Car industry

Hyundai racked up the fourth-largest inaugural New Vehicle Effectivity Well-liked (NVES) penalty within the vehicle CO2 law’s first 12 months of operation, and the firm has revealed how and why it took dwelling.

A spokesperson for Hyundai Motor Firm Australia (HMCA) told Chasing Autos that the “enormous bulk” of the penalty was as soon as chalked up by the CO2 contribution of petrol-powered, excessive-efficiency Hyundai N cars.

NVES penalties are issued when the frequent CO2 emissions of all vehicles supplied by a vehicle manufacturer in a calendar 12 months exceed a legislated govt limit.

In 2025, the headline NVES limit was as soon as 141g/km for cars and SUVs. There are increased limits for utes and heavy-duty 4WDs, but Hyundai doesn’t promote any vehicles in that class in Australia.

Petrol-powered N cars cop the blame; Hyundai promises to preserve them

Nearly about all of Hyundai’s N items emit significantly extra than the 2025 limit.

The ‘dirtiest’ of the lot is the distinctive, with the i30 N hatchback officially rated for 197g/km while the a little bit of of slipperier i30 Sedan N sliding in at 194g/km. The pint-sized i20 N emits 157g/km.

The finest exception is the absolutely electrical Ioniq 5 N which, cherish any BEVs, emits 0g/km for NVES functions.

Restful, HMCA chief working officer Gavin Donaldson told Chasing Autos that the petrol-powered N cars aren’t going wherever.

“N isn’t most likely for Hyundai, and we possess a mountainous N neighborhood, as we’ve considered from our N festivals and notice events. N owners are our finest imprint ambassadors.

“We’re going to have the option to all the time promote Ns in Australia,” acknowledged Donaldson.

Restful, plans are afoot at HMCA to raise the percentage of sales of battery electrical vehicles (BEVs) to offset the emissions of the N cars extra precisely, within the hopes of avoiding future NVES penalties.

“We fair appropriate possess to assign better with EV sales to abet derive the penalty we rating for ICE-powered N efficiency cars,” Donaldson acknowledged.

Other non-N Hyundai items are no longer pulling their weight

Left unsaid by HMCA sources was as soon as that there are diversified vehicles within the native Hyundai lineup which are no longer pulling their weight on the NVES front.

Entry-level powertrains old by Hyundai for the smartly-liked Kona tiny SUV and Tucson midsize SUV emit CO2 in diagram over the NVES limits, at 184g/km and 149g/km apiece.

Then there’s the 2.5-litre turbo petrol version of the reigning Chasing Autos Vehicle of the 12 months, the Hyundai Santa Fe, which is Hyundai’s thirstiest SUV — with CO2 emissions of 212g/km.

Those numbers breached the 2025 limits, and so they are deep into the red for 2026, with NVES headline CO2 limits tightening significantly for cars and SUVs to 117g/km.

Though-provoking investors into hybrids is a handy solution for 2026

HMCA will soon possess to make a selection what to assign about excessive-CO2, non-N powertrains.

The imprint already sells hybrid choices for several of its items, with the in part electrified powertrains making a mighty distinction: the Kona Hybrid and Tucson Hybrid emit 121g/km and 88g/km respectively.

Likewise, the hybrid version of our COTY winner slashes CO2 emissions to 128g/km — a 40 p.c enchancment.

Demand to possess a look at HMCA pull levers to shift seek info from of further to the hybrids.

Elexio leads fee to assign sales of absolutely electrical Hyundais

Operations boss Donaldson’s acknowledgement of the possess to promote extra EVs kicked off earlier this week.

Priced from $59,990 driveaway, Hyundai’s new Chinese-built Elexio midsize SUV is a BEV the emblem hopes will pinch some non-public and snappy industry away from the Kia EV5 and Tesla Model Y.

Hyundai wants to build a factual stab at making the Elexio a success as sales of the emblem’s innovative Ioniq 5 BEV remain enviornment of interest: fair appropriate 626 had been delivered final 12 months.

About 70-p.c of carmakers in Australia hang successfully averted initial CO2 penalties save into enact by the Unusual Automobile Effectivity Traditional Regulator (NVES), leaving 30-p.c going by gigantic doubtless fines which will most productive worsen year-on-year.

The fines would per chance be formally issued in February 2028, multiplying Meantime Emissions Tag (IEV) results by $50 AUD, in some cases totalling tens of millions of bucks.

Preliminary results expose 2025’s third preferred carmaker, Mazda, because the entrance-runner in penalties, with an IEV of 508,517 — representing a doubtless beautiful of ~$25.4 million. Runners up encompass Nissan with 215,261 (~$10.8 million), and Subaru with 139,635 (~$7.0 million).

