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Brand loyalty is being increasingly eroded according to exclusive data in Gumtree Group’s The Next Gear: Australia in Motion report.In a survey of prospective buyers looking at hybrid and plug-in hybrid cars, just three per cent had an exact model in mind and only nine per cent had a preference on brand.The data shows 38 per cent of respondents said they were open to a variety of car options or were undecided, while 25 per cent knew the type of car they wanted, but had no preference on the brand. The data was generated from a survey of nearly 4400 people who visited Gumtree, CarsGuide and Autotrader in 2025.The erosion of brand loyalty has been in part brought on by the significant influx of new players entering the Australian market, with aggressive price-points.This trend has continued into 2026. Already this year, BYD’s luxury sub-brand Denza launched with its B5 and B8 SUVs, while several other brands, including Chery’s sub-brand Lepas are not too far away. These new players will add to the already-diverse list of manufacturers with cars on sale Down Under, with some of those shaking up the established pack. The likes of BYD and Chery, with extensive electric and hybrid options, have made huge strides in the Aussie market at the expense of brands such as Mitsubishi and Subaru.The latest sales data also revealed Chinese manufacturers overtook Japanese manufacturers Down Under for the first time in February 2026.It is a similar story when looking at the best-selling brands, with both Toyota and Mazda experiencing sizeable drops in sales month-to-month, while BYD, GWM and Chery all saw big increases. There are signs now that Chinese brands are beginning to snatch more sales from each other in Australia, with LDV and MG losing out to rivals.The same goes for established brand GWM, which for the first time was overtaken by BYD in the sales charts for Australia last month.Hybrid choices continue to grow in popularity, but petrol sales remain dominant for now. As brands continue to favour hybrid over petrol in their line-ups thanks in no small part to Australia's new vehicle efficiency standards (NVES), the electrified shift with accelerate. Many brands like Toyota have shifted entire product portfolios to hybrid-only, while others are expected to follow suit before long as regulations bite toward the end of the decade.

Fuel prices in Australia are soaring, meaning fuel efficiency in vehicles is a more important consideration than ever. Hybrid cars offer the potential for superior fuel efficiency compared to internal combustion power without the big price premium if fully electric or plug-in hybrid options. This makes them an increasingly attractive option for buyers given the current global climate. Hybrid sales are already booming in Australia, but will increases in fuel prices accelerate the shift away from pure internal combustion cars? NRMA spokesperson Peter Khoury said that while hybrid sales are increasing, an even swifter transition is less than clear. “If you’re driving a standard vehicle with a 55-litre tank, compared to what we were paying before the war began to now, it’s a $45 increase on one tank of petrol. That applies regardless of whether it’s hybrid or petrol,” Khoury said. “Historically speaking, looking at what happens after an oil shock, it certainly opens up their consideration. “No doubt that if this crisis continues and these prices hang around for weeks or months, Australians will look at those alternatives more seriously.” Below is a comparison between popular petrol and hybrid choices in each segment to see how they stack up in a changing fuel context. Fuel cost has been calculated using current data from the New South Wales’ government’s average fuel price for unleaded 95 petrol and diesel. Toyota’s Corolla hybrid hatch offers superior fuel efficiency and driving range compared to the Kia K4 petrol model. The Corolla is also cheaper to fill up with fuel thanks to its smaller tank and offers a substantially bigger driving range. The Kia Seltos is a petrol-only variant, but despite its bigger fuel tank, it has less driving range than the Toyota Corolla Cross, courtesy of the hybrid powertrain. The bigger fuel tank means the Seltos is also more expensive to fill up. The mid-size CX-5 has a non-turbo charged petrol engine, which sees it offer an impressive estimated driving range of more than 800km, but once again the Toyota competitor’s fuel efficiency wins out in the RAV4 hybrid. The Toyota Kluger continues the Japanese juggernaut’s fuel efficient theme, with a hybrid set-up offering a driving range of more than 1122km, which is significantly more than the MQ QS, despite both cars costing a similar amount to fill up at the bowser. Utes are some of the worst affected by the fuel price increase as many of them are powered using diesel engines, with diesel fuel rising more than petrol. It has now risen to well beyond the $2.60 mark per litre. The BYD Shark’s plug-in hybrid set-up uses petrol, which makes it an affordable option, given the price of diesel. It should be noted that the Shark 6’s fuel efficiency is significantly reduced when the battery is not charged. It’s a similar story for the GWM Cannon Alpha, which should be noted is no longer on sale, but remains one of limited plug-less hybrid utes in Australia. 

