Are these cars still relevant? How Chinese electric cars like the MG4, BYD Dolphin and GWM Ora are breathing new life into Australia's small car segment as the Hyundai i30 and Volkswagen Golf falter
By Tim Nicholson · 14 Dec 2024
Just when you thought utes and SUVs were about to completely take over Australia’s automotive scene, small cars are making something of a comeback.And it’s not the usual suspects like the Toyota Corollas and Mazda3s of the world that are bumping up interest in small sedans and hatchbacks. It is also electric cars.According to official year-to-date sales data to the end of November this year, small-car sales are up by 12 per cent compared with the same period in 2023. While that doesn’t sound like a massive increase, it represents the biggest percentage increase out of any SUV or passenger car segment.So what is driving this interest in smaller models? A couple of factors it turns out.The biggest contributor to the rise in sales is the influx of electric cars to the segment. Previously, the only electric small car was the Nissan Leaf which, while it was a pioneering EV model, never sold in huge numbers.Now there are a trio of EVs boosting the segment. The biggest selling small EV in Australia, by some margin, is the MG4 hatch. With 6079 sales, an increase of 140.6 per cent to the end of November, the MG4 is also the fifth best-selling small car.Sharp retail deals on model year 2023 MG4s, including a limited $30,990 drive-away price on the entry-level 51 Excite, helped boost interest in the Chinese-built EV.Another couple of small Chinese electric hatchbacks that are selling well include the BYD Dolphin which has found 1885 homes so far this year, an increase of 174 per cent over 2023.The GWM Ora has also nabbed 1182 sales, up by 175.5 per cent year on year.Two small EVs have seen sales drops, like the Cupra Born which has dipped by 47 per cent to 439 units, as well as the Nissan Leaf, which is down by 30.5 per cent, but that model is in runout in Australia following the end of UK production earlier this year.While EVs are doing the heavy lifting in the resurgent small-car sector, traditional internal combustion engine (ICE) small models are doing their part too.After a serious sales blip due to stock issues, the Kia Cerato is having a bumper year, with sales up by 187.5 per cent to 14,807 units, making it the second best-selling small car behind the dominant Toyota Corolla.The Cerato result is interesting given this generation went on sale in mid-2018. It is also now in runout ahead of quarter one, 2025 launch of its replacement, now dubbed the K4.The Corolla is also having a good run this year with 22,526 sales (up by 24.5%), ensuring a likely top 10 placing in the overall make/model sales chart. The Mazda3 is also in positive territory, up 13 per cent to 9618.A couple of other famous nameplates have seen sales declines, like the Hyundai i30 (11,616, -40.7%) and Volkswagen Golf (2593, -22.6%).At one point in history small cars made up one of the largest sales categories, but now with a 7.7 per cent slice of the overall market, it trails medium SUVs, 4x4 pick-ups, small SUVs and large SUVs.From 2011 to 2015 small cars ruled the top spot of the sales charts in Australia, with the Mazda3, then the Toyota Corolla taking top spot, before the Toyota HiLux ute came along and changed the face of the new-car market in 2016.