What's the difference?
Long the domain of first-car buyers and suburbanites winding down on their driving years, the Toyota Yaris is now hybrid-only, and is a far cry from the $15,000-or-so cheap and cheerful staple it once was.
But with its fourth generation a few years into its lifespan, the Yaris is trying to be more than just a basic A-to-B runabout. In fact, the ZR we have on test is more expensive than an entry-grade Volkswagen Polo.
Does more than $30,000 of light hatch really feel worth it once you’re behind the wheel, or are you better off pocketing almost $10,000 to save on one of the thinning pack of rivals?
MG needs a win, and the MG4 Urban may be the right car at the right time to give the Chinese brand a major boost.
It has been a rough few years for MG, with sales in decline for the past two years, which has seen it tumble from Australia’s favourite Chinese car maker to a distant fourth place behind BYD, GWM and Chery.
Part of that could be because of its rapid expansion, both in terms of its total number of models but also the size of the vehicles it’s offering. The larger QS SUV and U9 ute have both received underwhelming responses from the car-buying public.
So, MG has returned to its roots - small, affordable cars. The MG4 Urban, not to be confused with the MG4 Hatch, is its new price-leading electric car and the company’s new management hopes it leads a sales revival.
The Toyota Yaris is as much car as many people should really need, and it's a refreshing antidote to the largely unnecessary shift towards SUVs as the ‘default vehicle’.
In the case of the ZR grade, the pricing could understandably be a reason you might consider an SUV instead. There are plenty of options for a similar price.
The problem with an SUV though is it will likely be less efficient and, due to physics, less agile and fun to drive.
Given the price and the fact that a couple of features are missing, the ZR probably isn't the variant to go for, but the Yaris is an overall solid foundation for a very convincing hatchback.
The MG4 Urban is not only the right car at the right time, perfectly catering to buyers looking to avoid rising petrol prices, it’s also a welcome return-to-form for MG as a brand.
MG is seemingly at its best when it sticks to small cars. It has traditionally excelled with the MG3 and ZS, smaller, more affordable products that keep expectations in check and can win over customers looking for the best bang-for-their-buck rather than simply the best car.
That’s not to say the MG4 Urban isn’t a good car. It offers tremendous value for money, excellent interior space and drives nicely, so anyone who has been considering making the switch to an EV should seriously consider this new arrival.
Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.
The Yaris’ best selling point could very well be its looks. While there are a lot of differences between the ZR and the bespoke GR Yaris hot hatch, they do look similar, especially from the rear.
Any small car like this is going to have an element of ‘cutesy’ about it, but the Yaris does well to look like a more sporting car than its rivals.
The grille is the only big design change Toyota made as part of its most recent update in early 2024. It's a new design that’s finished in partial dark chrome for the ZR.
At the rear, the ZR gets a spoiler above the rear window, helping it look a little more like its Gazoo Racing cousin, as does the block of black trim flanked by the tail-lights and the ‘Yaris’ and ‘ZR’ badges.
Even its front lower bumper would look reasonably at home on a more powerful car if the plastic trim at the sides had actual air vents rather than being closed off.
Inside, things are less exciting. The ZR’s interior seems plasticky and its grey cloth seats do nothing to make the space feel premium.
The ‘two-level’ look on the dash and the arrangement of the multimedia screen and climate controls below it feel outdated, but the cabin is (perhaps more importantly) clear and functional.
MG says the design inspiration for the MG4 Urban came from the $100,000 Cyberster. While there are certainly a lot of differences between that roadster and this hatchback, the air-intakes and wheel design are indeed very similar. And I guess the badge is the same too, so there’s that…
But, comparing it to the Cyberster misses the point. What makes the MG4 Urban’s design more interesting is the bits you can’t see. While it shares the same name as the MG4 Hatch, this car has almost nothing in common with it. That’s because this new MG4 Urban is based on the brand’s newer EV underpinnings that debuted on the MGS5 EV.
That means the MG4 Urban is front-wheel drive, whereas the hatch is rear-wheel drive, and because of the way the battery is integrated into the chassis, it creates not only a bigger hatchback but also one with a different shape.
The Urban is more ‘cab forward’ (to use design parlance) meaning a shorter bonnet, which creates more cabin room. It also means there is more boot space because the powertrain is located up front.
