Small Cars

In the current economic climate, a small car that can only comfortably fit two adults and gets 11.4L/100km on a test drive seems utterly unsensible.But the 2026 BMW M2 CS was never meant to be sensible, was it? Even in the stable of bonkers BMW M cars, the M2 CS is arguably the one that most fits into the category of ‘fun over function’.The M3 has four doors, the M4 has more space and the M5 is half-EV these days. And while the M2 is silly fun, the M2 CS is serious fun.The 353kW of the regular M2 becomes an intimidating 390kW when adorned with the extra two letters, standing for Competition Sport by the way, and paired with 650Nm the two-door rear-driver is capable of a 0-100km/h sprint in a claimed 3.8 seconds. That thrust goes on to 302km/h, if you’re brave enough to find out, rather than just 250km/h.This is all, of course, thanks to a twin-turbo 3.0-litre six-cylinder engine, code S58 in the M2’s case. BMW hasn’t given up the in-line six game just yet.It runs power to the rears via an eight-speed automatic transmission, which is unfortunately the only transmission available in the CS. The standard M2 has the option of a six-speed manual, but the ol’ DIY shifter apparently isn’t up to the extra 100Nm of torque the CS’s engine is putting out. Even the auto ‘standard’ M2 gets 600Nm, splitting the difference.More changes to the M2, then, come in the form of a set of staggered gold wheels - 19-inch by 9.5-inch fronts and 20-inch by 10.5-inch rears. The ducktail boot lid is a much-appreciated touch for some more flair. And at the other end the vents and an effectively open kidney ‘grille’ mean a wayward rock could probably do some nasty work on the cooling system.A carbon-fibre roof and bonnet go some way to helping lower not only the weight, but also the centre of gravity, with the CS coming in at a 1775kg kerb weight compared to 1805kg in for standard M2. The CS is also slightly longer (by 7.0mm) and its suspension slightly lower (by 8.0mm) according to BMW’s specs.Inside, the CS affords you less than you might want in the way of comfort if this is to be your main mode of transport. No proper central armrest along with extremely bolstered, rigid carbon sports seats (with leg mouldings) and no real storage save for a phone charging pad or the bottle holders in the doors mean the M2 CS doesn’t quite work as a daily drive.All this means an extra $44,800 at the dealership, for a price tag of $172,900, before on-road costs. Carbon fibre and extra power ain’t cheap, unless there’s also something special about those CS badges…Oh, and our test car is fitted with carbon ceramic brakes, so there goes an additional $19,000.It’s a price that demands as much attention as the CS does to look at, especially in this 'BMW Individual Velvet Blue Metallic' paint over those 'Gold Bronze' wheels. But is it as special from behind the other important wheel?Peak power comes in at 6250rpm, while the optimum torque band is between 2750 and 5730rpm. It means for most of the time you’re not short of nudge, and even if you’re already making expeditious progress along your road of choice, there’s almost always more pace at hand through most of the rev range.While it might feel a shame there’s no manual option, you’ll quickly find yourself engaged enough without involving a third pedal. Of the many settings available to toy with, something that’s easy to adjust is the aggression of the transmission thanks to the 'Steptronic' button on the shifter. Using the paddles, or using the shifter itself if you want to feel a little more manual, is almost always my preferred method to letting the automatic decide for itself, but in the right settings the CS’s eight-speed does fine on its own.Even in too-high a gear, the sheer torque available means the 1775kg coupe bursts out of corners with plenty of aggression, though the CS’s manners don’t leave you feeling intimidated.While small BMWs of the past have been lairy, wicked little things - the 1M had a reputation for being quite persistent about trying to leave the road - the M2 CS’s bite isn’t directed at the hand that steers it.On capable Michelin Pilot Sport 4S tyres, which suit road driving better than stickier Cup tyres that hate a damp surface, the M2 CS provides plenty of accurate feedback and reacts receptively to inputs in a manner that belie the way the thing looks and sounds.In its most aggressive settings before you start getting into track modes and safety-off areas, the M2 doesn’t even wag its tail through corners where you might have expected the previous generation car to. And even though its suspension is stiff there’s enough give to let the driver sense the limits of mechanical grip.While the CS exudes ‘playful puppy’ energy, the true attitude of the car is well-trained. If you wanted the M2 CS to really let loose, you could make it happen, but it’s not likely to happen by accident if you’re half-capable behind the wheel.The carbon ceramic brakes fitted to this test car also mean pulling up quickly in an emergency without needing to worry if the brakes have faded from previous hard driving, though in most cases on the road they’re probably overkill.The steering feedback is succinct, and while there’s more road surface information communicated through the seat that you might want from a daily driver, the combination in concert with the front wheels means you’re rarely guessing how to attack a corner.On that, the M2 CS is arguably more comfortable than you’d expect, but for the vast majority of people it would be optimistic to think of this car as suitable day-to-day transport. I’m 31, don’t have bad joints, and have spent most of my career in sports cars, and I reckon I would get a bit tired of the feeling of these seats after a couple of months. If someone says otherwise, they didn’t spend enough time living with it.

