Small Cars

The hatchback is making a comeback courtesy of China, with one newcomer brand reporting pre-orders of its warmed-over electric hatch far outstripping those of the SUVs in its lineup.That brand is Leapmotor, which is poised to launch the B05 in Australia before the end of the year, with the warm electric hatch likely (though not yet confirmed) to be followed by a more bonkers Ultra version that will take all-electric aim at models like the Volkswagen Golf GTI and Hyundai i30 N.Leapmotor sells two other SUVs in Australia, the C10 and B10, both offered with full electric and REEV petrol-electric powertrains. But demand for the electric-only B05 is so far outstripping both."The B05 has delivered our strongest customer response to date across the brand – reinforcing the growing appeal of the Leapmotor," a company spokesperson told CarsGuide.The company won't be drawn on exact order numbers, but the B10 SUV is the brand's strongest performing vehicle so far this year, delivering 511 units, so it would be safe to assume that, if demand keeps up following the B05's actual launch, the hatchback will achieve bigger numbers.The B05 starts from $35,990 drive-away, and is fairly unique in terms of Chinese launches in Australia, in that Aus-delivered cars have had their chassis and suspension tuned by Alfa Romeo in Italy – Stellantis co-owns Leapmotor – which promises a more cohesive, sportier ride."We have, after some assessments done in November, lowered the hook point of the suspension arms on the rear, and lowered the centre of gravity, and the car has totally changed behaviour. So if you drive a BO5 in Europe versus BO5 for China, it’s totally different," the brand has previously told CarsGuide.It will be joined by other newcomer hatchbacks in Australia, like the Geely EX2, BYD Dolphin, Aion UT and the GWM Ora, as Chinese brands flood into a market segment abandoned by some mainstream players.

You may or may not know Australia was the first export market for the world’s best ever selling car.The vehicle in question is the Toyota Corolla and this was the first country to receive exports when 15 examples of the first-gen E10 model were shipped here in November 1966, just a month after it was revealed in Japan.During the 1966 Tokyo Motor Show (October 26 to November 8) Toyota had pulled the covers off the diminutive two-door, 1.1-litre city car which over the next six decades and 12 generations would go on to comprehensively out-sell automotive icons like the Ford Model T, VW Beetle and original Mini.So, yep, the Corolla turns the big six-oh this year and Australia was a VIP guest at its first party.Less than a year after the original E10 series debuted, a four-door sedan and wagon type van joined the initial line-up and the Corolla die was cast, the newcomer quickly building its reputation as an affordable, versatile and economical small car, initially going into bat against the similarly-sized, not to mention similar-looking, Datsun (Datto) 1000 and Subaru 1000.Another Aussie milestone for Corolla was assembly of the E10 in Port Melbourne, the first manufacturing site for the model outside Japan. Toyota Australia went on to build more than 666,000 Corollas across its Port Melbourne, Dandenong and Altona plants.    Only four years later, in 1970, the chubbier E20 Corolla was introduced, retaining the original’s front-engine, rear-wheel drive configuration but with more capacity, power and weight.The alpha-numeric model code convention continued in 1975 with the E30 / E50 ‘rolla, still rear-drive with later versions powered by a 1.3-litre four and the choice of manual shift or ‘ToyoGlide’ three-speed auto. The third-gen E40 / E60 Sprinter variants were JDM (Japanese Domestic Market) and (other) selected export markets only. A more mature E70 Corolla arrived in 1981 with a new coil-spring, five-link rear suspension, but still rear-wheel drive, with a relatively conservative appearance. A clear ‘white goods’ Toyota period.The E80 kicked off the front-wheel drive Corolla era in 1985 and the ground-breaking E90 became a hugely popular small car option in Australia from 1989, bringing more contemporary looks and the availability of 16-valve, twin-cam engines (anyone remember ‘The O2 Advantage’ slogan?), especially the high-performance ‘4A-GE’.The E100 from 1994 looked more like a substantial E90 upgrade than a new-generation model but the E110 in 1998 was a clear design departure with a distinctive quad headlight face morphing into a wide-eyed, dual-headlight expression following a facelift.In 2001, the now imported E120 ushered in a sturdier, high-waisted look for the ninth-generation, with sedans, wagons and hatchbacks available. The E140/E150 continued that design theme from 2006 to the E170 sedan and E180 hatch launched here in 2014.The Corolla reached a million Australian sales, in September 2007. And for completists, the E160 (Corolla Axio sedan and Fielder wagon) was never officially sold in Australia. Which brings us to the current 12-generation E210. Launched in 2018 it’s the longest-running Corolla model and has proved a huge success.It’s brought back hot hatch performance with GR and soon-to-arrive GRMN variants and looks set to soldier on until the 13th-generation Corolla arrives later this year, with (surprise, surprise) late October a short odds favourite for launch timing. Speaking of hot hatches, in terms of motorsport the Corolla has done everything from Bathurst (its first success was a Class A victory in 1968) to the World Rally Championship as well as multiple Australian Rally Championships (at the hands of Neal Bates and Coral Taylor) and a multitude of other competition appearances around the globe.It’s recently spawned the Corolla Cross SUV as well as a host of other variants throughout its life (AE86 anyone?). And the Corolla shows no sign of slowing down with efficient hybrid powertrains keeping it relevant with sales numbers continuing to tick over locally.Last year, 18,968 new Corollas found homes in Australia, and with another 6277 sold to the end of May this year it remains the country’s best-selling small car by a comfortable margin.   Toyota has all but confirmed the next-gen Corolla will be available with hybrid, plug-in hybrid, pure electric and possibly hydrogen fuel cell powertrain options.Speaking at the showing of a Corolla Concept at last year’s Japan Mobility Show, Toyota President & CEO Koji Sato said despite the new powertrain options, the Corolla must remain a car for “everyone”. “Whether it's a battery EV, plug-in hybrid, hybrid, or internal combustion engine vehicle - whatever the power source - let's make good-looking cars that everyone will want to drive,” Sato-san said. Hear, hear to that. But facing more challenges than ever before in its 60 years, the 13th-generation Toyota Corolla will possibly be the most important for the world’s biggest carmaker. Bring on the birthday party.