Chery’s QQ3 budget hatch EV has been given a sharp price overseas ahead of its potential Australian launch as another budget EV hatchback battler.The Toyota Corolla-sized QQ3 is priced from 68,920 yuan in China, which converts to around A$14,000. While cars imported from China carry a significant price increase, it would still fall around the $20,000 mark in Australia when the usual additional costs added. This is similar pricing to the BYD Atto 1 in Australia, which has a starting price of $23,990, before on-road costs. However, it is more likely Australia would get the pricier long range version of the car, which has 420km of range as opposed to 310km, according to more lenient CLTC.This would give it a closer range to its rivals, which have around 350-400km real-world capacity. This variant of the car would more likely sit closer to the $30K bracket, in a similar price region to the GWM Ora and MG4. It could also line-up as a competitor to the incoming GAC Aion UT in an emerging Chinese electric hatchback battleground, which will start from $31,990 (before on-roads).The QQ3 would probably need a more powerful electric motor set-up than the 58kW and 90kW currently on offer in China if it launches in Australia. Its current set-up is underpowered compared to many of its rivals, such as the Aion UT, GWM Ora and MG4, which all have at least 125kW of power as standard. When CarsGuide contacted Chery Australia about the car late last month, the brand said it could not confirm whether the QQ3 is destined to launch Down Under. However, local Chief Operating officer Lucas Harris has previously said the brand is eager to bring an electric hatchback to Australia, making special mention of the QQ lineup, so it may not be too far away.Chery is continuing to grow its presence in Australia, and finished in the top 10 best-selling brands for February 2026.Chery’s only all-electric offering in Australia currently is the E5 compact SUV.

A combination of increasing component costs, ever-higher safety and emissions requirements as well as the need for new-generation tech to match fast-moving competitors has driven the domestic entry price for Toyota’s Corolla close to 60 per cent higher over the last decade.According to data from the Statistics Bureau of Japan (SBJ) as originally reported by Nikkei Asia the price of an entry-grade Corolla sat at ¥2.28 million yen (~$20,600) in 2025, up from ¥1.45 million (~$16,100*) in 2015. *Based on an average 2015 Yen/AUD exchange rate.For reference, in Australia a base Toyota Corolla Ascent auto cost $21,790, before on-road costs, in 2015. And in 2025 the entry-level Corolla Ascent Sport was $29,610, BOC, an increase of just over 35 per cent.As the statistical arm of the Japanese Ministry of Internal Affairs and Communications, the SBJ not only manages the country’s population census but tracks thousands of day-to-day consumer costs - from school fees and railway fares to baby clothes and soy sauce.A range of factors, including inflationary pressure driving up component supplier costs, increased standard safety requirements and tightening fuel economy and emissions legislation has driven the price rise.In recent years, emerging global competitors, particularly from China, have also placed greater emphasis on driver assist tech and multimedia functions driving the need for additional cameras, radars, microchips and more.Over the same 2015-2025 period, average Japanese worker income increased around 10 per cent and in early 2024 the Bank of Japan’s policy interest rate rose for the first time since 2007 and has been gradually rising since).Much of Japan’s car finance business is underpinned by residual loans (similar to a finance lease) at low interest rates and the rising cost of money is pushing car ownership out of reach for many potential buyers.SBJ data show even ‘kei’ city cars, the production of which is shaped by government incentives to provide low-price, fuel- and space-efficient new vehicle options to help keep the population mobile and the domestic car manufacturing business humming, have risen steeply in price.Specifically, 33 per cent from an average entry-price of ¥1.18 million yen in 2015 to 1.76 million yen (~$15,900) in 2025.And in heavily built-up areas car-sharing is an increasingly popular kei car alternative; a contributor to Japanese domestic market new-vehicle sales being down 10 per cent in 2025 compared to 2015.Evolving tastes have impacted relative pricing as Japanese consumers lean more towards full-size SUVs and people movers than compact cars.Prices of ‘Compact Passenger Cars’ increased 31 per cent to ¥2.39 million (~$21,500), while ‘Full-sized Passenger Cars’ rose 24 per cent to ¥3.72 million (~$33,500).At the same time, sales of full-sized passenger vehicles were up 30 per cent in 2025 compared to 2015, while compact passenger cars softened by 40 per cent.

It’s no secret Toyota wants to revive the Celica nameplate. Now, thanks to a Portuguese rally fan, the new Celica is no longer a secret at all.