The GAC Aion UT Luxury is the top-spec of a two-tier launch range for the new Chinese hatchback.Rivalling the BYD Dolphin, GWM Ora and MG MG4 it is still relatively good value, starting from $34,990, before on-road costs.It includes all the impressive kit from the base Premium grade car like 17-inch wheels, a 14.6-inch multimedia touchscreen and 8.88-inch digital dash, synthetic leather interior trim, power adjust and heating for the front two seats and a heated steering wheel, whilst also adding a panoramic sunroof, power tailgate, ventilation for the driver's seat, a wireless phone charger and auto folding powered wing mirrors with an auto dimming central mirror.Wireless Apple CarPlay and Android Auto are also standard alongside over-the-air connectivity and built-in navigation.The Aion UT Luxury is powered by the same 150kW/210Nm front-mounted motor as the base Premium and offers the same 430km (WLTP) range from its 60kWh battery pack.The interior is relatively spacious even for a car in this class with ample front and rear room, although it comes at a cost to boot space which is a less impressive 321 litres.Vehicle-to-load (V2L) is standard, allowing the battery to charge and/or power external devices but there's no spare wheel in the Aion UT range.GAC covers its cars with an eight-year and unlimited kilometre warranty, with the battery covered form the same time but 200,000km distance.

They cost too much. They cause range anxiety. There aren’t enough chargers.There is still a lot of negativity and anxiety around electric vehicles (EVs) and it has kept sales at approximately 10 per cent of the market for several years now. There have been attempts to increase sales of EVs from both the car makers and governments around the country, but regardless the sales have always hit that invisible 10 per cent cap, more or less.But that could be about to change. In fact, if it doesn’t change in the very near-future, we may be waiting a decade or longer before EVs truly become mainstream.Put simply, if EVs are to take a leap forward in terms of sales, it’s now or never (or at least, now or in the distant future).That’s because interest in EVs (and hybrids) have never been higher as fuel prices have spiked since the US and Israel began the conflict with Iran, which has had a major impact on the price of oil and the global supply chain.It has also raised the questions of Australia’s fuel security, with local refineries not currently capable of producing fuel to the same standards as the fuel we import.Geo-politics aside, Australian motorists are simply feeling the financial pain at the pump with unleaded over $2.50 per litre in much of Australia and diesel above $3 per litre and running low in supply in many areas.Searches on CarsGuide classifieds for EVs rose 230 per cent since petrol prices spiked, while searches for hybrids are up a whopping 943 per cent. Autotrader is reporting a 631 per cent jump in people searching for a new EV to buy, with a 221 per cent increase in those looking for a hybrid.Obviously these search results won’t translate to a one-for-one sale increase, but the next few months will be telling for how much Australians are willing to embrace EVs to save at the pump.Skoda happened to launch more-affordable variants of its Enyaq and Elroq EVs in mid-March, which is seemingly perfectly timed to take advantage of the current trouble times. But Skoda Australia director, Lucie Kuhn, cautioned about getting too excited too quickly on a potential dramatic sales shift towards EVs.“Maybe short term, if you're speaking about the conflict in the Middle East, of course it triggers the customers if they shouldn't start considering an electric vehicle as their future car,” she said.“If increased interest will last to such an extent, I think it depends how long the crisis will take.“But already before it has happened, we observed that out of this, in the market 65-70 per cent of customers are still driving combustion .I think already 70 per cent out of them consider, for the next purchase, to start thinking about the electric vehicle.