Urban

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.

The Kia K4 was a massive shakeup for the South Korean carmaker when it launched in Australia last year as it ditched the popular Cerato nameplate.Launching initially in sedan guise only, the K4 hasn’t been the sales hit the Cerato was, at least yet. The K4 Hatch has now arrived and it could help correct the course.Measuring 27cm shorter overall than the sedan, the K4 Hatch has a shorter rear overhang. This makes the K4 look more European and contemporary than the more conventionally styled sedan.Another benefit of the shorter rear hangover is it's easier to park in tight parallel car spots. This can make a world of a difference to small car buyers.While shorter overall, the K4 Hatch’s wheelbase remains unchanged from the sedan. This means the almost tardis-like interior space carries over, especially for second-row passengers.Overall boot space (438L) is down slightly on the sedan (508L) but the boot opening is much larger and the space itself is squarer and usable for big, bulky items. It’s also great to still see a space-saver spare wheel under the boot floor.Another big shakeup that coincided with the introduction of the hatchback body style was a slight change to what powers the non-GT-Line K4 trims.It’s still a 2.0-litre naturally aspirated four-cylinder engine but produces slightly less power and torque (110kW/180Nm vs 112kW/192Nm). It’s also mated to continuously variable transmission (CVT) rather than a torque-converter automatic. The same set-up can be found in the Kia Seltos and Hyundai i30 Sedan, among others.While this engine has never been an outright performance beast, the CVT does make the most of what it has to offer. It’s happy to flare the revs when required to get up to speed, but you get that monotonous engine drone as there's no gear changes.At higher speeds the engine does run out of puff and it frequently needs to dip above 3000rpm in order to maintain highway/freeway speeds.Despite this, fuel consumption has improved dramatically thanks to the CVT. Kia claims it consumes an average of 6.1L/100km, versus 7.4L/100km for the MY25 K4 Sedan. In the real world I saw an average of 6.9L/100km across 350km of urban/highway driving, which is considerably better than what I got in previous testing of the K4 Sedan with the six-speed torque-converter auto.It’s disappointing the K4 still only has a 47L fuel tank which is small for the segment and means you’ll need to be refuelling more frequently.Another redeeming factor for the lack of engine power is how comfortable and dynamic the K4 Hatch is to drive. Like the sedan it has received a local ride and handling tune and that is evident in and around town, as well as on the open road.The car reacts to pimply urban roads with suppleness and even larger bumps at higher speeds don’t unsettle the ride.This is complimented by the steering which is direct and has a nice weight to make the car feel fun to drive on the open road but not too unwieldy in tight, urban streets.The K4 Sport+, which is the penultimate trim level in the line-up and the highest trim with the 2.0-litre non-turbo engine, is priced from $39,090 before on-road costs, regardless of the body style. This is getting up there in terms of price compared to similarly specced rivals like the Toyota Corolla Hybrid and Subaru Impreza.Standard equipment includes 17-inch alloy wheels, LED headlights, a 12.3-inch digital instrument cluster, 12.3-inch touchscreen multimedia system with wireless Apple CarPlay and Android Auto, a 5.0-inch climate control screen, synthetic leather upholstery and heated front seats.However, for almost $40,000 before on-road costs this K4 misses out on a wireless charger and it has a plastic steering wheel instead of a leather- or synthetic leather-wrapped unit.Beyond this, the K4 Sport+ comes with the entire active safety suite including autonomous emergency braking (AEB), blind-spot monitoring, rear cross-traffic alert, adaptive cruise control with lane centring and lane change assist, plus front and rear parking sensors and a reversing camera. Strangely a surround-view camera isn't offered across the line-up.There are also seven airbags, an emergency SOS calling function, plus ISOFIX child-seat anchorages on the two outboard rear seats and top-tether points on all rear seats.Like all Kias, the K4 is covered by a seven-year, unlimited-kilometre warranty. This is now becoming standard among mainstream carmakers.Servicing is required every 12 months or 15,000km, whichever comes first. The first seven services cost a total of $3883, which averages out to $554 per service. This isn’t cheap and you’ll pay less for servicing an equivalent Hyundai i30 or Toyota Corolla Hybrid.

