What's the difference?
The Volkswagen Polo is about to turn 30 in Australia but, by 1996, it was already 21-years and three generations old in Europe.
As the least-expensive jumping-on point for the brand here today (RIP VW Up!), the Polo has deftly juggled affordability with the premium pricing that its German engineering demands.
But, at nine-years old, and in an era of newer, hybrid and electric vehicle (EV) and often cheaper alternatives from China and elsewhere, is the ageing Polo as convincing?
We test the mid-spec CityLife to find out.
If you're feeling the cost of living sting, there's a good chance you've scaled back your ambitions for your next new car. You may have even looked at some of Australia's most affordable brand-new vehicles and the Kia Picanto is one of them.
It's one of the few brand-new options left with a before-on-roads starting price of under $20,000 and it's one of the few non-performance models left which can still be chosen as a manual.
It's one thing to be affordable, though, and quite another to be good value - so does the freshly updated 2024 Picanto have what it takes to stack up against more expensive options? Let's take a look.
The VW Polo may be getting old, but it still shines on a number of fronts, including design, interior packaging and presentation, driving sophistication, efficiency and quality.
But, the ride can be too firm and the turbo/DCT lag frustrating, it is also expensive and not fully equipped enough in CityLife grade as tested, undermining the German’s value-for-money equation somewhat.
Haggle hard, though, and you’ll end up with a fine and mature urban hatch.
Australians are moving into ever-larger vehicles when really we should be embracing the small car now more than ever. It's great Kia is still here, with its Picanto showing what can be offered in such a compact form-factor.
While it's not as affordable as it once was, it looks like it won't be long before Kia is the last torchbearer of sub-$20k starter cars. Even so, this is a great choice for buyers on strict budgets.
Still looking good after nearly a decade, the 2026 Polo’s styling was overseen by the same person who created the landmark Mk4 Golf’s interior, and helped shape every existing ID. electric vehicle (EV) in VW’s arsenal, though now he’s with Changan of China.
Anyway, Polo 6’s dimensions were substantially larger than its pert predecessor’s, riding on a shortened Mk7 Golf platform (dubbed MQB A0) that has since also underpinned the very closely related Audi A1 (the circle of life!) and Fabia, as well as Skoda’s Kamiq light SUV and its VW T-Cross cousin.
The obvious upshot of all this growth is generous cabin space (being roomier than the first four Golfs), as well as a very Golf-esque/ID. EV-style dash layout that's inline with the brand’s existing design themes. It pays to be first with the new stuff. Even though some of that tech, like the touchscreen slide controllers and other buttonless nonsense developments, have taken the shine off VW since.
And it would be remiss of us not to mention that there is no sign of the current Polo being retired anytime soon despite its advancing years, with VW suggesting the newly unveiled ID. Polo EV – essentially series number seven – will run alongside with identical dimensions but far greater interior space, to help keep the company cost-competitive in the light-car class.
At this stage we don't know if Australia will even receive the new electric Polo, so the status quo here remains.
You wouldn't know it in Australia, where our collective tastes are orienting toward larger and larger vehicles, but city cars are experiencing something of a golden age overseas.
Cars like the Nissan Sakura, Honda N One, and Hyundai Casper join a long list of others which are design leaders in the city-car segment, and this is why the Picanto needs to look sharper than ever to compete.
Particularly in the GT-Line form we tested for this review, the 2024 car has adopted a dramatic facelift which complies to Kia's incoming and much more science-fiction look, complete with an extremely angular design and frowny LED light fittings.
Around the rear, there's a reworked set of tail-lights with a contemporary strip which almost reaches the whole way across the boot lid, and the new alloy wheels round out the whole aesthetic.
Given this, it's a little disappointing to see how few elements have changed on the interior. From the inside, this Picanto feels basically the same as the pre-update version.
I like the D-shaped steering wheel the GT now gets, and the multimedia screen is great for such a small and affordable car, but all the other switchgear, including the steering wheel is from previous-generation Kia products, and not the shiny new design-led stuff which appears in cars like the Sportage, Sorento, or Niro.
Also, while it's feature-laden all things considered, the interior plastics are mainly the harsh, hollow, scratchy kind. The new digital instrument cluster isn't one big screen, instead it's constructed of a few basic sectors which aren't customisable outside of the background colour. At least the central portion shows some useful information.
The Polo features classic light-car proportions, but typical VW touches largely elevate the experience compared to most rivals.