“It doesn't mean that they will necessarily buy an electric vehicle, but they give it a serious thought and we observe that. Many customers in spite maybe in the end go for a combustion engine or maybe for the PHEV as an interim step, they at least consider having and purchasing an EV.” But what this fuel crisis may do, is get those people who have considered an EV or hybrid previously but hesitated because of the above-mentioned concerns about price, charging or range anxiety.The reality is EVs are now on-par, or in some cases cheaper, than petrol or diesel models. For example, the new MG4 Urban EV is cheaper than the similar-sized Toyota Corolla Hybrid. That doesn’t mean all EVs are cheaper than petrol or diesel equivalents, but the criticism that EVs are for “snobs that live in the eastern suburbs”, as NSW Premier Chris Minns said recently, is simply not true.Range anxiety feels like a hangover from the earlier EVs, which had less than 200km of range and needed regular charging. Most EVs on sale today are capable of 300km or more, which means a weekly charge is most likely what’s required for the majority of Australian motorists.While the concerns over the lack of public charging infrastructure is also overblown in the minds of many, with more than 1250 spread across the nation. Are there as many EV chargers as petrol bowsers? Of course not, but given the current rate of EV sales growth, the public network is growing accordingly.If you live in an urban area, there is likely to be several public chargers available, assuming you don’t have off-street parking so you can’t simply charge at home (which many Australians are capable of doing). So if you look beyond the anti-EV sentiment and put your prejudices aside, the reality of actually owning an EV is starting to look more and more appealing. They are increasingly cost-effective and help Australia wean itself off foreign oil dependency, so it’s a win-win in many respects.No, they still aren’t for every or every market (electric utes are likely to remain as popular as a steak at a vegan restaurant) but for many, namely those in urban areas, now might be the ideal time to make the switch. Whether they will or not remains to be seen.Fuel prices began to increase at the very end of February and March sales date won’t be available until after the Easter long weekend. Even so, March figures aren’t likely to show the full extent of the potential switch to EVs and hybrids. Instead, we will have to watch closely in the coming months to see if the current crisis has a significant and lasting impact on the popularity of EVs in Australia.

Last year saw a paradigm shift in Australia’s new-car market.The introduction of the government’s New Vehicle Efficiency Standard (NVES) catapulted Australia’s emissions regime from the 1980s into the 21st century, and many brands began re-thinking their line-ups in Australia as the clock started on tough fines.Perhaps the biggest and most unprecedented change was the rise of the BYD Shark 6, which pretty much single-handedly proved the dual-cab ute class can be electrified, while the Chinese juggernaut stormed its way up the charts, helping to permanently re-shape the make-up of Australia’s favourite automakers.In the first months of 2026, the shift has continued. China has now become the number one source of new cars to Australia, finally taking over from Japan and Thailand.But what can we expect to look back on by the end of this year? What will change and how will your new car buying experience be re-shaped?Making predictions is always dangerous, but with another fuel crisis hitting hard, we can be fairly certain of at least a few outcomes — let’s see what we think.The dawn of the diesel-hybridChery’s headline-grabbing news from the past few months has been the confirmation of its upcoming diesel hybrid ute, codenamed KP31, for Australia.The upcoming and much-hyped Chery ute will bring what many buyers are asking for - diesel capability with plug-in hybrid fuel consumption.We know more about this upcoming ute thanks to its reveal in China under Chery’s commercial arm, Rely.It will use a new ground-up ‘Kaitan’ platform, and will maintain solid links to the axles - more like GWM’s Cannon Alpha PHEV than the BYD Shark 6.It will also be hoping to seize on the plug-in hybrid ute trend, which BYD has kick-started, and many of its rivals are now seeking to emulate. Whether the extra capability and allure of diesel is enough to make it the next hot thing in dual-cabs remains to be seen.More storied automakers will look to China for helpNissan has made it fairly clear that it will look to China for help, with its appealing range of Chinese-built vehicles benefitting from Chinese hybrid and EV know-how and rapid development cycles. The latter, which has become known as ‘China Speed’ in the industry, will cut the time it takes to do things that once meant long waits, like the conversion to right-hand drive and the various changes required to meet compliance regulations in obscure markets like Australia.No doubt Nissan’s most sought-after Chinese-built model will be the Frontier Pro plug-in hybrid dual-cab, long suggested by executives to be an emissions-friendly alternative to be sold alongside the Mitsubishi Triton-based new-generation Navara in the Australian market.Nissan’s Chinese portfolio doesn’t end