Volkswagen has revealed a new electric counterpart to the T-Cross small SUV.The 2027 Volkswagen ID.Cross is based on the MEB+ dedicated electric platform like the ID.Polo, Cupra Raval and Skoda Epiq.While this new electric SUV can be ordered already in Germany, it’s unclear if or when it will be coming to Australia.“The Volkswagen ID.Cross is currently being assessed for the Australian market as part of our ongoing product planning activities,” said a Volkswagen Australia spokesperson.“While we recognise the interest in the vehicle, we are unable to confirm local availability or timing at this stage.”All versions of the ID.Cross are powered by a single, front-mounted electric motor but there are three different power tunes. These are 85kW, 99kW and 155kW.There are also two battery packs available, 37kWh and 52kWh. The latter offers up to 427km of WLTP-claimed range.Both battery packs can be AC charged at rates up to 11kW, but the 37kWh battery can be DC fast-charged at rates up to 90kW and the 52kWh battery can be DC fast-charged at rates up to 105kW. This allows for a 10 to 80 per cent charge in 23 and 24 minutes, respectively.Vehicle-to-load (V2L) capability is available as standard across the line-up at rates up to 3.6kW. It’s available with the use of an adaptor that plugs into the external charge port.On the outside the ID.Cross’ design language is cohesive with the ID.Polo. There are available matrix LED headlights, a rear LED light bar with 3D elements, illuminated VW logos, as well as black-painted pillars to create the illusion of a floating roof.It measures in at 4153mm long, 1794mm wide and 1581mm tall, with a 2601mm wheelbase. This makes it 45mm longer, 34mm wider and 2mm shorter than the T-Cross. The wheelbase is also 38mm longer.Inside there is a 10.25-inch digital instrument cluster that, like the ID.Polo, offers a view mode that emulates the first-generation Golf’s gauges, as well as a 12.9-inch touchscreen multimedia system.There’s also a panoramic glass sunroof with an electric sunblind, fabric-covered dash panel, piano-key shortcut buttons under the touchscreen, an available 10-speaker Harman Kardon sound system, heated seats and steering wheel, as well as keyless entry and start.There are a total of five seats, 475 litres of boot space with rear seats upright, as well as a 25-litre frunk.With the reveal of this ID.Cross, it’s unclear what this means for the combustion-powered T-Cross which was originally revealed in 2018 and launched locally in 2019. It was last updated in 2024.