Mazda, Nissan, and Subaru are the tip three of 19 brands which fell short of their Form 1 and Form 2 emissions targets. These 19 carmakers can hang no longer as a lot as two years to certain their money owed, or endure the results.

Conversely, 40 brands met or exceeded their IEV targets, the latter accruing credits which would per chance be sold to other automakers, or utilized to much less atmosphere pleasant autos.

BYD led the pack for atmosphere pleasant vehicle manufacturing, mustering an IEV of -6.3 million to complete a theoretical ‘price’ of ~$314 million. Hybrid-obsessed Toyota snagged second with -2.9 million (valued at ~$145 million), and Tesla third with -2.2 million (~$110 million).

Diversification of car powertrains, introduction of original EV gadgets, and the frequent exercise of sunshine-hybrid methods, namely observable with Toyota, are all attributed because the riding motive of many automakers assembly 2025’s IEV aims.

“An expand within the vary of zero and low emission autos on hand within the Australian market hang supported the achievement of the well-known-year targets,” acknowledged Tony Weber, chief govt of the Federal Chamber of Car Industries.

Additional info on industry terms and authorities guidelines, alongside side NVES, IEV, FEV, “Form X” autos, CO2, and how penalties are utilized, continues beneath.

What is NVES and how does it work?

Established on 1st January 2025, NVES is a authorities-operated regulatory body which gadgets vehicle CO2 emissions targets for all original autos sold in Australia between 2025 and 2029.

Unusual autos are sorted into two kinds, every with their like emissions thresholds. ‘Form 1’ refers to most passenger autos and SUVs, while ‘Form 2’ is oriented towards industrial autos, utes, and off-street SUVs.

Form 2 autos adhere to much less stringent emissions targets.

Closing year’s emissions limits hang been averaged to be 144 grams of CO2 per kilometre for Form 1 autos, and 214g/km for Form 2 autos. Automakers are rewarded with credits for autos which carry out beneath the threshold, and penalised for exceeding it.

Automobile emissions are averaged over a six-month interval, where an ‘Meantime Emissions Tag (IEV) is generated. An IEV simply represents how an automaker tracks with guidelines, where a detrimental IEV signifies credits, and a particular IEV represents debits.

Based totally on NVES, automakers can hang except February 2028 to stage out their particular IEV values, whether or no longer that is carried out by procuring credits from other, more behaved brands, promoting extremely atmosphere pleasant autos treasure PHEVs and EVs, or strategising a blanket vehicle price expand, with the intent to cross on the beautiful to the particular person.

This year’s emissions targets are field at 117g/km for Form 1 autos and 180g/km for Form 2. Subsequent year, 92g/km (Form 1) and 150g/km (Form 2), 2028 68g/km (Form 1) and 122g/km (Form 2), and at closing, 2029 field at 58g/km (Form 1) and 110g/km (Form 2).

What is Carbon Dioxide (CO2) and why is it regulated?

In easy terms, all petrol and diesel autos, hybrid or in another case, form CO2. It is a compulsory byproduct of feeble inner combustion, where fuel is blended with tension and ignition to form CO2 and vitality.

Clearly, recent automobile know-how has seen electrical autos, which theoretically form no emissions in any appreciate, and hydrogen-powered autos, which combine hydrogen and oxygen to form vitality and water, bypass the notify manufacturing CO2.

Combustion autos treasure automobiles, buses, autos, planes, and trains hang all contributed to an abnormally big quantity of CO2 entering the atmosphere over the past 100 years.

CO2 is a greenhouse fuel, this capability that a further contributes to the greenhouse enact, a key element of global warming.

The more CO2 the Earth produces, the more heat from sunlight is trapped within the atmosphere, and the more the Earth’s temperature rises.

Due to this regulatory bodies treasure NVES hang been implemented round the field in an strive and decrease or eliminate the pointless manufacturing of greenhouse gasses, to be succesful to withhold livable prerequisites on our planet.

It would possibly per chance perchance per chance presumably well simply not luxuriate in low differ, diff locks or even all-terrain tyres, but Subaru Australia reckons the new Outback Desolate tract is capable ample to tempt buyers out of ladder-frame 4WDs fancy the Ford Everest and Isuzu MU-X.

Surprisingly, the new Outback Desolate tract — a sub-designate of off-aspect dual carriageway trims introduced to Australia for the principle time this 365 days — has more ground clearance than the Everest class.

With clearance of 240mm (20mm elevated than a historical Outback), the Desolate tract sits elevated on paper than the Ford Everest (226-229mm on most trims), Isuzu MU-X (230-235mm), and Toyota Prado (210-221mm).