there. The brand also has an array of well-received-in-China electric cars, including the N7 sedan and upcoming NX8 SUV as ideal replacements for its ageing Pathfinder, and NVES-friendly supplemental models to the hybrid X-Trail and Qashqai.Nissan certainly isn’t the only brand that might be forced to turn more to China to bolster its line-up. Ford, facing a particular cliff with NVES in the coming years thanks to its diesel-heavy sales footprint of Rangers and Everests might need to import cars like the Chinese ‘New-Energy’ plug-in hybrid Ford Bronco (related to the American Ford Bronco in design only) as a more appealing emissions-friendly option for its more adventure-curious buyers.Even Toyota, whose line-up is already heavily hybrid may need to turn to its Chinese joint-ventures for more price-sensitive zero emissions models like the GAC Aion V-based bZ3X which was recently announced in right-hand drive for the Hong Kong market. Watch this space.The top-10 will continue to be re-shapedAt the end of 2025 there were three Chinese brands in the top 10 in Australia: GWM in seventh position, BYD in eighth position, and MG in 10th.Already in the first few months of 2026, this ranking has continued to shift. BYD has already unseated GWM as Australia’s favourite Chinese brand and has vaulted Mitsubishi, landing in sixth position through the first two months of the year.This puts it within striking distance of Hyundai in a tightly contested race for a top-three position (there are less than 1000 sales between Mazda, Ford, Kia and Hyundai in the next four positions below Toyota), which BYD bosses bravely predicted for 2026.GWM is holding position in seventh, but Mitsubishi might not be able to hold it at bay for long.Chery is one to watch in 2026, as it has managed to leapfrog MG and clinch eighth position so far this year.Other more recent arrivals from China also have brave top-10 predictions. GAC could be the next brand to leap up the charts following in the footsteps of its contemporaries. While it may seem farfetched now, the Toyota-allied brand has access to the right products at similarly aggressive prices, with hybrids and plug-ins featuring heavily in its line-up, which the brand recently told CarsGuide is set to include a large SUV and ute before long.China-owned MG, too, will be playing defence, launching a range of more affordable vehicles as it looks to hang on to its top-10 position.Thailand is down, but not outThailand at various times has been one of the locations from which most Australian cars are sourced. Toyota, Honda and Ford have historically sourced many models from there, with the current top-selling Ranger, HiLux and D-Max all being sourced from the country.It has dropped down the list, as Chinese-built cars have increasingly been sourced for Australia from both new and historic brands. With even the Kia EV5 and Hyundai Elexio being Chinese-built Korean cars for the Australian market.But Thailand’s importance looks to be re-asserted as more Chinese brands establish strategic manufacturing facilities in the South East Asian auto hub.Obvious advantages are the fact that cars are built there on dedicated right-hand drive production facilities, freeing up space in Chinese factories to focus on other left-hand drive markets, while favourable government kickbacks, a free trade agreement with Australia, and a domestic market with an increasingly large taste for electrified vehicles will keep Thailand important for years to come.Big SUVs will be the next Chinese automaker battlegroundIn case you haven’t noticed, many big Chinese brands have shifted their focus. While utes and affordable hatchbacks and small SUVs continue to be all the rage, in their quest to actually generate profits, many Chinese brands have thrown huge amounts of resources into developing large luxury electric and plug-in hybrid models.The five-meter-long SUV space looks to be the next major battleground for these automakers, with Zeekr’s much-hyped plug-in hybrid 8X large SUV earmarked for an Australian arrival, and no doubt MG’s luxury IM marque will be looking to import versions of its LS8 or LS9.GAC has announced its next move will be a large SUV (likely the car known as the GS8 in China), while Leapmotor will move into new territory with its D16 and BYD’s Great Tang flagship have created some major buzz.Will they sell in Australia? With more fuel-conscious than ever new car buyers still crying out for more affordable electric options than the Kia EV9 for example (from $97,000) and Chinese automakers heavily incentivized to seek higher profit margins in markets like Australia, it seems possible we could be inundated with models like this in the latter part of the year.