For starters, because it’s German (though built in South Africa), everything feels high quality, even down to the harder lower-set plastics. Contrasting textures, soft cloth and glossy trim really up the ante. Care has obviously been taken here.
Likewise, the front seat area has been designed to easily accommodate people upwards of two metres tall. Just don’t expect much legroom behind. And the driver’s seat can be set ultra low.
Entry/egress is fine, on typically firm-ish yet highly supportive front seats, as evidenced by a four-hour weekender trip away.
The driver is sat ahead of a solid, stylised console angled slightly for a heightened connection to the car, aided by an excellent operating position offering ample reach/rake steering adjustability. Most people should settle in very nicely behind the handsome wheel here. Vision is fine but many competitors do offer deeper side windows for better sightlines.
The updated multimedia system at last brings a volume control, the touchscreen is positioned high for easy access, with crisp graphics and instant responses, and the switchgear have a quality feel to them. And while CityLife’s climate-control slider actuators are nobody’s favourite, this one works as intended. Cheaper grades have basic dials.
Smallish twin cupholders won’t please American-sized drink-holder expectations, but otherwise the Polo’s storage options are plentiful and generous. So is the ventilation output and reliable wireless connection for the Bluetooth phone and Apple CarPlay media, never dropping out once during our entire trip.
Rear-seat room is down basically to how far back the front seats are, but for a car of this size the Polo’s more than fine.
A sufficiently comfy backrest and fixed, sculptured cushion mean this isn’t misery, aided by another helping of the appealing material finishes found up front, as well as the extra side window that makes it feel a little bit airier than many others. And while there are no face-level air vents, the large dash outlets provide enough flow through.
But the lack of a centre armrest means there are no cupholders, so occupants must rely on the (albeit deep) door pockets. At least VW bothers to provide two USB-C ports, a pair of map pockets and big, grippy door handles as a make-do.
Finally, the easy-to-load and quite hungry boot area is big for such a small car and some 25 per cent larger than the previous Polo, offering from 351 litres with the twin backrests in situ to 1125L dropped, and that’s with a space-saver spare wheel underneath the floor.
Feeling a little old or not, the Picanto has a clever interior which makes the most of its limited dimensions.
There are huge bottle holders in the front doors, a further two with little flip-out sectors which sit below the air-con controls. These holders can be folded away to turn this space into a tray for the storage of large objects. There's even a centre armrest console box, but it's tiny.
On the topic of air-conditioning controls, these are, refreshingly, physical dials, which are increasingly going missing as manufacturers move such functions to touchscreens. The Picanto keeps things manual though, even including a volume and tuning knob for the touchscreen, with physical shortcut buttons adorning the bottom section of the frame.
Physical controls is something Hyundai Group has committed to, and it's not until you use a vehicle without them you realise how essential they can be.
Despite its tiny footprint, there's also plenty of room in the cabin for an adult my size (I'm 182cm tall). I felt as though there was massive airspace between my head and the roof, as the Picanto's seats let you sit nice and low to the ground, and while it's limited in its width, it feels like I had enough room and adjustability for my legs.
Only one area brought me discomfort and it was the elbow-rest in the door. Sounds silly, but while the GT-Line has a little synthetic leather strip here, for some reason it has no padding, so it's seemingly for aesthetic purposes only and is still an uncomfortable place to rest your elbow on longer journeys.
It sounds unlikely, but I fit behind my own driving position in the back seat, with my knees almost up against the back of the front seat. Thankfully, the seat backings are softly-clad so even if you were slightly taller than me it might be ok.
Again, headroom is sufficient, and the seats are reasonably comfortable in the outer two positions. There are no amenities in the back seat. Rear passengers don't get air vents, door pockets, or a drop-down armrest in the centre position. There is only a small pocket on the back of the passenger seat. Can't say it would be the best space for longer journeys, but it fits adults for short city trips.
The boot measures 255 litres. It's small enough it may rule the Picanto out for some family buyers who need to wrestle with a pram or some such. The boot is large enough to fit either the largest CarsGuide luggage case on its own, or the two smaller ones, but absolutely not all three. It may surprise you to learn there is enough room under the floor for a space-saver spare wheel.
Four Polos are available in 2026. The Life starts from $30,990 (all prices are before on-road costs unless otherwise stated), CityLife from $32,790, Style from $34,990 and GTI from $41,990.
All, bar the range topper, use a 1.0-litre three-cylinder turbo-petrol engine dubbed 85TSI, leaving the 2.0-litre four-pot turbo solely for the hot-hatch flagship. An automatic transmission is standard across all models, with no manual availability, unfortunately.
