few years has been scaling its operations in markets outside of China, including in Australia. In the first half of 2026 it sold a total of 474,228 vehicles in overseas markets, which is up 158 per cent year-on-year.In Australia the Chinese carmarker sold a total of 10,970 vehicles in the first half of 2026, which is up 494.6 per cent year-on-year. It is now the 18th best-selling brand Down Under.Geely is far from the only Chinese carmaker that has been acquiring unused production capacity from legacy carmakers.Chery recently signed a non-binding agreement with Nissan to explore contract manufacturing at the Japanese carmaker’s production facility in Sunderland, UK.Stellantis, which owns brands like Alfa Romeo, Fiat and Ram, among others, decided earlier this year to share its manufacturing plants in Spain and France with its Chinese partners Leapmotor and Dongfend, respectively.
Nissan’s forbidden EV priced
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By Tim Gibson · 23 Jul 2026
Nissan has revealed a sharp price for its newest performance-tuned electric car.The Leaf Nismo just hit Japanese showrooms as a performance grade of the strong-selling Leaf small electric car.Nissan relaunched the Leaf in January as an SUV, marking a shift from its two previous hatchback generations.Nismo is Nissan’s performance arm tasked will adding sporty credentials to its cars.The Leaf Nismo shapes up as a size-up rival to the MG4 XPower hatch.It carries 6.6 million yen (or roughly $60,000) price tag in Japan, which is about a 33 per cent hike on the standard Leaf.While the Leaf Nismo has the same 160kW/355Nm single electric motor front-wheel drive set-up as up-spec Leaf variants, it receives plenty of other technical improvements.Its rethought suspension system introduces new springs, stabilises and select member bushes to provide greater rigidity and improved steering response.The car has beefed up shock absorbers to reduce body roll during hard cornering in conjunction with a specialist-tuned chassis.It rides on 19-inch alloy wheels, fitted with special Michelin tyres, aiding grip and control. The Leaf Nismo sits on the larger end of the small SUV scale, measuring up at 4415mm long, 1810mm wide, 1550mm tall, with a wheelbase of 2690mm.It weighs just under 2000kg.It also has up to 135mm of ground clearance. The Leaf Nismo’s is equipped with either a 52kWh or 75kWh battery, offering a driving range of more than 500km, according to WLTP standards.The new-generation Leaf is not currently in Nissan Australia's plans.The brand postponed its introduction after it failed to meet the business case.This means it is unlikely we will see the Leaf Nismo in Australia any time soon.However, with EVs forming more important parts of brands’ lineups, it is not entirely out of the question for a future launch.If it arrives in Australia it will likely be a touch pricier than the $60,000 equivalent Japanese starting point, coming in more expensive than the MG4 XPower.
Bad news for new Toyota hybrid rivals
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By Dom Tripolone · 23 Jul 2026
If you can’t beat them, join them. Volkswagen has long resisted the urge to add conventional, Toyota-style hybrid power to its cars, but not anymore.The German maker is rapidly expanding its petrol-electric range, diversifying from the petrol, plug-in hybrid and fully-electric options currently available.Now it has revealed European prices for the VW Golf hatchback and T-Roc SUV hybrids, which would rival the popular Toyota Corolla and Corolla Cross.Prices start at €41,400 ($67,000) for the Golf and €44,470 ($72,000) for the T-Roc. Both models are only available in the top-spec R-Line specification, and represent about a €4000 ($6500) premium over the petrol models.Petrol R-Line versions cost about $50,000 before on-road costs in Australia, so a hybrid version could cost about $60,000 on the road in Australia. That would put it about $20,000 more than the cheapest equivalent Toyota hybrids.Volkswagen Australia has previously been unable to confirm if the hybrid Golf and T-Roc will arrive in Australia, but the company said it is always evaluating opportunities for our market.The hybrid Golf and T-Roc combine a tried-and-tested 1.5-litre turbocharged petrol engine, two electric motors and a 1.6kWh battery.VW claims this set-up produces 125kW/309Nm, a jump of 15kW/59kW over the petrol Golf’s 110kW/250Nm max outputs.It also uses about 4.6-litres per 100km of fuel, which is slightly more than Toyota's claim.Hybrid options are becoming increasingly important to brands in Australia as purely petrol powered vehicles are starting to fall foul of Australia’s New Vehicle Efficiency Standard (NVES).The NVES levels fines against carmakers for every gram of CO2 a sold vehicle emits over a certain threshold. This threshold gets lower every year until 2030.The fines can be offset by sales of EVs and plug-in hybrids.Purely petrol cars will soon become prohibitively expensive, with hybrids also attracting moderate fines in the coming years.The NVES is also putting Australia at the front of the queue for international brands to get low emissions or electric vehicles.Volkswagen Australia for years struggled to get its electric cars sold in Europe and other parts of the world, as our market wasn’t considered an emissions critical one that needed these vehicles. This is no longer the case.All this works in favour of Volkswagen bringing its latest hybrid, plug-in hybrid and electric vehicles here.
Iconic brand stops importing cars
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By Dom Tripolone · 21 Jul 2026
Another carmaker has stepped back to pause and consider what its future in Australia looks like.Fiat has announced it has stopped importing passenger vehicles into Australia, as it assess what its future line-up may look like.It wasn’t an extensive model range, with the Italian marque only selling the electric Fiat 500e and its sporty twin, the Abarth 500e.The company will continue to import and sell its range of commercial vehicles.It is understood this isn't the end for Fiat cars in Australia, but a break to work out the models in its line-up that would best suit.“As part of Stellantis Australia's ongoing portfolio and product planning process, the availability of specific models can vary over time as we assess market demand and future product opportunities. We remain focused on ensuring the vehicles we bring to Australia meet customers’ expectations,” said a company spokesperson. “Following Stellantis' recent confirmation of Fiat as one of its core global brands, we are excited by the opportunities the brand presents for the future. “Fiat 500e and Abarth 500e stock in Australia has now largely been sold through and, at this stage, we are not planning additional orders while we evaluate future product opportunities for the local market. “We continue to support our Fiat and Abarth customers and dealer network and look forward to sharing more information about Fiat's and Abarth’s future plans in Australia at the appropriate time.”Fiat has only sold 144 vehicles through the first six months of this year in Australia, which is down 30 per cent compared to the same period last year.Its range of commercial vehicles is faring better, and sold 139 in June alone.Fiat has an expanding range of SUVs overseas, including the Grande Panda and Grizzly. These models are both electrified and better suited to Australian tastes.Peugeot, which is also owned by Stellantis, also closed up shop in Australia earlier this month.The French brand’s local distributor, Inchcape, handed back the keys to its selling rights and there is no immediate taker to pick up where they left off.The writing was on the wall for Peugeot after a string of tough years that culminated in 373 sales through the first five months of this year, which was down 35 per cent compared to the same period last year.This follows a circa-29 per cent drop in 2025, and losing a quarter of sales in 2024.