It may be a new manufacturer to Australia, but Chinese giant GAC has one leg up which many of its rivals can’t claim - its deep ties with Toyota.

The GAC Aion UT Premium is the entry-grade of the Chinese newcomers hatchback range.With a launch price of $31,990, before on-road costs, it makes a statement as one of the most affordable new electric cars on sale in Australia.Roughly Corolla-sized, it competes with the BYD Dolphin, GWM Ora and MG4 rather than the smaller BYD Atto 1, or small SUVs like the BYD Atto 2 or Jaecoo J5.Setting it apart from price rivals is its motor which is more powerful at 150kW/210Nm, and its 60kWh LFP battery which delivers a useful 430km driving range.Standard kit is even right on the base car, with highlights including 17-inch wheels, a 14.6-inch multimedia touchscreen and 8.88-inch digital dash, synthetic leather interior trim, power adjust and heating for the front two seats as well as a heated steering wheel.The multimedia system features online connectivity, built-in navigation and wireless Apple CarPlay and Android auto connectivity.The full array of active safety equipment is standard, although like many of its contemporaries the systems can be frustrating in operation.Inside is space efficient, although like many of its rivals it lacks physical buttons for many features.Rear seat space is ample, but comes at a cost to boot space which measures 321 litres.Vehicle-to-load (V2L) is standard, allowing the battery to charge external devices, but there's no spare wheel in the Aion UT range.GAC covers its cars with an eight-year and unlimited kilometre warranty, with the battery covered for the same time but 200,000km distance.

Cheaper Mazdas are here to stay.The 2 hatchback and its CX-3 little SUV spin-off have both had a stay of execution in Australia. Mazda has confirmed availability of the current generations will continue well into next year, giving the Japanese brand continuing presence in the lower-end of the new-car market.This is despite recent reports stating that the CX-3 and 2 will be phased out this year in Japan, with production of the latter ceasing last month in favour of higher-profit vehicles at the Hofu plant.Mazda Australia Managing Director Vinesh Bhindi said production out of Thailand will continue as it has with both models for most of their long lives, with consistent supply guaranteed for out market into 2027.“The current Mazda2 and CX-3 are here to stay, even though there are some articles out there suggesting otherwise,” he told CarsGuide.“It is depending on region, but in Australia, both those vehicles will stay because the Thailand production facility is still continuing. So even though they are to be discontinued in Japan, they will (still) get to us. (Production) continues.“I'm not sure about what happens in Japan. But for Australia, we source both those cars out of Thailand, from our factory in Thailand, and we will continue to do so.”The 2 Evolve automatic from $27,290 (all prices are before on-road costs) in both five-door hatchback and four-door sedan guises, is currently the cheapest new Mazda in Australia, while the CX-3 Pure 2WD auto starts from $30,670.In March, 2026, the average Manufacturer's Suggested Retail Price (MSRP) of a new Mazda vehicle in this country was about $56,740.With the 2 and CX-3 released in Australia back in 2014 and 2015 respectively, they remain two of the oldest models on sale today.Small specification updates and some safety upgrades along the way, as well as a minor facelift for each late last decade, are about the extent of any meaningful changes, while both models have maintained their original petrol engine choices the entire time.Bhindi also refuted speculation that newer rules surrounding Australian Design Rule and ANCAP crash-test requirements are forcing Mazda Australia’s hand in discontinuing these models.“No, we will have (2 and CX-3) all this year and all of next year,” he reiterated.“(They) comply with the ADR. And as long as they are (still) being manufactured in right-hand drive, we will have them.”Last year, Mazda shifted 4346 2s, coming in at second place behind the MG3 at 8350 sales, to command nearly 23 per cent of total light-car volume against the latter’s 44 per cent. And while that was a 19 per cent decline over the year before, it was ahead of the total segment fall of nearly 28 per cent.More impressively, the CX-3 led the Light SUV class convincingly, with 15,429 registrations for a 29 per cent market share.While that was down 16.4 per cent in a segment that fell by only five per cent, the Mazda managed to stay ahead of the far-newer, second-placed Toyota Yaris Cross’ 10,928-unit tally (for a 20.5 per cent share), which was actually up by 33 per cent year-on-year.With that sort of growth potential, it is clear that Mazda Australia wants to keep a strong presence in the light SUV corner.Watch this space.

