Price wars - Australia’s cheapest new cars and SUVs under $25K

A price war is brewing at the bottom end of the Australian new-car market with MG dropping the point of entry for its recently-released base model, the MG 3 Vibe hatchback, by $1000, to $20,990 (all prices listed are driveaway in WA).

The result sees the Chinese light car comfortably undercut South Korea’s smaller Kia Picanto S manual that currently starts from $22,140 by over $1100, or by $2,250 with matching automatic transmission, making it the lowest priced new vehicle sold in this country by some margin.

With sales down by over 33 per cent last year after the latest-generation model launched in 2024 came with an unexpected $5000 price hike due to substantial technological improvements, MG is determined to lure back customers who might consider the evergreen Kia instead, using the Vibe grade as the starting point.

That shouldn’t be too hard a task for the brand, since the MG 3 is a whole segment-size larger than the Picanto while offering more interior space, power, safety, equipment and warranty, and all at a usefully lower price. Where it falls over is on safety, with a low 3-star ANCAP safety rating.

The next cheapest contenders amongst light and small cars are the Suzuki Swift Hybrid out of Japan from $25,490 for the manual (although the auto will set buyers back from $27,990), BYD Atto 1 Essential electric vehicle from just-under $26,140 (a historic low for EVs in Australia, as well as a sign of China’s considerable strength in this class), Mazda 2 G15 Evolve from $28,990 and Toyota Yaris Ascent Sport Hybrid from a hefty $32,766. The latter also hail from Japan.

That all said, the real battle amongst consumers seeking a bargain is amongst smaller SUVs rather than city/light cars, since the former together accounted for over 21 per cent of all volume in Australia last year, compared to the latter’s miniscule 2.7 per cent share.

Even at marginally higher prices, buyers prefer the loftier riding height of SUVs over more-traditional hatchbacks and sedans, making them more relevant than ever, and that’s a trend reflected around the world.

Back in Australia, the line in the sand for a while seemed to be $23,990, led by the hugely-popular Chery Tiggo 4 Pro from China. With sales skyrocketing as a result, it was recently joined by the Mahindra 3XO XUV out of India, while another Chinese brand, GWM, has recently cut $3000 off its strong-selling Haval Jolion Premium, to equal that price point.

However, MG (again) has just thrown down the gauntlet by offering the entry-level ZS Vibe for $1000 less than usual this month, meaning from just $22,990, making this large-ish small SUV the third-cheapest new vehicle in Australia, period, after the MG 3 and Picanto hatchbacks.

Rounding out the sub-$25K new SUVs, Suzuki still seems to have some stock of the now-discontinued Ignis light SUV in base GL guise from $24,490.

Hovering a little over that mark is the Hyundai Venue and newly-arrived GAC Emzoom Luxury (both from around $27,300) from South Korea and China respectively, while the pre-facelift Kia Stonic S is still officially listed from about $28,800.

Cheapest new vehicles under $25K in Australia (All prices are drive-away as of February, 2026)

$20,990
MG 3 Vibe

$22,140
Kia Picanto S

$22,990
MG ZS Vibe

$23,990
Chery Tiggo 4 Pro
GWM Haval Jolion Premium
Mahindra XUV 3XO AX5L

$24,490
Suzuki Ignis GL