There’s no wading depth claim but Subaru says the Desolate tract — geared up with new dual X-Mode AWD tool — is capable on realistic trails. We’ve examined it this week and would possibly per chance perchance presumably well report our findings on 18 February.

Then there would possibly per chance be the Outback Desolate tract’s turbo petrol engine — making 194kW/382Nm — which would possibly per chance perchance presumably well tempt purchasers ill of rattly diesels away.

The petrol-fuelled wagon leads the 190kW Ford Everest V6 on energy but trails it on torque — with the six-pot oiler bringing 600Nm to the fore.

“There would possibly per chance be fully a territory we are able to extra push into with Desolate tract, which is that rugged, off the crushed song [segment] traditionally owned by ladder-frame 4WDs,” Subaru Australia fashioned manager Scott Lawrence told Chasing Autos.

“Outback [Wilderness allows you] to construct up all of that, but you would possibly per chance perchance presumably simply luxuriate in an ultimate utilizing automotive that handles effectively on aspect dual carriageway. I could per chance perchance presumably well support anybody after they leer at these create of [ladder-frame] 4WDs to leer at the Outback.”

The new seventh-era Outback arrives in Australia this month with 5 model grades — three with 220mm clearance (and a non-turbo engine) and two Desolate tract devices with 240mm, turbo energy, and ranging levels of luxurious.

Opting for the Desolate tract is a $10K upgrade over the popular-or-garden Outback but it absolutely brings considerably elevated ranges of performance and trot-ready functionality.

That mentioned, Australia misses out on some US-market Desolate tract items fancy factory-fit all-terrain tyres on 17-trot wheels.

Within the neighborhood, 18-trot wheels and dual carriageway terrain Bridgestone Alenza rubber is fashioned but Subaru Australia sources narrate it’s seemingly all-terrains will be added to the alternate ideas checklist quickly.

Crucially, Subaru Australia management sees the Desolate tract as a offer of new possibilities for the Outback that would possibly per chance perchance presumably well lead to elevated gross sales of the raised wagon.

Subaru in overall sells about 10,000 Outbacks every 365 days in Australia; final 365 days Ford delivered 26,191 Everests. Toyota supplied in regards to the identical option of Prados.

In diversified words, there are masses of targets there for Subaru.

“With this new model 365 days, I could per chance perchance presumably well search recordsdata from boost within the model,” mentioned Lawrence.

Subaru Outback 2026: prices in Australia

All prices listed are earlier than on-aspect dual carriageway fees.

• Outback AWD: $Forty eight,990
• Outback AWD Top class: $fifty three,490
• Outback AWD Touring: $56,990
• Outback AWD Desolate tract: $59,690
• Outback AWD Desolate tract Apex: $62,690

Subaru Australia final week confirmed that it would originate the Trailseeker electric wagon in Q2 2026 — and this week, we’ve learned the emblem is making an strive to fit a spare wheel and tyre to the auto.

A pre-manufacturing Australia-spec Trailseeker grow to be confirmed to Chasing Vehicles this week that gains a prominent under-boot storage dwelling.

A Subaru Australia offer identified that the dwelling in ask will be stuffed with a spare — an notion not batted away by total supervisor Scott Lawrence.

“We would savor [a spare]. We assume the necessity for a spare wheel is indubitably high on the agenda. We are able to work on how we are going to discover a arrangement to give a increase to customers in that dwelling,” acknowledged Lawrence.

Spare wheels and tyres are vanishngly rare among entirely electric autos and are becoming laborious to seek out in non-electric autos as correctly — in particular hybrids.

As soon as thought about an necessary accessory for any roughly long-distance using in Australia, spare wheels are more and more more sacrificed for diversified automobile packaging requirements.

For EVs and hybrids, battery packs continually eat into the under-boot dwelling historically used to discover a spare, whereas rear electric motors, subwoofers and complex suspension parts all question dwelling.

The Chery E5 runt electric SUV has a rare full-dimension spare in Australia whereas the Hyundai Kona Electrical provides a spare-saver spare.

Subaru once prided itself on vary-wide fashioned fitment of spare wheels and tyres sooner than the 2024 Solterra midsize EV and 2025 Forester Hybrid both deserted spares because of the packaging conflicts.

Rather unwieldy accessory spare wheels are readily available for both units, being mounted to the tow bar hitch and taking up dwelling originate air the auto.

Now, the Solterra’s higher sibling — the Trailseeker wagon — is attach to be the turning point that can even glance spares returned to a few Subaru’s higher electrified units.

Like Solterra, the Trailseeker stays a five-seat automobile and the 2 portion a wheelbase, however the latter mannequin is 152mm longer and 25mm taller, because of the fitment of roof rails.