MG does a good job with cabin presentation too. It’s another step forward for the brand, improving the overall level of fit and finish from its earlier models, to create a cabin that looks modern and doesn’t feel like it has been built to a price.
For all its grey trim, the Yaris actually proves a very usable space for its size. The two front ‘sports’ seats are quite comfortable with decent bolstering.
The steering wheel is nicely shaped, and big clear buttons (like most of the cabin) mean controls for all the car’s functions are obvious.
The digital driver display is customisable in terms of its style, but the information you might need is easy to find and not distracting while you’re trying to concentrate on the road. The head-up display also helps there.
The physical climate control panel isn’t exactly ‘pretty’ but it’s infinitely better than needing to navigate through the screen above.
That screen itself is also easy to use. Toyota’s multimedia systems can feel outdated but the upside is there aren't loads of submenus to get lost in.
Storage is well covered: two cupholders are out of the way of elbows, plus a little storage space behind that between the front seats. There’s a small space behind the gear shifter for a phone, a couple of small 'shelf' spaces above and in front of the passenger, and there are decently spacious door card places for water bottles and the like.
In the second row, behind my own (178cm) seating position, ‘spacious’ is less applicable. It’s not surprising that the second row in a light hatch would be a little tight for an adult, but it’s not restrictive and some kindness from the front passengers could see the back seats become a comfy place for a sub-60-minute trip.
There’s no centre armrest, but each door has a water bottle holder and the aforementioned storage spot between the front seats is accessible from the second row.
Behind the rear seats, there’s a 270-litre boot which is decent for its class. The non-hybrid Mazda2, for example, has 250L.
The boot floor can be lifted to sit flush with the seats when folded down, and underneath there is a space-saver spare tyre, which is a huge plus.
As I just mentioned, the cabin is bigger than the other MG4, which creates good space in both seating rows.
Up front they’ve placed the gear selector on the steering column to create space for more storage in the centre of the car. That means there’s plenty of shelves, cubbies and cup holders to take care of your small (and not so small) items, spread across the cabin.
As for the boot, the switch to a front motor and a smaller rear suspension means a 382-litre boot with all seats up and 1266L if you drop the back seats. Plus there’s a 98L underfloor storage spot, in place of a spare wheel (with a puncture repair kit included instead).
The design of the key controls are simple and easy to use, with a digital display for the instruments ahead of the driver and a 12.8-inch multimedia screen in the centre of the dashboard.
Navigating the menus is relatively straightforward but in a victory for user-friendliness, MG has listened to feedback (and incoming Chinese government regulations) and added some physical controls. There are buttons and a dial for the air-conditioning system and a volume knob for the sound system.
In the grand scheme of new-car pricing, $34,530 before on-road costs doesn’t sound like a lot of money. That’s how much the Yaris ZR is new.
But compared to other top-spec trims in rival models, it’s one of the most expensive in its class.
It battles the Mazda2 ($28,190 for the top-spec GT), Suzuki Swift ($29,490 for the Hybrid GLX), MG3 ($32,819 for the Essence Hybrid+) and VW Polo ($34,790 for the Style). Only the Polo is more expensive as its top-level variant.
Regardless of the size of the car, the Yaris ZR is missing a couple of extra things that could make it feel properly top-of-the-range.
It’s not missing the essentials though. After an update in early 2024 it comes with a decent 8.0-inch multimedia display, wireless Apple CarPlay and Android Auto, plus an adequate six-speaker sound system.
On top of those Yaris standards, the ZR gets a 7.0-inch digital driver display, keyless entry, a head-up display, 16-inch alloy wheels, automatic air-conditioning with an air purifier and ‘premium cloth fabric’ for the sports-style seats.
It could do with a wireless phone charger and perhaps even leather seats - the latter available in the more affordable Mazda2 GT. Cloth seats and a cable to charge your phone don’t feel very ‘top-spec’. There are, however, two USB-C charging ports for doing so.
Premium paint colours (anything that’s not Glacier White) are $575, while the two-tone look with the black roof (available with Coral Rose, Bronx Bronze and Massive Grey) is $775. Our test car is Massive Grey with the two-tone black roof.
MG made its reputation in Australia by selling some of the most-affordable models on the market, filling the hole left by mainstream brands like Toyota, Hyundai and Mazda as they increased the entry-level prices in their respective line-ups. Something MG itself tried with the HS, QS and U9, as it expanded beyond the once-popular MG3, MG5 and ZS.