Chinese newcomer GAC couldn’t have timed the arrival of its Aion UT to Australia better, but is it the affordable electric hatchback it needs to be?

Volvo has taken a knife to prices of its small SUV line-up with $10,000 sliced off cost-of-entry for its small EX30 Single Motor Extended Plus - now $49,990, before on-road costs.Base pricing for the slightly larger EX40 has also been cut with the entry-level EX40 Single Motor Extended Ultra reduced by just over nine per cent to $69,990, before on-road costs (was $76,990, BOC).When contacted for background on the pricing changes a Volvo Car Australia spokesperson told CarsGuide, “In preparation for the introduction of the game-changing EX60 to local shores Volvo Car Australia has repositioned its 30 and 40 series all-electric vehicles.“To accommodate the arrival of the EX60 it is paramount that we alter our current game plan. “When the all-electric mid-size SUV arrives, it will change the game in the largest electric market segment in terms of range, charging speed, performance, and price,” they said.The repositioned EX30/EX40 pricing (before on-road costs) is below.Speaking at Volvo Cars’ most recent investor briefing in Stockholm, the company’s Chief Commercial Officer Erik Severinson confirmed the upcoming EX60 mid-size EV SUV will be priced at the same level as an equivalent plug-in hybrid (PHEV).So, these small SUV price reductions point to a starting price position for the EX60 at around the same $74,990, before on-road costs, level as the entry-grade XC60 Plus B5 Bright AWD.The flagship XC60 Ultra T8 Plug-in Hybrid Dark AWD sits at $101,990, BOC.The mid-size pure-electric EX60 SUV will initially be offered with a choice of two powertrains.The P6 Electric comes with a single rear motor that produces 275kW/480Nm which delivers a sharp 5.9-second 0-100km/h acceleration time.And the dual-motor P10 AWD Electric’s dual motors send 375kW/710Nm to all four wheels for a 4.6-seconds 0-100km/h sprint.Claimed WLTP range is 620km for the former and 660km for the latter, thanks to its larger 95kWh battery.Charging is near top of the class thanks to Volvo's all-new ‘SPA3’ platform's 800-volt electrics. The P6 can be topped up at up to 320kW, while the AWD P10 rampd that rate up to an impressive 370kW.

Euro carmaker Renault has slashed the price of its Megane E-Tech electric hatch in Australia.The car will now start from $49,990 (drive-away), representing a more than $15,000 decrease on its original launch price.When it arrived the E-Tech started from $64,990 (before on-road costs) in late 2023.Renault’s small SUV is a European rival to the likes of the Hyundai Kona Electric and the Kia EV3, with this latest deal undercutting both. It also comes in cheaper than the Mini Countryman EV, which starts in the low $60K bracket. The deal will run until the 30th of June 2026, while stocks last. It only applies to models with solid white paintwork and a black roof, with metallic paint costing an extra $400 and alternate two-tone paint adding an extra $800.Renault sold 207 examples of the Megane E-Tech in 2025, which represented a drop on 2024 numbers. It trails the EV3 and Kona on the sales charts, with Chinese rivals such as the Zeekr X also besting it. The car has experienced a couple previous price cuts since it went on sale, and was available from $54,990 (drive-away), before this latest cut.The base variant of the Megane E-Tech has a single electric motor set-up, producing 125kW and 280Nm, with its 60kWh battery, offering 454km of driving range (WLTP). On the inside, the car has a 12.3-inch digital driver display and 12.0-inch central touchscreen. The Megane E-Tech is one of several electrified models forming part of Renault’s ‘International Game Plan 2027’ for overseas markets.The brand recently brought across its Scenic E-Tech SUV to Australia earlier this year, with the plug-in hybrid Filante also a possibility Down Under at some stage.