In Europe, Subaru is badging the Trailseeker because the e-Outback — domestically, the emblem is making no secret of hopes the mannequin will be the EV of replacement for novel Outback house owners.

Request Subaru’s marketing marketing campaign to point of curiosity on the Trailseeker’s suitability for Australia — an perspective that would completely be strengthened by fitment of a spare wheel and tyre.

Subaru Australia will be hoping to ring a bell with Trailseeker because the smaller Solterra EV has been a marginal performer domestically, notching up merely 202 sales in 2026.

The Japanese place’s compliance with Australia’s powerful Recent Automobile Emissions Customary (NVES) criminal pointers method it has to lengthen sales of EV and hybrid units at a like a flash clip.

To that extinguish, the Trailseeker uses a 74.7kWh nickel manganese cobalt battery to carry a amount of about 500km. Twin-motor AWD with 280kW of strength will be fashioned.

That will model the Trailseeker Subaru’s quickest manufacturing automobile out of the manufacturing facility ever with a 4.4 second 0-100km/h divulge — a second sooner than a WRX STI.

Request pricing to kick off within the mid-$60,000 vary sooner than on-avenue charges.

The foremost electric automobile aquire subsidy in Australia is ‘under evaluation’ by the federal govt, with the paunchy waiver of the Fringe Advantages Tax (FBT) loved by EV shoppers the employ of novated leases perhaps on the lowering block.

Talking with Chasing Autos, Kia Australia chief govt officer Damien Meredith says the conceivable abolition of the FBT waiver for electric vehicles does no longer fright him.

“My glimpse is pretty powerful identified — which is that less interference or reinforce from govt is extra healthy, and lets manufacturers compete on a stage playing field,” talked about Meredith.

Kia Australia won’t struggle elimination of FBT waiver for EV leases

Kia’s native boss predicted there would possibly perhaps perhaps be no alternate in EV quiz in Australia although the FBT waiver is abolished, arguing that revolutionary electric vehicles would convince shoppers to be aware of EVs even within the absence of a financial subsidy.

“I don’t mediate it will dangle any carry out [on EV demand in Australia — that is my honest opinion]”, Meredith informed Chasing Autos.

Having access to the waiver on FBT for EV novated leases saves the common paunchy-time employee about $10,000 during a conventional three-year EV rent when put next to the employ of put up-tax automobile financing.

Nonetheless the nature of the subsidy pushes EV shoppers into on occasion opaque novated rent buildings via their employer moderately than user credit ranking merchandise.

Kia sold 8001 fully electric vehicles in Australia in 2025, representing about 10 p.c of the emblem’s whole sales volume on this country. Most well-liked became once the EV5 SUV (4787 sales).

The South Korean manufacturer sells five paunchy EV units in Australia, and it is expanding present of hybrid and lumber-in hybrid (PHEV) versions of its combustion vehicles.

Product-driven innovation higher than legislative reinforce: Meredith

A identical FBT waiver became once on hand for PHEVs unless April 2025.

Kia Australia boss Damien Meredith talked about that PHEV sales continued to develop at a snappily clip even after the tax advantage disappeared for hybrids.

While that is accurate, sales of one PHEV — the BYD Shark 6 ute — represented powerful of the expansion in lumber-in sales in 2025.

“That is the point; [the increase in PHEV sales] became once product-driven, and no longer legislatively driven,” talked about Meredith.

“The stunning-tuning of legislation is continuously going to happen…the market has a silly formulation of overcoming those legislative changes, within the event that they devise occur, to back going.”

Kia’s inner information predicts that its have EV sales is doubtlessly no longer dinged by the ending of the tax advantage for electrics.

Kia Australia supports NVES as ultimate formulation to incentivise EV, PHEV sales

Crucially, Meredith published to Chasing Autos that Kia Australia is doubtlessly no longer making a submission to amend the federal govt’s strict Unusual Automobile Emissions Identical old (NVES) licensed pointers, which themselves will seemingly be reviewed in slack 2026.

“No, [Kia will not]. We’re ecstatic with what’s in play [on NVES],” he talked about.

NVES makes it inevitable that by 2028, most new vehicles sold by a given manufacturer will ought to be paunchy EVs or PHEVs to back away from large financial penalties.

NVES penalises non-compliance by fining carmakers for failing to sell a adequate share of EVs and PHEVs, the put the FBT waiver subsidises EV ownership costs for taxpayers.

“It’s as much as manufacturers and manufacturers to invent what they dangle got to invent to develop their industry without having a reinforce foundation or advantage from govt legislation,” talked about Meredith.