Tesla is trying to provide better value for Model Y and Model 3 drivers in Australia.The brand has introduced guaranteed future value loans for new cars.This allows prospective buyers to lock in a guaranteed minimum future value to reduce monthly repayments.Customers can choose to pay a predetermined amount to keep the car or upgrade to a new model at the end of the loan period.Tesla said this will minimise the unexpected depreciation usually attached when selling a previously new car.New cars depreciate by a significant portion of the purchase price over the first few years of ownership, generally, and EVs have attracted a higher rate of depreciation than other cars.Tesla said that by deferring a portion of the car’s cost to the guaranteed future value, monthly payments will be cheaper than traditional loans.The car must be well looked after and comply with wear and tear guidelines, as well as meet the agreed kilometre usage in order to be eligible for the deal.Car leasing company Driva is facilitating the scheme, with the initiative being extended to rideshare later this month.The Tesla Model Y SUV and Model 3 sedan are both eligible for the deal.The Model Y starts from $58,900, before on-road costs, with prices ranging up to $89,400 for the Performance grade.Meanwhile, the Model 3 starts from $54,900, but the top grade costs a minimum of $80,900.The Model Y was the best-selling car in Australia in June, producing the best sales month since the Holden Commodore in the early 2000s.Tesla introduced a six-seater variant of the SUV earlier this year, the Model Y L, which it said has been a strong seller.Electric vehicles sales continue to increase in Australia in light of their increased affordability and skyrocketing fuel prices.

Geely’s new model roll-out in Australia continues to gather pace with the formal introduction of the Chinese maker’s pure-electric EX2 city car, priced and specified to challenge the recently introduced BYD Atto 1.Offered in two grades, the Complete at $26,490, before on-road costs and Inspire at $30,990 before on-roads, the new five-door hatch is scheduled to arrive in dealerships late this month.The Complete is powered by a rear-mounted 60kW/150Nm electric motor fed by a 35.3kWh LFP battery for a relatively modest WLTP range of 252km, while the Inspire ups motor outputs to 85kW/150Nm with a 47.1kWh LFP battery extending range to 345km (WLTP). Maximum DC charging speed is 60kW for the Complete and 80kW on the Inspire with AC rated at 6.0kW for both.Geely has already claimed the EX2 as the world’s best selling small EV and China’s top-seller domestically in 2025 and said a pre-release dealer roadshow has been “generating significant expressions of interest and pre-orders” here.Underpinned by the same Global Intelligent New Energy Architecture (GEA) platform as the Geely EX5 EV SUV and larger Starray EM-i PHEV SUV, the EX2 is just over 4.1m long, 1.8m wide and a bit less than 1.6m tall with a 2650mm wheelbase.Suspension is a strut front, multi-link rear set-up tuned “in collaboration with Geely Technology Europe (formerly Lotus Tech Innovation Centre GmbH) to better meet the preferences of European and Australian drivers.”So, not a specific Aussie calibration, but Geely is keen to emphasise the multi-link rear end’s superiority over the torsion beam arrangement more commonly found in this type of compact car. Turning circle is a usefully tight 9.9 metres.The EX2’s compact dimensions put it in light EV territory with the BYD Atto 1 (from $23,990), while taking pot shots at small EVs like the BYD Dolphin (from $29,990) and GAC Aion UT (from $31,990) - all prices before on-road costs.  Both grades feature a 14.6-inch central multimedia touchscreen (with built-in nav), an 8.8-inch digital instrument cluster and power front seats as well as LED head and tail-lights, plus Apple CarPlay and Android Auto connectivity.Audio is a four-speaker system and the 16-inch wheels are steel on the Complete, with a six-speaker stereo, alloy rims, a power tailgate, wireless phone charging, heated front seats and 256-colour ambient lighting added to the top-spec Inspire.Geely Connected Services will be active from August for the Geely EX2, with access included for 24 months and an updated Geely App will provide remote access to functions including door and window control, climate control, vehicle status and scheduled charging.Able to seat five, the EX2’s compact power unit makes room for a generous 375-litre boot, plus there’s a 70L frunk, 28L of under-seat storage and a 10L ‘drawer-style’ glove box.Despite the car’s diminutive size active (crash-avoidance) safety includes Auto Emergency Braking (AEB), front and rear collision warning, front and rear cross-traffic alert, lane-keeping assist, traffic sign recognition, blind-spot monitoring, driver monitoring, adaptive cruise control, Auto Lane Change Assist (ALC) and more with a 360-degree camera view standard on the Inspire.An EX2 limited time launch package (July 12 to August 31, 2026) includes a finance offer, free 7.0kW home EV charger and premium paint upgrade.2027 Geely EX2 pricing 