Every Polo comes with LED headlights, adaptive cruise control, an 8.0-inch touchscreen with reverse camera, wireless Apple CarPlay/Android Auto, DAB+ digital radio, electronic instrumentation, smartphone charging, four USB-C ports, parking sensors and alloy wheels (with a spare wheel, thankfully).
Now, the CityLife is essentially the quite plain-Jane Life, but with welcome extra gear you’d expect at the Polo’s lofty base price, including keyless entry/start, climate control air-con, automatic parking assistance, tinted side windows and 16-inch alloy wheels.
The rear cross-traffic alert, blind-spot monitor and matrix LED adaptive headlights safety tech are alone worth the $2200 jump to the Style (again, they ought to be included at this level), which also adds more glamourous instrumentation, glossier trim, sat-nav, multimedia gesture control and fancier wheels that at least inject a bit of upmarket flair.
Never the cheapest in its class, the Polo has long had to rely on notions of next-level quality, engineering prowess and brand cache to make its value-for-money arguments in Australia stick.
Which in some ways is easier today than a decade ago, since so many light hatch rivals from back then have disappeared from the scene – including the Ford Fiesta, Holden Barina, Honda Jazz, Kia Rio, Nissan Micra, Peugeot 208 and Renault Clio. Seriously, we miss them.
Fewer traditional competitors then, yet every remaining direct rival in near-equivalent CityLife specification costs less, some significantly so.
They include the MG3 Essence from just $24,990 drive-away (and even the Hybrid+ undercuts the VW from $30,990 drive-away), Mazda2 GT from $28,490, Suzuki Swift (mild) Hybrid GLX from $31,490 drive-away, the closely related Skoda Fabia Select from $32,390 and Toyota Yaris SX Hybrid from $32,390.
Chinese EVs at or under the same price as the VW include the BYD Atto 1 in longer-range Premium guise from $27,990, the next-size-up BYD Dolphin Essential from $29,990 and GAC Aion UT Premium from $31,990.
Finally, while scores of small SUV alternatives exist, most of the cheapies from China are simply not good enough, except for the (albeit still patchy) BYD Atto 2 EV from $31,990.
On the other hand, worthwhile options from elsewhere include India’s Mahindra XUV3XO in higher-spec AX7L from $26,990 drive-away (bargain!), Romania’s Renault Duster Evolution from $31,990, South Korea’s Kia Stonic Sport from $32,290 and Japan’s Toyota Yaris Cross GX Hybrid and Mazda CX-3 Evolve, from $31,790 and $32,400 respectively.
With opponents like these, it’s little wonder that VW only sold 934 Polos last year against 15,429 CX-3s.
Value just isn’t the CityLife’s strong suit.
Every dollar counts here, which is why it is disappointing to see the Picanto continue to claw up the price-scale for this update, but it's not in a major way, and it's still one of few options left in this price-bracket at all.
In fact, it is the only option aside from the MG3 Core, which can be had in automatic form at $19,990 drive-away and even then this car is set to be replaced later this year with a bigger and more expensive new-generation, so the Picanto may well be the last bastion of sub-$20k affordability in Australia.
Now keep in mind, these are before-on-road costs, so it's likely if you can have any Picanto under $20k by the time you get it on the road, it's probably going to be the base model Sport Manual, which starts from $17,890.
From there, you can add an automatic gearbox, pushing it to $19,490, or you can upgrade to the GT-Line which is the car we have for this review, which costs from $19,690 for the manual as-tested, or $21,290 for the automatic.
A small spread of relatively affordable prices in this market then, but what's in the box? As it happens, more than you might expect.
Standard stuff in 2024 has increased on the base Sport grade to include 14-inch alloy wheels (in place of the previous steel wheels with hubcaps), as well as a leatherbound steering wheel and shifter (up from the previous plastic-clad ones), and a 4.2-inch digital instrument cluster replaces the analogue dials.
Meanwhile, the GT-Line scores a D-shaped steering wheel and new 16-inch alloy wheel designs, and the updated and more aggressive face is highlighted by LED light clusters. In addition, the GT-Line scores USB-C outlets on the inside, synthetic leather seat trim, and both grades maintain the 8.0-inch multimedia touchscreen with wireless Apple CarPlay connectivity.
Feels like a lot more car than it appears from the inside, especially since it comes with most of today's expected active safety tech, too, which its main rivals, the MG3 and Suzuki Ignis, have never been able to claim.