Some rival manufacturers, including Toyota, are anticipated to argue NVES desires to be amended to present extra credit ranking for regular hybrids, moderately than favouring EVs and PHEVs.

While Kia Australia under Meredith won’t oppose elimination of the FBT waiver, the South Korean manufacturer is aloof planning for a hardcore uplift in EV and PHEV quiz.

“[Regular] hybrids flee out [of NVES compliance] in 2027. There’s typically absolute top one option after that,” talked about Meredith.

MG Motor Australia has presented the return of its introductory ZS ‘Vibe’ lustrous grade for 2026, with pricing for the minute SUV now starting from a low $22,990 driveaway.

The bullish trace drop implies that MG will officially reclaim the title of Australia’s cheapest minute SUV, after shedding bragging rights to the Chery Tiggo 4 Urban (currently $23,990 driveaway) in October, 2024.

However pricing for MG’s minute SUV shake-up is handiest expected to final till the 28th of February — afterwards, the MG ZS Vibe ought to return to a driveaway trace of $24,513, in step with the MG site.

Chery’s lower trace Tiggo 4 has dominated the minute SUV segment since its H2 2024 inception, with its sensible entry trace miniature question having fun with a key role.

Last year, the Tiggo 4 noticed an remarkable enhance in gross sales of 950.5-percent, shifting 20,149 items to hold the title of Australia’s most in vogue minute SUV, as properly as its cheapest.

In disagreement, the MG ZS noticed an 11.6-percent dip in gross sales year-on-year, shifting 20,000 items to beget out the year as Australia’s second-most-standard minute SUV. Simplest 149 deliveries separated the 2 Chinese language front-driven SUVs in 2025.

For 2026, the MG ZS Vibe will beget its 1.5-litre naturally aspirated four cylinder, paired with a CVT and front-force.

The Vibe produces 81kW and 140Nm, which implies that Chery’s introductory Tiggo quiet has the efficiency edge bragging rights with 108kW/210Nm.

Usual equipment on the 2026 MG ZS Vibe involves:

• 16-skedaddle Alloy Wheels
• 10.25-skedaddle Infotainment Conceal
• Reverse Digital camera
• Push Button Birth
• Wired Apple CarPlay® and Android Auto™
• MG Pilot Safety Suite
• Four-Speaker Audio Machine
• Two front USB Ports
• Cloth Interior
• Halogen Headlights with LED Daytime Operating Lights

All MG ZS items moreover function a five-fundamental person ANCAP safety ranking, as develop all Chery Tiggo 4 items.

Kia is decided to dump non-hybrid petrol and diesel engines in Australia as early as this yr because it confronts the realities of the federal govt’s Novel Car Emissions In model (NVES).

The dramatic switch to an all-hybrid Kia lineup — alongside a differ of EVs — starts with the 2nd-generation Seltos which would per chance originate later in 2026 with hybrid engines finest.

Once the Seltos goes all-hybrid, Kia Australia is predicted to embark on a immediate purge of pure petrol and diesel engine alternate choices because it seeks to steer decided of multi-million-greenback NVES fines.

Sorento and Carnival V6 already killed off, other non-hybrid engines will apply

Final month Kia killed off its most life like likely-CO2 engine: a 3.5-litre petrol V6 that used to be the most cost-efficient possibility for the Sorento huge SUV and Carnival folks-mover.

Next on the chopping block is the most affordable — nevertheless dirtiest — engine within the market for the Sportage midsize SUV. Merchants will be given a relentless need of hybrid or diesel.

NVES assigns credit score or penalties (fines) to automobile producers consistent with the moderate CO2 emissions of your entire vehicles provided every yr, with CO2 limits tightening from 2025 to 2029.

Stricter 2026 limits came into power on 1st January this yr and, with few exceptions, pure non-hybrid petrol and diesel vehicles and SUVs are now in breach of limits.

The lengthy-term answer is to sell more EVs, nevertheless for the following few years carmakers can end on the factual facet of NVES — avoiding grand fines — by promoting more hybrids, too.

Kia Australia to lean mighty into hybrids, following Toyota’s lead

That is Kia’s scheme: preserve rising EV sales while mashing the throttle on hybrids, consistent with chief govt officer Damien Meredith.

“We are going to strive to salvage as many hybrids into play earlier than the closing date, [before the point] once they’re of no advantage with regard to getting [NVES] credit score,” he said.

Product planning fashioned manager Roland Rivero confirmed the Seltos going all-hybrid is setting up the template transferring forward for Kia’s combustion automobile lineup.

“There will be other fat-model changes [to hybrid-only engines] to exhaust Seltos within the impending years,” said Rivero.