Chery has officially unveiled its QQ3 small electric hatchback in China.Chery Australia could not yet confirm whether the QQ3 was destined for Australia, but we know the brand is keen on the prospect. Local Chief Operating Officer Lucas Harris has already signalled his desire for an electric hatchback to launch Down Under.“I think having a very small and then a small hatchback would be a game changer,” Harris said.“I think there’s a huge amount of potential in those segments, and at the moment I think those segments are a little bit stale and not that interesting.“So if we could bring something like the QQ, I think it’d be a huge amount of opportunity.”The QQ3 sits as a rival to other small budget EVs, which in Australia, would be fellow Chinese competitors such as the BYD Dolphin, GWM Ora and MG4 - all sitting around the $30k price bracket. Expect Chery's hatch to sit in a similar price bracket, if not even more affordable, if it comes to Australia with it being positioned generally as a budget EV. It would likely need more power than its entry-level 58kW output from its single rear-mounted electric motor as debuted in China to be competitive in our market. There is also a 90kW set-up, but that also seems a touch under-powered compared to rivals.Its lithium-iron-phosphate (LFP) battery options offer a driving range of either 280km or 401km, but that is calculated using the lenient CLTC testing cycle. More-accurate-to-real-world WLTP numbers are often noticeably less than that.On the inside, the car has a 15.6-inch central touchscreen and dual 50W wireless phone chargers. It will also be able to be optioned with heated and ventilated seats, as well as a heated steering wheel, following in the footsteps of other Chery models which offer high spec at a low entry price.The car gets the typical QQ bubble exterior design, with a segmented, round front and rear headlight design that houses diagonal strips. It rides on 17-inch wheels.Deliveries on the new QQ3 are scheduled to begin next month in its Chinese home market. Expect to learn more about Chery's range expansion as it follows up on the much-anticipated launch of its first dual-cab with a unique diesel hybrid powertrain later this year.

What is the cheapest new small SUV in Australia? We know, but you should, too, if you’re looking for a little SUV that won’t cost you big dollars.By small, we mean a step up from the very tiny light SUVs such as a Hyundai Venue but not as big as a mid-sized SUV like a Toyota RAV 4.So without any more delay, these are the top 3 most affordable small SUVs in Australia right now.The Chery Tiggo 4 is the most affordable small SUV in Australia at the time of publishing at a driveaway price of $23,990 for the entry grade Urban. And just to stress, drive-away pricing means on-road costs like stamp duty, registration, dealer delivery and compulsory third part are all paid.The Tiggo 4 Urban has been tested by CarsGuide’s reviewers who found it surprisingly spacious, well equipped for the money and also fuel efficient.Drawbacks of the Urban include it not being as good value as other Chery models and it also being not very memorable to drive.Powering the Tiggo 4 Vibe is a 1.5-litre petrol engine in front-wheel drive.Standard features on the Urban include a 10.25-inch media screen, Apple CarPlay and Android Auto, dual-zone climate control and cloth seats.There are five seats and a 470 litre boot - measured to the roof.The Tiggo 4 scored the maximum five stars for its ANCAP safety test in 2023. MG has earned its place in Aussie driveways with vehicles that continually improve and the new ZS is a good example of that constant refinement while staying incredibly affordable. In this case the entry-grade ZS Vibe is $25,888 drive-away. CarsGuide reviewers said the ZS in the Vibe grade was spacious, good value, and had a refined and stylish look.A 1.5-litre petrol engine drives the front wheels, but reviewers felt the engine was underpowered.Standard features include a 10.25-inch media screen Apple CarPlay and Android Auto, air-conditioning and fabric seats. There are five seats and a 443-litre boot.ANCAP gave the ZS the maximum five-star rating for safety in 2025.The third most affordable small SUV in Australia is the super popular GWM Haval Jolion in the Premium grade, which wears a list price (not drive-away like the others here) of $26,990.CarsGuide reviewers called out its roominess, good looks and low ownership costs.Despite the name, Premium is the entry grade and standard features include keyless entry, a 10.25-inch touch screen and air-conditioning. Reviewers also said the driving experience was let down by an underwhelming engine and annoying safety alerts.A 1.5-litre turbo petrol engine drives the front wheels.There are five seats on board and the boot is quite small at 337-litres.ANCAP awarded the Jolion the maximum five-star safety rating in 2022.

These are the most affordable new hatchbacks in Australia.