BYD is offering to refund millions of dollars worth of cars in Australia after an “administrative error”, according to reports.Hot on the heels of its best ever sales month in Australia, the Chinese behemoth has committed to refunding 1265 customers who were mistakenly given 2025 built vehicles instead of 2026 builds, according to the ABC.Build year can have a material effect on the vehicle’s value, with older stock usually discounted in dealerships and the car being worth less when it comes to resale time as it appears to be one year older.CEO of the Consumer Policy Research Centre Wrin Turner told the ABC the depreciation ramifications could leave owners "seriously out of pocket".Once BYD had been alerted to the error it contacted customers and offered a $1100 refund for the clerical error, but many weren’t happy with that compensation, according to the ABC report.Now the company is reportedly offering customers a full refund."It was an administrative error that occurred. There was no deceit," a BYD spokesperson told the ABC."It's important that we keep ourselves in good faith with Australian customers. We need to do the right thing."The BYD spokesperson told CarsGuide the company had used the dates the cars left the factory instead of the date they were manufactured.He stated there were no real differences to the cars delivered to the ones built in 2026.The spokesperson said most customers had chosen to accept the $1100. BYD will contact all affected owners again with the updated offer, which they are free to take up if they have already agreed to the previous offer.BYD sells vehicles for as little as $23,990 and as much as $70,000, all before on-road costs.Customers the ABC talked to bought Atto 3 electric SUVs for about $47,000. It is understood that most vehicles were the Atto 2 and 3 SUVs.This means the company could have to hand back about $50m.The returned vehicles will then be resold as used vehicles.BYD made a concerted effort to boost sales in the past three months, with the promise of 30,000 cars to arrive by the end of June earlier this year by General Manager BYD Asia Pacific Mr Liu Xueliang.The company delivered on that promise, culminating in the ballyhooed arrival of BYD’s own car carrier packed to the rafters with BYD vehicles.Liu said in April it was important the company meets the growing demand and is able to get customers as soon as they place an order.It appears in its rush to meet a massive increase in demand the company may have shipped some older stock to Australia.

MG is furthering its moves to retain its historic British links by showing off two new electric cars at the 2026 Goodwood Festival of Speed.The MG ‘Go!’ and MG Cyber Concept have both been revealed at the motorsport-leaning festival that has increasingly become an occasion for brands to showcase new models and concepts they hope will connect with enthusiasts.Among a display of MG’s current line-up, the MG ‘Go!’ and Cyber Concept - the former a retro-inspired hatchback and the latter a large SUV with a wagon silhouette - both aim to draw on MG’s British heritage to build more brand cache in its Chinese-owned era.The ‘Go!’ is a preview of a model set to go into production in 2027, with inspiration taken from some of the brand’s iconic models like the MGB GT.But MG’s UK-based Design Director, Carl Gotham, didn’t intend “to create a nostalgic showpiece, but something contemporary and relevant” according to an MG press release."With MG ‘Go!’, we wanted to create something compact and contemporary, but also warm, expressive and immediately likeable, an embodiment of all that we admire about the MG brand,” said Gotham.“It is not about looking back for its own sake, but about capturing some of the clarity, charm and emotional appeal that have always made MG so distinctive, and reinterpreting that in a way that feels relevant today and crucially creating something with strong charisma.”The MG Cyber Concept, unrelated for the most part to the MG Cyberster sports car, also previews a future model.MG says it “draws inspiration from two defining chapters in MG’s history”, those being the EX181 land speed record car, and the “spirit of innovation and reinvention that continues to shape MG today”.The large SUV is set to be a high-performance model, with a “dynamic character and sense of occasion traditionally associated with sports cars”, according to MG.Very little of either model has been detailed in terms of specification or features, so we won’t know more until the production versions of these two concepts start to shape up closer to their respective launches.