“Probabilities are you’ll per chance per chance must severely clutch into memoir [going all-hybrid]… It’s an NVES reality.”

Main driveaway pricing campaign to wait on investors into Kia hybrids

For 2026, NVES targets — which would per chance bend a chunk of searching on automobile weight — are factual 117g/km of CO2 for vehicles and SUVs, and 180g/km of CO2 for utes and a few heavy-duty 4WDs.

The V6 engine discontinued closing month used to be within the red, emitting 220g/km, nevertheless even the two.0-litre four-cylinder chanced on in most Sportage fashions produces 184g/km.

Meanwhile, the Sportage hybrid produces 40 percent less CO2 (110g/km), making it NVES compliant in 2026, and viable towards the 2027 limit of 92g/km.

The scenario for investors is that the Sportage hybrid is type of $6000 more costly than the non-hybrid petrol that is decided to be discontinued.

To bridge the hole, Kia is operating an aggressive driveaway mark campaign on the Sportage hybrid (from $44,490 driveaway) while asking 2.0-litre investors to pay fat freight (from $43,000 driveaway).

The Sportage hybrid saves an proprietor doing 15,000km per yr about $1000 annually in gas.

To bolster its NVES region, Kia is urging fleets and families alike into hybrid variations of its foremost trio of family vehicles. The Sportage, Sorento and Carnival extinguish up half of of Kia’s sales, that methodology they have a huge affect on overall emissions.

Internal sales figures from November 2025 to January 2026 uncover that Kia’s scheme is beginning to work.

Across the latest three months nearly half of of all Sportage sales had been hybrid, while hybrids made up 35 percent of Carnival MPV deliveries — nevertheless finest 21 percent for Sorento.

Diesel will live an possibility for the Sportage, Sorento and Carnival for the time being nevertheless in future, diesel Kia vehicles and SUVs will need gentle hybrid abilities to power CO2 down.

While pure diesels will even be more cost efficient than hybrids (notably on the twin carriageway), under NVES the staunch numbers that matter are CO2 emissions — and hybrids approach out on high.

K4 to salvage hybrid energy to handle Corolla, Tasman ute to be electrified

Kia is busily locking in hybrid energy for other fashions in its lineup with the K4 tiny automobile attach to plunge non-hybrid engines when it is facelifted, doubtless in 2027.

“Have to you are up towards a Corolla that is all-hybrid, it makes sense.

“Even if we can salvage 139g/km on the new [non-hybrid] powertrain, we can level-headed better that with a hybrid — at [a penalty of] $100 per gram [over the NVES limit], it adds up,” said Rivero.

Both the Seltos and K4 hybrid are anticipated to make exhaust of a variation of the Hyundai Kona’s 1.6-litre petrol-electrical unit. The Kona hybrid consumes 3.9L/100km while emitting 88g/km CO2 — and the aerodynamic K4 would per chance per chance end even better.

At the smaller end, Kia has already shifted the Stonic gentle SUV to a more frugal gentle-hybrid engine, and the Picanto hatch is doubtless to exhaust in a a similar direction almost right this moment.

More difficult to clear up would possibly be the Tasman ute, which emits around 200g/km (searching on clear grade) from its diesel engine.

Utes and 4WDs abilities relaxed NVES targets (180g/km in 2026, 150g/km in 2027) nevertheless the numbers tighten swiftly, making hybrids foremost even for gentle commercial vehicles.

Kia executives ascertain electrification is on the agenda for Tasman — nevertheless it completely is predicted to be a slower transition that would per chance per chance originate with a delicate-weight-hybrid diesel.

Unlike some competitors, Kia just is not as careworn by the final CO2 affect of the Tasman — each because it is never promoting in mountainous numbers, nevertheless additionally because it is promoting an in actuality in depth need of EVs (which emit a finest 0g/km for NVES functions).

Beyond 2027, Kia will must ratchet up EVs and shuffle-in hybrid sales

But while hybrids are viewed as a precious possibility within the immediate term, high Kia brass acknowledge that they are an intervening time step that end being precious remarkably swiftly.

This more or less in model, ‘Toyota-model’ hybrids Kia plans to push this yr have tiny friction for investors as they don’t can must be plugged in.

But their tiny batteries and negligible electrical-finest differ methodology the petrol part of the powertrain level-headed performs a substantial role and retains CO2 emissions broadly around the 200g/km stage.

“The [NVES advantage] for hybrids runs out in 2027 — there is in overall finest one possibility after that,” said chief govt Meredith.

That ‘one possibility’ methodology a shuffle — in other phrases, finest fat EVs and shuffle-in hybrids, which allow for in actuality in depth electrical-finest operating, are precious previous 2027.