The 85TSI is a 1.0-litre three-cylinder turbo-petrol engine, with direct injection and a start/stop system designed to save fuel.
That said, this EU6 emissions-rated unit provides a healthy 85kW of power between 5000-5500rpm, as well as 200Nm of torque from 2000-3500rpm.
It drives the front wheels via a seven-speed dual-clutch transmission (DCT) VW brands DSG, while other markets enjoy the option of a six-speed manual.
The official 0-100km/h acceleration time is 10.4 seconds, on the way to a top speed of 200km/h.
This is another area where the Picanto is feeling in need of a little innovation. It has the same very dated 1.2-litre four-cylinder petrol engine as the previous car, producing a sufficient but not exciting 62kW/122Nm.
It drives the front wheels via an equally old four-speed automatic transmission, or as tested, a five-speed manual transmission.
It's better with the manual if you can drive one, and a bit of a win for first time or young buyers who will still have the option to learn to drive one, so points there.
The EU6-rated Polo’s ADR 81/02 lab-tested average combined fuel consumption figure is 5.4 litres per 100km, for a carbon dioxide emissions average of 123 grams/km.
Brimming the 40-litre tank with premium unleaded petrol (95 RON minimum is recommended) should result in about 740km between refills.
We managed a respectable 5.9L/100km driving over 605km with the distance-to-empty still showing 85km remaining, while the trip meter’s long-term average read 6.1L/100km.
An older engine and transmission combination makes for a less than impressive fuel consumption figure in today's market, but then the Picanto is a very light car, so it has lower fuel consumption than most of its contemporaries regardless.
The official fuel consumption on the combined-cycle test of the five-speed manual we tested is 5.4L/100km, and in our week of what I would consider fairly combined usage our GT-Line drank 6.0L/100km. Not great when you consider a much larger hybrid Corolla can use less fuel, but pretty close to the claim nonetheless.
The Picanto has a 35-litre fuel tank – enabling a theoretical driving range of 648km – and happily drinks base-grade 91RON unleaded fuel.
It is quite astounding how VW manages to maintain a consistency throughout its model range, from Polo to Touareg, and the CityLife’s 85TSI DSG is no exception.
Press the starter button and you’ll barely discern the engine as a three cylinder, so effective is the sound deadening. Slot the satisfyingly normal gear lever into ‘D’ and, depending on your expectations, what comes next seems either a tad frustrating or impressively lively.
Let’s explain this more.
As with almost all turbo/DCT applications, there is a moment’s hesitation due to the turbo spooling and gears meshing up. If you’re rushing to merge with fast motorway traffic or turning at an intersection, the acceleration can feel like it needs forever before the car lurches into action and you’re on your way. Every single time.
Yet, in every other circumstance, the 85TSI is a lusty and lively machine, stepping away eagerly and smoothly under moderate throttle input, with the speed then instantly piling on as the engine’s revs reach towards the 5000rpm sweet spot, accompanied by a throaty exhaust note.
Combined with the ultra-fast ratio changes that the DCT is famous for, this is when you’d call the Polo enjoyably rapid, offering instant response for quick and easy overtaking. And all the while, the powertrain feels and sounds silky-smooth.
We noted that the adaptive cruise control betrays the VW’s age, since it can maintain varying speed with traffic flow, but once fully stopped, it requires the driver to keep a foot on the brake pedal to keep it from releasing and creeping forward (or backward on a hill). Nowadays, most newer systems stay stopped until traffic moves on again. It’s a surprise that the company did not update this with the Polo’s 2022 facelift.
The steering, though, feels state-of-the-art. A real treat, it is precisely weighted and beautifully tactile, for immersive, controlled cornering agility and feel over an impressively broad range of speeds and environments.
On smooth roads the 85TSI’s dynamic fluency is lovely, with the front end working with the keen driver while also providing reassuring grip and control. Yet it’s also light and easy enough to fit in tight spots, or zig-zag through traffic, making it an ideal urban runabout.
After a seemingly endless run of (especially Chinese) EVs and hybrids serving up dull and detached steering, the Polo’s nuance and finesse is a total breath of fresh air. VW, please don’t lose this ability.
The same also applies to the advanced driver-assist systems (ADAS) tune, which works quietly yet effectively in the background without jarring interference. The Polo feels light years ahead here as well.
But a bit more suspension comfort is required when the roads get rough.