After three years on sale in Australia, Toyota's performance-focused GR Corolla has been given some mid-life love.Toyota says the chassis is stronger thanks to extra structural adhesive used to bond key areas together (mostly the underbody and rear wheel wells). And that’s on top of the fact the car’s frame is already hand-finished in the Toyota Gazoo Racing factory in Motomachi, Japan, with additional bracing and spot welds to enhance rigidity. An extra inlet on the three-cylinder turbo-petrol engine’s secondary intake duct draws cool air from the front grille to lower intake air temp at faster engine speeds. The lower part of the grille has also been revised with new vent sections for engine cooling and airflow management into the front wheel arches.  And inside, the standard JBL audio system has stepped up from eight to nine speakers with the addition of a subwoofer in the boot.At the same time, the ‘Active Noise Control’ system has been tweaked to keep the cabin quieter most of the time and ‘Active Sound Control’ has been added to synthetically beef up the turbo-triple’s throaty induction noise and growling exhaust note when the driver has the bit between their teeth.But the rest of this hi-po hot hatch’s standard specification is unchanged, as is the price at $67,990, before on-road costs, for the manual version and $70,490 for the auto.Somehow, cooler air entering the cylinders hasn’t upped engine outputs, which remain at a stout 221kW at 6500rpm and 400Nm from 3250-4600rpm.That torque number, 30Nm higher than the launch GR Corolla, was inherited from the initial, limited-run Morizo Edition in a late 2024 model year update that also introduced availability of an eight-speed torque-converter auto transmission (as per our test example) alongside the standard six-speed manual gearbox.And the ‘GR-Four’ all-wheel-drive system retains its electrically-controlled multi-plate clutch on the rear axle with Torsen-type limited-slip differentials front and back.And the rest of it’s all there, from the 18-inch Enkei alloys shod with Yokohama Advan V601 (235/40) rubber, to the bulging bonnet, macho body kit (incorporating roughly 5000 vents and ducts), bigger brakes, sporty interior and forged carbon roof insert.So, is it still the pocket-rocket GR Yaris’s heavy-hitting big brother, with the power and dynamics to match serious competitors like the Honda Civic Type R ($79,000, drive-away), Subaru WRX tS Sport Sportswagon ($63,290, BOC) and VW Golf R ($71,990, BOC)? We spent a sporty week behind the wheel to find out.Aside from the dynamics and performance tech, which we’ll get to shortly, the GR Corolla boasts a healthy standard features list. As it should, with cost-of-entry comfortably more than double that of an entry-level Corolla Ascent Sport ($29,610, BOC).Highlights include a head-up display, LED exterior lights, leather and synthetic suede trimmed sports front seats (also heated), dual-zone climate control, a heated steering wheel, a 12.3-inch multimedia touchscreen, the JBL audio set-up (including wireless Android Auto and Apple CarPlay), racy alloy pedal covers, wireless phone charging and adaptive cruise control (auto only).The aero-influenced body kit incorporates a bulging alloy bonnet and safety’s through the roof with the ‘Toyota Safety Sense’ suite including auto emergency braking (AEB), blind-spot monitoring, rear cross-traffic alert, road sign assist, seven airbags and heaps more.Bundle in a super-competitive $395 capped-price annual service cost for the first five years and the GR Corolla stacks up well on value-for-money relative to its competitive set.It might accelerate from 0-100km/h in a bit over five seconds, and we’ll get to the drive experience in a moment, but the GR is still a five-door hatch. And it inherits the good and not-so-good practicality attributes of its more everyday 12th-gen (E210) Corolla stablemates.A 2640mm wheelbase means while there’s ample space for the driver and front passenger the rear seat is relatively tight with just enough leg and headroom for full-size adults. A small rear door aperture makes entry, and particularly egress, a Houdini-like escape exercise.Modest boot volume has been an Achilles heel for the current Corolla from day one and the GR’s 213 litres is even smaller than the standard hatch’s 217L thanks to the performance version’s AWD and sports exhaust hardware underneath. And that’s despite the GR forgoing the standard line-up’s space-saver spare for an inflator/repair kit.Against an official combined cycle (urban/extra-urban) fuel economy figure of 9.5L/100km we saw an on-test average of 12.3L/100km, including a mix of suburban and city commuting as well as some more enthusiastic sessions.Not outrageous for a performance-focused hot hatch, and if it’s fuel efficiency you’re after, there’s always the standard four-cylinder hybrid Corolla models.Speaking of enthusiastic sessions, the GR Corolla remains an ultra-capable and satisfying performance drive.Brilliant steering response and road feel, balanced and buttoned-down in quick cornering, the strut front, double-wishbone rear suspension keeps the car stable and predictable at all times.The Yokohama rubber delivers impressive grip and helps the car clearly communicate what’s going on, the slick AWD system putting the power down brilliantly.Ride is relatively firm over typically bumpy suburban surfaces and pock-marked B-roads. But that’s a price engaged drivers will no doubt pay happily. And on the upside, the sports front seats are comfy and supportive.  As the turbo triple spins furiously towards its 7000rpm rev ceiling that characteristically coarse three-cylinder engine note builds to a smile-inducing bark. Some of that raucous noise may be synthetically enhanced. In fact, there are ’sound patterns’ to accompany each drive mode - ‘Normal’, ‘Sport’ and ‘Eco’. But you can switch it all off and the engine and exhaust still sound great.The eight-speed auto, however, is not the snappiest. If you’re used to the rapid-fire ratio changes of a dual-clutch, the comparatively relaxed shifts from this transmission (even in manual mode at higher revs) will be a less than pleasant surprise.

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.