A statutory review of NVES regulations is decided to occur later this yr. Kia just is not making a submission — Meredith says it is chuffed with the regime — nevertheless competitors, alongside side Toyota, are anticipated to behold more credit score for hybrids.

But when NVES limits and penalty rates live in their recent compose, the shift from pure ICE to hybrid would per chance per chance flip out to be the easy part.

With EVs making up factual 10 percent of Kia sales in Australia closing yr — itself a first payment end result towards the full market — the push into shuffle-in vehicles is in all chance the more complicated campaign.

Current vehicle produce rules win emerged from China’s Ministry of Alternate and Files Technology (MIIT) that could well well ticket the extinguish of flush and electrically-actuated door handles in many world markets.

Concerns surrounding the safety of flush and ‘electrical’ handles in emergency eventualities come following a string of occupant entrapment incidents in in vogue vehicles, every in China and in numerous areas.

From the first of January, 2027, unique vehicles equipped in China desires to be fitted with sturdy, ‘intuitive and physical’ free up mechanisms. Alternatively, the commercial dimension and significance of China to carmakers scheme that modifications to its produce rules could well well correctly impact vehicle specs equipped in numerous markets.

The laws stipulate that every particular person vehicle doorways (with the exception of bootlids, hatches, and heaps others) will must win every an inner and exterior physical free up, which must soundless be considered in any admire occasions and resistant to premature failure.

Particularly, exterior door handles will must win a physical recess measuring no lower than 6.0cm x 2.0cm x 2.5cm. Meanwhile, all interior free up handles desires to be accessible, and clearly marked with a pictorial no smaller than 1.0cm x 0.7cm.

The MIIT claims this legislation comes after loads of meetings with 40 domestic automakers, which began on the eighth of Might per chance per chance seemingly furthermore merely, 2025.

Graceful and flush match door handles win swiftly grown in repute over recent years, notably in electrified vehicles which focal level on increasing total effectivity by minimising lunge.

Several unique vehicles depend on electronic door free up mechanisms that are liable to failing out of the blue in an accident, vitality-loss incident, or thru fashioned wear and lumber. These unique laws seek for to give vehicle occupants a clearer path of egress regardless of exterior elements.

The Tesla Mannequin 3, let’s reveal, already has every a mechanical and electronic door free up mechanism match to every interior door-card. The Mannequin 3 nonetheless will soundless lose its flush-match exterior handles in commerce for a extra earlier college produce in the Chinese language market.

The Australian market is seemingly to be affected in some means by these modifications. Chinese language-built vehicles – while tweaked to fulfill Australian Web Regulations – equipped in Australia are steadily very a associated to their Chinese language domestic market counterparts.

From the first of January 2027, it is far expected that Chinese language vehicles comparable to the BYD Sealion 7, Zeekr 7X, Geely EX5, Xpeng G6, MG Cyberster, and Chery Omoda 9 will commerce their flush-match or button-actuated door handles for earlier college mechanical pull-vogue designs.

Chinese language-assembled vehicles comparable to the Kia EV5 and Tesla Mannequin Y are furthermore seemingly to introduce door modifications into the Australian market.

It’s seemingly that China’s door tackle standardisation legislation follows upon loads of reviews globally of vehicle doorways failing to originate in the tournament of a vehicle accident or fire.

Australia’s 2026 recent-autos sales hump is off to a tough begin, with 87,753 sales recorded for the month of January, a legitimate magnify of 949 autos over January 2025.

This in overall is a truly early indicator that the Aussie market will all yet again reach recent heights in 2026, following 2025’s all-time sales document.

The supreme-selling mannequin in January changed into Ford Ranger (3403 items), with a dominant fetch over arch rival Toyota HiLux (2800) because the latter transitions its recent abilities into showrooms.

A Toyota Australia spokesperson told Chasing Vehicles that the moderately soft HiLux result owes vital to a ramp-up of inventory of the recent-abilities mannequin, launched in December, and the timing of inventory into showrooms displays the drop in automobile registrations.

The evergreen Mazda CX-5 (2289) changed into the most traditional passenger automobile within the predominant month of the 365 days, followed by Chery Tiggo 4 Reliable (2234) and Mitsubishi Outlander (1975).

A habitual sales winner, the Toyota RAV4 (1757), trusty scraped into the Prime 10, the mannequin within the present abilities’s twilight with its replacement soon for local begin. Ford Everest (1913), Hyundai Kona (1839), Isuzu D-Max (1798) and Haval Jolion (1789) total the 10 most effective-seller slots for January.

Constant with Toyota Australia, the strangely low RAV4 result is an on the spot outcomes of a constructing picture financial institution for the recent-gen mannequin, due in showrooms leisurely March. The local arm additionally talked about it has no longer provided hump-out deals on outgoing-gen RAV4 and HiLux models, which additionally impacts January figures for both models.

