Look out, Kia Picanto! Tiny Suzuki hybrids could be on the way to be crowned Australia's cheapest cars and take the place of the old MG3

Is Suzuki planning a global entry-level mild-hybrid city car in the near future?

Could we be looking at a part-electrified five-door hatchback with a starting price of around $20,000, to effectively take the place of the bestselling old-shape MG 3 in Australia?

The Japanese Kei-car (and motorcycle) giant could be turning its unique talent for affordable yet high-quality engineering into a hybridised supermini – complete with international appeal.

While nothing has been confirmed, it's believed that Suzuki is exploring possibilities for Kei cars in other markets.

“I’d love to bring Kei cars in,” was Suzuki Australia General Manager, Michael Pachota's response to CarsGuide at last month’s redesigned Swift launch in Melbourne.

Pachota went on to name several candidates that he thinks could gain traction in Australia, starting with the latest Alto from Japan (and not the version by Maruti in India) – a series that helped establish the brand locally in 1981 as the “Hatch 800”, though later generations from the 1980s through to the mid-2010s wore the Alto nameplate.

“I can see at least five of the Kei cars that are available overseas that would fit into this market, as both private and as commercials,” he revealed.

“Specifically like the Alto available in Japan at the moment. It’s a lovely little car, and it could do really, really well in this market.”

Measuring in at under 3.4 metres long and 1.5m wide while standing at just over 1.5m tall (all to comply with Japan’s ‘Kei’ car tax, insurance and other ownership benefits), today’s Alto debuted in late 2021 and is the ninth iteration since 1979.

In contrast, Australia's sole sub-$20K new car nowadays, the Kia Picanto from $17,890 before on-road costs, clocks in at 3.6m by 1.6m by 1.5m respectively, and actually sits on a 60mm-shorter wheelbase.

The 0.7-litre inline three-cylinder petrol engine is paired with a mild-hybrid electric motor, integrated starter generator and low kerb weight, which is said to result in especially perky performance as well exceptionally-low fuel consumption.

It is also possible a larger-capacity powertrain option might be made available for export markets. And, fun fact, Suzuki supplies its Kei for other brands under various model-sharing agreements, with the Alto also wearing Mazda Carol badges since the late ‘80s.

Another candidate is the Hustler, which is a crossover/SUV take on the Kei car and not a sportier version of the Hillman Hunter from the early 70s. With styling themes nicked from the Jimny 4x4 and turbo performance, the visual connection with the latter might make it a hit in Australia too.

“Then there’s also the Spacia Gear (a boxy, van-like – and therefore roomier – take on the Kei car theme designed either for families or commercial-vehicle use) … and Wagon R (aimed at more-conventional small-car buyers, it comes in both progressive or retro ‘Smile’ style – yes, the market in Japan is that broad for such variations),” Pachota added.

“And fair enough, they’re just 660cc in engine size. But some of them are turbocharged with hybrid specifications. They’re fantastic little cars, with auto stop/start and good emissions too.”

So, are the days of larger Suzuki models like the Ignis and Swift slipping in underneath the $20,000 barrier in Australia over?

“At this stage, yes,” Pachota admitted. “Because we just don’t have a car that fits that price point. And with the technology that is necessary in vehicles these days, it would be hard to get a car underneath that price point, and if it is, it won’t have the technology that you want based on that expectation.

“We’ve seen some players in that space, and a lot of customers are moving out of vehicles that are not technologically advanced in the sub-$20K market.”

With Mitsubishi shelving plans for its eK X all-electric Kei car for Australia on the grounds of expected high prices, going down the cheaper hybrid/petrol route with vehicles like the Alto, Hustler, Wagon R and Spacia might be where the action is for Suzuki.

Watch this Spacia… err, space.