Isolating and cushy on the smooth stuff to the point it feels like a luxury car, the suspension starts transmitting bumps and lumps when the bitumen turns bad, breaking the seamless flow of an otherwise accomplished chassis tune. It can also become a bit vocal over coarse bitumen, due to road and tyre noise intrusion.
Otherwise, the 85TSI is a slick and accomplished drive, with a quiet ride and long legs for easy, long-distance cruising.
Just like every other new VW.
You've got low power, a pretty low-tech engine and transmission, but this little Kia is still great fun to drive.
For a start, you can have it as a manual that lets you wring the best out of the little engine, which is easygoing but lacklustre with the four-speed auto.
To be clear, it's not a great manual - usually when you get a brand new manual in 2024 it's one of those fancy performance ones with nice damping and notchy gates, but as simple as it is, it also gives the car a raw mechanical nature which keeps it engaging to drive. There are real consequences for choosing the wrong gear and it takes a touch of skill to get used to, a lost art of the all-encompassing drive which is a welcome change of pace compared to a lot of cars today.
The Picanto also has keen steering helping the organic feel, and it has a firm ride, too, which makes it surprisingly sporty in the corners, but it's lightweight nature and firm suspension gave it a crashy and bouncy feel on some of the inconsistent Sydney streets I exposed it to.
It's also a bit noisy in the cabin, both in terms of engine noise (you have to rev the thing to get it going) and tyre roar on anything but the finest tarmac. This issue increases with your speed, and reminds you of its city-car intention when you're on the freeway.
Still, the city is where it's best suited to, and it's a joy to easily dart down alleyways which take a degree of caution in the usual mid-size SUVs you see around the place, and the fact you can park it anywhere can be a real blessing.
The visibility is great, too, which means multi-lane situations aren't a nightmare, and the full suite of manual adjustment for the stereo and air conditioning are super easy to use when you're on the go (who has time to adjust a touchscreen when you have a manual transmission to worry about?)
In conclusion then, the Picanto isn't to be underestimated. This is a spritely fun little thing which makes the most of its limited hardware, but it truly is best suited for the confines of a city, and gets less impressive as you get it out on the open road.
Tested in 2022 after the Polo’s mid-life refresh, it achieved a five-star crash-test safety rating.
Standard safety features include autonomous emergency braking (AEB, operational from 4km/h to 85km/h and with cyclist and night-time operation), low-speed manoeuvre braking (up to 10km/h), lane support systems (between 60km/h and 240km/h), lane departure warning with steering assist, driver fatigue monitor, parking sensors and full-airbag coverage.
However, for rear cross-traffic alert and blind-spot monitor, you’ll need to pay more for the Style (or GTI), when more modern alternatives offer these inclusive at the CityLife’s price point.
A pair of ISOFIX points as well and a trio of top tethers for securing child seats are fitted to the back seats.
The other great thing about this Picanto is its surprisingly thorough suite of active safety items. It gets auto emergency braking, lane-keep assist and lane departure warning, as well as blind-spot monitoring and rear cross-traffic alert.
Again, its limited array of rivals like the MG3 and Suzuki Ignis can't compare.
The Picanto has an array of six airbags (dual front, side, and curtain), although it is not currently rated by ANCAP.
The Polo comes with an industry-standard five year/unlimited kilometre warranty, as well as one-year’s free roadside assistance.
This can be extended annually if serviced at a VW dealer. Service intervals are 12 months or every 15,000km.
VW also offers a pay-as-you-go capped-price servicing program. For 2026, prices have been reduced over the previous year, coming in at $425, $681, $407, $1037 and $407 at the time of publishing.
Alternatively, buyers can prepay for a three or five-year service pack to save a bit more money. Three years costs $1507 and five years is $2799.
Note, however, that a Toyota Yaris SX Hybrid equivalent costs about $250 annually to service, or around $1250 over five years.
Finally, there are about 100 dealers or agents throughout Australia offering servicing and mechanical repairs.
Kia's stand-out seven-year/unlimited-kilometre warranty isn't as stand-out as it once was, but is still the standard to beat for this segment, and is especially impressive considering the up-front cost of the Picanto.
You also get seven years of roadside assist included and a seven-year capped-price servicing program.
Over those seven years the price averages out to $438 annually, which is not as cheap as it could be, especially considering many Toyotas cost about $250 a year to keep on the road for their (shorter) warranty period.
The Picanto needs to visit a workshop once every 12 months or 15,000km, whichever occurs first.