The MG4 Urban is a return to form in that sense for MG, with this new small car starting at just $31,990 drive-away. For context, the MG4 Hatch starts at $37,990 drive-away, so this is a much cheaper proposition. That starting price is for the MG4 Urban Standard Range, the Extended Range variant is priced from $34,990 drive-away.
That pricing does not feel accidental from MG Australia, despite what they may suggest when pressed. That’s because the new BYD Atto 2, the direct rival to the Urban, starts at $31,990 plus on-road costs. Even so, BYD has the last laugh, because it offers both the BYD Atto 1, which starts at $23,990, and the Dolphin, which is priced from $29,990 - to undercut the MG4 Urban, even if neither are considered direct competitors.
In terms of specification, both the Standard Range and Extended Range have the same equipment with the exception of the obvious - a bigger battery, and more power from the motor.
Standard equipment highlights include 17-inch alloy wheels, LED headlights and tail-lights, a leather-wrapped steering wheel, PVC seat upholstery, heated front seats, Bluetooth connectivity with wireless Apple CarPlay and Android Auto, in-built navigation and a six-speaker stereo.
The Toyota Yaris is a hybrid-only offering, with all variants powered by a 1.5-litre three-cylinder petrol engine that makes 67kW/120Nm and a 59kW/141Nm front motor-generator.
Toyota quotes a combined output of 85kW and doesn’t specify a total torque figure.
The electric motor draws power from a 4.3Ahr lithium-ion battery and is able to drive under electric-only power at low speeds.
The MG4 Urban Standard Range is powered by a 110kW/250Nm electric motor that drives the front-wheels via a single-speed transmission. The Extended Range has slightly more performance, 118kW and 250Nm, but aside from that they are the same motor.
Toyota claims a 3.3L/100km fuel economy figure under the combined WLTP cycle, and says it produces 76g of CO2 per kilometre.
With its 36-litre fuel tank, theoretically the Yaris should be able to travel almost 1100km on a single tank, though even Toyota admits the 3.3L/100km fuel economy figure was obtained in a lab (as is usually the case) and doesn’t reflect real-world driving.
For reference, on test the Yaris ZR didn’t display a fuel economy figure of more than 5.0L/100km during reasonable standard driving conditions.
The biggest difference between the two MG4 Urban variants is the battery. The Standard Range has a 43kWh battery good for 316km of driving between charging, while the Extended Range gets a bigger 54kWh battery to make it capable of up to 405km.
We didn’t drive the car long enough to get a clear indication of real-world efficiency and range, but it performed well during our drive in suburban Sydney. The steady stop-start traffic gave the battery its best chance to perform well and the early indications are its range is close to claim, at least under the right circumstances. We’ll have to reserve definitive judgement until we’ve had a longer test drive.
What MG was very keen to highlight are the cost savings of buying an EV at a time of sky-high petrol prices. The company made a point that using off-peak electricity, which can be had for just 6c per kW from certain providers, means you can replenish the battery of the MG4 Urban Standard for just $3.44.
A series of factors that make the Yaris an excellent car for the inner-city also happen to make it engaging from behind the wheel.
Its small footprint and relatively low kerb weight are key to this, but it's also built on Toyota’s excellent TNGA platform which, in one form or another, underpins most of the brand's line-up.
It means the Yaris has characteristics that align with other Toyotas - it feels related to a Camry or a RAV4, even if it doesn't behave in the same way physically.
The Yaris is understated in how it behaves on the road during regular driving, quietly switching between hybrid and electric mode, rarely letting the engine get coarse unless you put your foot down for more power.
And while the Yaris isn't quick by any means, there's just enough urgency to get you out of trouble should you need it. It's not a drivetrain that encourages spirited driving, but if you should choose to do so you'll find some surprising capability in the way the Yaris is set up.
Steering that feels light and accurate day-to-day is handy when it comes to steering the Yaris quickly on twisting roads, and the platform underneath does well to keep the light hatch and its short wheelbase in check.
It doesn't feel like it's ready to 'bounce’ off bumps and uneven road surfaces like some similarly sized hatches did even a generation or two ago, and while one wouldn't imagine the Yaris hybrid is choice number one for a weekend driver, there's still fun to be had.