Toyota’s dominance waned a limited of (16.3 percent market half) over the circa 20-percent market half enjoyed in newest sales months. But while its 14,310 sales pale in contrast to the circa-18K sales recorded in January 2025, the Enormous T accumulated outsold its nearest rival Mazda (7692 items) by nearly two to one.

Kia had a notably sturdy January, coming in third (6600) above Ford (6116), with Hyundai (5856) rounding out the Prime Five.

Chinese language brands continue to penetrate the sexy discontinue of the sales market, with BYD (5001), GWM (4509), Chery (3780) and MG (3123) all scoring Prime 10 standings, with Japan’s Mitsubishi conserving out eighth space (4347).

Extra, China proved to very with out trouble sit because the 2d-greatest provide of newest autos with Aussie traders within the aid of Japan, with autos sold from China having grown by 68.6 percent all over the last 365 days.

SUVs remain the most traditional automobile kind in Australia through January, with Fifty three,666 sales in contrast with light commercials (17,995) and other (non-SUV) passenger autos (13,623). Each passenger autos (4.6 percent) and SUVs (1.0 percent) were up versus figures from January 2025, while light commercials were down a limited of (-2.5 percent).

Extra broken down, medium SUVs (21,785) proved most properly-most traditional by Aussie traders, followed by runt SUVs (15,067), 4×4 Opt-AmericaCab Chassis (13,650) and tremendous SUVs (11,412) with a miles gap to the fifth most traditional segment, runt passenger autos (5946).

By powertrain kind, PHEVs (5161) continue to abilities a fixed surge in recognition, with a whopping 170.5 percent rise over January 2025, albeit with a vital smaller market half (5.9 percent) than common (self-charging) hybrids (15,131 and 17.4 percent). BEVs (7409) accounted for 8.4 percent.

Petrol (33,144) managed to outsell hybrid (15,131) two to one, however the most traditional energy choice in Australia changed into down a chief 14 percent over January 2025 numbers. Diesel proved the 2d-most traditional powertrain of choice, with 24,439 recent oilers registered in January 2026.

A most in model Tesla press liberate has confirmed the emblem is no longer going to introduce cut-impress variants of its Model 3 sedan and Model Y medium SUV to Australia, despite an inflow of more cost-effective rivals from China.

Tesla confirmed that worthy of the Model 3 and Model Y vary will be renamed in Australia, with RWD and Lengthy-Fluctuate RWD variants now adjoined with the title ‘Top rate’, to align native items with these sold abroad.

Prices, equipment, driving ranges and warranty for the renamed RWD and Lengthy-Fluctuate RWD Model 3 and Model Y remain unchanged.

While in the initiating showing to be Tesla’s first step toward introducing more cost-effective items, one subtle sentence successfully beaten the likelihood. No authentic cause has been supplied but Chasing Cars has reached out for comment.

“While Weird and wonderful Fashions had been launched in other areas, this mannequin is potentially no longer available for Tesla Australia & New Zealand,” the bid learn.

Tesla’s ‘Weird and wonderful Fashions’ are defined by their diminished driving vary, smaller batteries, slimmer feature dwelling and a sharper introductory impress. Every the Tesla Model Y and Model 3 are supplied in Weird and wonderful guise in other upright-hook markets admire the UK.

That market sees Weird and wonderful Fashions initiating up spherical 15-p.c more cost-effective than the introductory Top rate Fashions. If this flat-rate cut impress change into once applied in Australia, the Model 3 would prefer an entry impress from ~$46,700 earlier than on-avenue charges, and the Model Y from ~$50,000.

There has long been speculation within the Australian market that more cost-effective, more traditional Tesla items would rapidly be launched so as to right gross sales in opposition to fresh rivals admire the Zeekr 7x, BYD Sealion 7, BYD Seal, and Xpeng G6.

Much less expensive Tesla variants would also wait on as a leg-up in opposition to legacy brand offerings admire the Skoda Enyaq, BMW i4, and Kia EV5.

Tesla Model 3 2026: costs in Australia

All costs listed are earlier than on-avenue charges.

• Top rate Rear-Wheel Force: $54,900
• Top rate Lengthy Fluctuate All-Wheel Force: $61,900
• Performance All-Wheel Force: $80,900

Tesla Model Y 2026: costs in Australia

All costs listed are earlier than on-avenue charges.

• Top rate Rear-Wheel Force: $58,900
• Top rate Lengthy Fluctuate All-Wheel Force: $68,900
• Performance All-Wheel Force: $89,400