Honda has rolled out upgrades to its Fit hatchback, which was known as the Jazz in Australia.Once one of our markets most popular hatchbacks, Honda Australia discontinued it in 2021 and has since cited the shrinking market share for hatchbacks and higher entry price of the new model as reasons that it has yet to return.Despite this, the new fourth-generation model has been on sale in the UK for some time and has now been updated in its home market of Japan.Celebrating its 25th anniversary, the new version has tweaked styling and variant structures, as well as upgraded materials inside and out, with an upgraded multimedia suite.In addition, the RS variant scores sportier gloss-finish design touches, while the range-topping Crosstar gets SUV-like plastic overfenders, with a higher level of standard inclusions for this update like a heated steering wheel and front seats.The new Fit continues to be available in Japan with two powertrains, either a 1.5-litre dual-motor plugless hybrid (90kW/253Nm) or a 1.5-litre petrol (87kW/142Nm) with a CVT automatic. In Japan, the Fit can be had in front- or all-wheel drive layouts in any variant and with any powertrain, while in the UK it can only be had as a front-wheel drive in hybrid form.In Japan the Fit range spans from the equivalent of $16,084 for a base front-wheel drive non-hybrid to $26,320 for the range-topping Crosstar e:HEV AWD. In the UK the pre-update Jazz version starts from a much more expensive A$52,388 for a base e:HEV Elegance, and tops out at an eye-watering $56,868 for the top-spec Crosstar e:HEV.At the time of its discontinuation, the locally-sold Honda Jazz was one of the most affordable new cars on sale in Australia, with a starting price of just $14,990 before on-roads for an entry-level VTi manual, with the top-spec send-off VTi Limited Edition priced at $19,990 before on-roads.The entry-point to the Honda range now is the Fit-related HR-V Vi X small SUV, which is priced from $32,900 drive-away.Honda has said it won’t return to the hatch segment with the Jazz, but it will return with its fully electric Super-One city hatchback, which is due in Australia before the end of the year.The Super One is priced lower than the Jazz, in the UK anyway, from the equivalent of $36,704.Whether it has what it takes to challenge the growing array of Chinese offerings in the electric hatchback space, spanning from the similarly-sized BYD Atto 1 ($23,990 BOCs) to the BYD Dolphin ($29,990 BOCs) and MG4 Urban ($31,990 drive-away) remains to be seen.Honda is in the process of expanding on its range of plugless hybrid offerings in Australia as it looks to improve its fortunes since it changed its business model to an ‘agency’ style from a traditional dealer model in 2021 coinciding with the discontinuation of the Jazz.

My 2003 Hyundai Getz brake lights stay on. They won't turn off.

The small and light passenger car segments have been dwindling for years in Australia, but new offerings are helping to revive the affordable new car.These cars are the BYD Atto 1, MG3 and MG4 Urban. They’re all from Chinese carmakers and offer electrified power options.In June BYD sold a total of 871 examples of the Atto 1. It’s only been on sale for a few months and it’s the most affordable electric vehicle (EV) in Australia with a starting price of $23,990 before on-road costs.It was only pipped at the post in terms of monthly sales by the MG3 with a total of 898 examples sold. This is down 1.8 per cent compared to June 2025.The MG3 is now one of the only cars that's available for less than $20,000. It’s offered with both petrol and hybrid power.The Kia Picanto is the only other new car that’s available for less than $20,000 and it’s even smaller than the MG3. The South Korean carmaker sold 626 examples during June, which is down 13.3 per cent over the same month last year.MG also had some sales success with its new MG4 Urban small electric hatchback in June with a total of 1015 examples sold during the month.This almost outsold the venerable Toyota Corolla which shifted 1037 units. This is down 28.6 per cent compared to June 2025.Looking at the year-to-date (YTD) sales figures, BYD has sold a total of 3254 examples of the Atto 1 despite only being on sale for a few months.The Chinese carmaker has been going from strength to strength in terms of sales in Australia. It’s now the second best-selling brand in Australia behind only Toyota, which has held the crown for the last 20 consecutive years.MG sold a total of 3917 examples of the MG3 to the end of June which was down 25.9 per cent year-on-year. For context, MG sold a total of 8984 examples of the related ZS small SUV over the same period, an 11.7 per cent drop.MG sold a total of 1424 examples of the MG4 Urban up to the end of June. It’s only been on sale for a few months now and it appears full supply is coming on tap and backorders are being fulfilled.Forecasting for the rest of the 2026, it will be interesting to see how much of this renewed interest in certain small cars carries on as the segments as a whole continue to decline.Light and small SUV sales continue to boom and don’t look like they’re slowing down anytime soon. The overall sales volume for the segments are much higher than the respective passenger car segments too.Chery sold a total of 13,638 examples of the Tiggo 4 small SUV until the end of June, which is up 70.6 per cent year-on-year. It also makes it the fifth best-selling car in Australia overall.The best-selling passenger car currently is the Toyota Corolla in 22nd place for YTD sales. Every vehicle with a higher sales volume is either an SUV or ute.