But in urban environments the Yaris is in its element, and its efficient engine and small footprint make it ideal for inner-city traffic and parking.
What really stood out about the MG4 Hatch is its rear-motor, rear-wheel-drive layout, which made it a very dynamic and almost sporty car. In my 2023 review I called it “a genuinely enjoyable small car to drive".
The MG4 Urban doesn’t quite leave the same impression. Again, we had only a brief and (appropriately) urban test drive around Sydney’s beachside suburbs, but the MG4 Urban proved competent rather than commendable.
But, let’s be honest, unless you’re looking for driving thrills in the wrong place (affordable, city-focused hatchbacks) the MG4 Urban does the job it is required to do. It’s as nice as any other mainstream hatch to drive from Point A to Point B.
The ride could be a little softer and more compliant, with the suspension feeling too firm at times, but with its electric motor it’s a quiet and relaxed driving experience. The electric motor provides adequate performance too, certainly more torque in less time than you’ll get in a petrol-powered hatch.
Curiously, MG Australia executives said the MG4 Urban was locally evaluated and tuned but could only offer a vague mention of ‘holistic’ changes to better suit it to local conditions, rather than pointing to any specific Australia-developed changes to the suspension, steering or powertrain.
The Yaris ZR is pretty well stocked when it comes to safety features, more so than the lower variants in the range. Great for the ZR, a bit of a let-down for the others.
It comes with all the necessary kit including auto emergency braking (AEB) with a pre-collision safety system that “recognizes motorcycles and oncoming vehicles in addition to cyclists, pedestrians and vehicles ahead”.
It also has daytime intersection collision avoidance, daytime emergency steering assist, active radar cruise control and lane trace assist, auto high beam, road sign recognition, blind spot monitor, parking support, safe exit assist and a rear parking camera with parking sensors at the front and rear.
The Yaris also has eight airbags, which is a decent count for a light hatch. There are also ISOFIX points on the rear outboard seats.
In 2020 ANCAP tested the Yaris for a five-star result, though that result expires in December 2026 and the testing criteria has since changed to become stricter.
If you’re a driver who prefers minimal technological intervention (read: beeps and bings or the steering nudging you around) the Yaris’ safety kit does a very good job of remaining in the background unless it’s really needed.
It may be small and cheap, but that doesn’t mean MG has cut corners on safety. The MG4 Urban comes equipped with the MG Pilot and a suite of active safety features, including adaptive cruise control, autonomous emergency braking, lane keep assist, blind spot monitoring, driver attention monitoring and speed limit notification.
The latter two are the most evident, as they provide a steady soundtrack of beeps as you drive along. Take your eyes off the road for more than a few seconds as the driver attention system fires up, while the speed sign recognition gets busy in Australia’s ever-changing speed limits.
While MG has undoubtedly improved the sensitivity of some of these systems compared to other models, they are still more active than rival products. Perhaps more concerning, the speed limit recognition repeatedly beeped to tell me I was in a ‘25km/h’ zone, which is simply not a recognised speed limit on Sydney roads.
Like so many other brands, MG needs to further refine these active safety systems in order to make the driving experience more relaxed and less distracting.
MG says the MG4 Urban has secured a five-star rating from Euro NCAP, which is expected to be carried over by ANCAP.
Toyota offers a five-year/unlimited kilometre warranty which covers the Yaris, as well as capped-price servicing for the first five years/75,000km - whichever comes first.
Intervals are 12 months/15,000km for servicing and each costs $250.
If servicing is undertaken at Toyota dealerships, Toyota extends the engine and driveline warranty from five to seven years. It also increases the hybrid battery warranty to ten years “as long as you undertake your annual inspection as part of routine maintenance according to the vehicle logbook”.
There’s also seven years of conditional emergency assistance related to car hire or towing expenses while Toyota is maintaining the car.
The MG4 Urban is covered by the brand’s 10-year/250,000km warranty, as long as you service it at an official MG service centre. If you don’t get your car serviced with the company directly, your warranty reverts to seven-year/unlimited km coverage.
Servicing intervals are every 12 months or 25,000km and will cost you $1366 over the first five years. The cheapest visit is just $149 but the major service, after four years, is a pricey $472, which does push against the idea that EVs are cheaper to service due to less moving parts.