BYD has detailed its upcoming Racco city car as it gears up for debut in Japan.Designed expressly to meet Japanese Kei car regulations, the Racco represents BYD’s greatest market-specific attempt to shake the hold of local automakers, and serves a symbolic threat to Japan’s dominant carmakers on their own turf.The boxy battery electric is confirmed to be front-wheel drive only with two battery capacities (20kWh or 30kWh) allowing for either 200km or 300km of driving range, respectively.The brand has now revealed the car’s interior, which it did not show at its reveal at the Japan Mobility Show last year, and has confirmed it is targeting a mid-2026 launch date for the diminutive city car.On the exterior, the Racco sticks to BYD’s ‘Ocean’ design theme, while blending in the space-efficient boxy profile usually only worn by domestically-built Japanese Kei cars like the Mitsubishi eKX, Suzuki Spacia or Daihatsu Tanto.Meanwhile the interior features many familiar themes from other BYD models, including a digital instrument cluster and  central multimedia touchscreen perched atop the dash, a central control panel housing various buttons and dials. Interestingly, it features a shift stick rather than the dial-based toggle selector as seen on the Australian-delivered Atto 1, or the stalk-mounted shifter as seen on many newer BYD models.The brand says this central control console was deliberately designed to be familiar to the cabin ergonomics of other Kei-class vehicles to suit the tastes of Japanese buyers.The interior images also confirm at least one grade of the Racco will feature heated front seats, and split-bench style seating as is common on Japanese city cars.It will also feature dual sliding doors like other Kei-class vehicles, and is designed to fit a bicycle in the boot.As part of a new pre-launch web portal for the Racco in the lead-up to its Japanese launch, BYD says it assembled a specialized research team in-house to travel Japan and study how buyers used Kei-class vehicles.BYD is targeting a starting price of around the equivalent of $23,000 for the Racco.Elsewhere BYD’s range in Japan mirrors that of the models available in the Australian market, likely due to its fellow right-hand drive configuration. The brand markets the Atto 3, Dolphin, Seal and Sealion 7, although is yet to offer some of the newer vehicles in our market, like the Atto 1, Atto 2, Sealion 6, or Sealion 5.It is interesting that BYD is focusing on EVs for the Japanese market, rather than plug-in hybrids, as it aims to carve out a niche in a country where Chinese cars are yet to be accepted.The brand’s commercial division also intends to launch a Japan-specific T35 compact cab chassis vehicle for the Japanese audience.Other Chinese brands are also eyeing a Japanese debut, including Geely and Xiaomi.As for the Australian market, BYD’s executives have previously indicated to CarsGuide we’re unlikely to see the Racco, as the model is made specifically for the Japanese audience. It is likely instead the Atto 1 will play this role in the compact hatch segment alongside the likes of the Kia Picanto, Fiat 500, Hyundai Inster, and incoming Honda N-One based Super-One.

Chery is going to shake up stale and uninteresting competitors in Australia.Chery Australia Chief Operating Officer Lucas Harris has revealed some of the cars on his wish list for Down Under, and the fast-rising Chinese brand has some of the biggest names in the business in its sights.“I think having a very small and then a small hatchback would be a game changer,” said Harris.“I think there’s a huge amount of potential in those segments, and at the moment I think those segments are a little bit stale and not that interesting.“So if we could bring something like the QQ, I think it’d be a huge amount of opportunity,” he said.That opens the door to two new cheap small cars from Chery’s city-focused QQ range.The very small hatch could refer to the QQ Domi, which was revealed last year.It is a pint-sized electric hatchback measuring just 3.7m long and 1.7m wide, which is just bigger than a Kia Picanto but smaller than a Suzuki Swift.It’s nearest EV competitor would be the larger BYD Atto 1, which is called Seagull in other markets.In China it launched at the equivalent of about $13,000. Chinese cars are usually 20 per cent more expensive here than the home market, which would mean it could lob in at about $16,000. That would make it not only Australia’s cheapest electric car, but the cheapest car overall.It has modest numbers to match its low price tag, with a single electric motor making 40kW and 110Nm sent to the front wheels. A little 28.5kWh lithium iron phosphate (LFP) battery, which is about the same size as found in plug-in hybrids, delivers a claimed driving range of up to 305km, according to the very generous China Light-duty Test Cycle (CLTC).Next up would likely be the bigger QQ3, which just opened for preorders in China.It measures 4195mm long ,1811mm wide and 1573mm tall, which puts it in the same ballpark as the Geely EX2 and slightly smaller than the BYD Dolphin.Power comes from a single rear-mounted electric motor making either 58kW or 90kW, which drives the rear wheels.At its core is a LFP battery that provides a driving range between 280km and 401km, depending on the grade. That is calculated via the lenient CLTC testing regime, so expect much less in the real world.It would likely be priced sub-$30,000 if it arrives Down Under.Chery also has one of the biggest names in the business in its flights, with the Toyota Camry officially put on notice.“And we also have some really great medium and large sedans in other markets — left-hand drive — which I think that sort of size in between medium and large sedans is a real opportunity in Australia as well,” said Harris.“There’s only really one serious competitor, and they don’t have much competition. They kind of own the whole market. So I think there is certainly a lot of opportunity there as well.”Chery will need to play in a lot more segments over the next few years if it wants to crack the top 10 and future top five sellers list in Australia.