Anyone looking to buy a new car for a teenage member of the family – or drive a cheap reliable hatchback into retirement – will now need to pay more than $20,000 drive-away for the first time in at least four decades.
Australia no longer has a new car priced below $20,000 drive away after Chinese brand MG vacated the budget segment with the arrival of the new MG3 hatch (pictured above) which starts from $23,990 plus on road costs – or about $26,000 drive-away.
Japanese brands Toyota, Mazda, Nissan and Suzuki had already vacated the sub-$20,000 drive-away segment last year.
The cheapest new car now sold in Australia is the Kia Picanto (pictured above), which has started from below the $20,000 drive-away threshold for most of is time in Australian showrooms.
The battle between these two models is indicative of the looming battle between car makers from China and Korea.
Chinese brands such as MG, GWM Haval, Chery and LDV now dominate the $20,000 to $40,000 price bracket in Australia as Japanese and Korean brands scurry to higher ground, with limited options to compete in the budget end of the new-car market.
The previous generation MG3 was previously priced from $15,990 plus on road costs, which still snuck under $20,000 drive away.
The cheapest variant in the new MG3 line-up starts from $23,990 plus on road costs, or about $26,000 drive-away.
The Kia Picanto was previously priced from $14,390 plus on-road costs, or about $16,990 drive-away.
But the recently updated Kia Picanto now eclipses the $20,000 drive-away barrier even though the RRP is $17,890 plus on-road costs (about $20,690 drive-away).
Here’s a quick recap of two of the cheapest new cars in Australia in showrooms today:
Joshua Dowling has been a motoring journalist for more than 20 years, most of that time with Fairfax (The Sydney Morning Herald), News Corp Australia (Herald Sun and News.com.au), and most recently Drive.com.au (owned by Nine Media). He is also a World Car of the Year judge, has won numerous journalism awards, and test drives up to 200 cars per year.
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