Australia's best small cars rock up for Wheels Car of the Year 2023

Small cars used to win COTY all the time.

Between 2009 and 2016, nothing bigger than a VW Golf occupied the top step of the podium. Since then, the humble hatch seems to have fallen on tough times. Ford has abandoned the sector, winding up sales of its Fiesta and Focus, while Hyundai doesn’t import the standard i20 and is about to pull the shutters down on i30 imports. Kia's little Rio is also gone.

But while the mass market has suffered, there’s still breathing room for more premium players – so for COTY 2023, we assembled three of 2023’s best in the chiselled forms of the Audi A3, the Peugeot 308, and the Skoda Fabia Monte Carlo.

More: So impressed were we with the RS3 Sportback that managed to trump the Mercedes-AMG A45 S in a Wheels comparison that we thought we’d sweeten the pot to the tune of 294kW. In doing so, however, it threw into sharp focus the value proposition of the other cars present, which could muster up an average of just 103kW between them.

WHEELS CAR OF THE YEAR 2023

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The Peugeot 308 arrived with big boots to fill, having previously been a runner-up at COTY.

It’s undeniably a good-looking thing with a sporty vibe that’s exciting, but there’s always that nagging question of how much you’re paying for style and how much for substance.

At $43,990 for the hatch and $50,490 for the wagon – both before on-road costs – it’s an expensive offering. The wagon has a few more frills for that extra five grand plus there’s the promise of some added versatility thanks to a longer wheelbase.

From the get-go, we all wanted to fall in love with Skoda’s richly equipped Fabia Monte Carlo hatchback, and to some extent we did. Things opened well with all the judges noting its clever packaging, striking interior execution and extensive list of standard equipment.

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It looked the goods too, the latest generation delivering a more rakish profile and more attitude in its stance than its narrow and upright predecessors. Whispers of the Fabia being an outside bet started to circulate Lang Lang’s chalet, for the most part drowned out by the tortured Pirelli sounds of Campbell flinging the RS3 through the moose test.

“The lane change in the RS3 was terrifying. Every nerve in my body screamed ‘brake’ as I approached the tiny-looking coned set-up at 110km/h – the quickest of any car – but it carved through like an Olympic slalom skier,” said Campbell.

“Audi has magically cured the old front-heavy feeling of the RS3. There’s a huge leap in dynamic ability with this new model.”

Inwood was similarly smitten. “The RS3 is a firecracker,” he enthused. “It has it all – noise, punch, grip, pace and genuine excitement. The ride is firm on the rough road section, but given it’s rolling on liquorice strips, it’s actually fairly composed.”

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Wizened old head Enright injected a little perspective. “It goes and steers brilliantly as you’d expect,” he agreed, “though you have to ask, how much does it offer if you’re not driving it like an absolute berserker?”

The optional carbon-ceramic brakes were almost universally disliked, part of a set of options that carried this RS3 well into six figures. “It carries a significant price jump for what is essentially a redesign of an existing MQB product,” said Affat.

While Fisk observed: “The cabin mixes class with a sporty edginess. There’s a lot to show for the money, but so there should be – $109K as-tested is a lot of money.”

“You wouldn’t have to go too far back in time to find 911 GT3s that would be dusted by this RS3” – Andy Enright

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Should you prefer to spend significantly less, the A3 35 TFSI sedan weighs in at $49,400 before options or $54,860 as tested (all before on-road costs).

Under the bonnet, it’s powered by the same 110kW/250Nm turbo-petrol four as the Skoda, which became a point of contention for some judges.

Among the judges, Spinks was impressed by its genteel polish on road, noting that “it has much more on-road sophistication than an A-Class sedan or BMW 2 Series Gran Coupe.” Meanwhile, Affat noted: “The fixed-rate dampers strike a nice balance between dynamic control and comfort.”

Though striking from the outside, it’s clear that some expense has been spared in kitting out the interior – with certain features, that might otherwise be expected at this price point, only available as paid options.

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“The whole package feels a tad cheap and unbecoming of an Audi,” said Fisk. “The doors only offer a small amount of space and the second row is let down by the absence of USB ports – not something you’d expect from a premium car-maker even in a relatively low-spec grade.”

Spinks agreed, noting that though the interior has some neat design touches, such as the boomerang-style door grips, it’s also full of plenty of hard, unconvincing plastics.

“It’s an undeniably handsome thing but it feels like this car lacks X-factor,” added Enright.

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“At this price point, the interior is not special enough, the accommodation not generous enough, and it could use a little more engine,” Enright said. “The harsh reality is that the $13K-cheaper Fabia covers most of the A3’s bases pretty well and comes with a seven-year warranty versus Audi’s five.”

The A3 also carries the minor caveat that only the front-wheel drive variants are rated as five-star by ANCAP. Go for a Quattro model and that’s unrated. We can’t see that it should be materially different though.

Inwood summed the Audi up, noting that “the A3 35 TFSI underwhelms slightly. It’s lovely to look at and polished to drive – but feels short on grunt, has a pokey rear seat and is a touch pricey for what it’s offering.” If you’re willing to pay the premium for the badge and not expect fireworks when you mat the throttle, the A3 delivers. Is that enough to progress at COTY? Not this time round.

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The Peugeot 308, on the other hand, knows a thing or two about going the distance at COTY. Unfortunately, its chances were torpedoed almost from the outset courtesy of a four-star ANCAP rating.

“It was the car I wanted to love the most at COTY. But its four-star ANCAP score and exorbitant pricing here in Australia mean it’s one of the first to fall,” said Law.

The cabin is adventurous and exciting, and very French in its styling, and we particularly liked the 3D effect on the digital cluster. But judges questioned the omission of some features for the asking price.

“It has a futuristic design, a nice mix of materials and well-bolstered suede seats. It feels special – until you discover the manual seat adjustment for the front passenger and no electric tailgate, which feels stingy in a $45K car,” remarked Inwood.

“Love the cabin execution of the Skoda. Plenty of personality and thoughtful design touches” – Alex Inwood

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There are some useful pockets of space, and a decent-sized boot – especially in the wagon which offers 608L – but many judges felt the legroom in the second row was tight in both versions, with Law observing “its longer wheelbase fails to add any meaningful rear seat room”.

Some of our shorter judges also took umbrage with the steering wheel, with Fisk noting: “The size, shape and position of the wheel is badly designed, and no matter where you put it you can’t see all of the digital cluster.” Spinks added: “I just couldn’t find a natural driving position. i-Cockpit is a fail for drivers below six foot.”

The 1.2-litre turbo-petrol isn’t particularly eager. “It accelerates like a baguette is stuck in the airbox,” said Campbell. “It’s not a lot of power for a lot of money,” tutted Enright. “Sport mode sharpens the throttle, but you can only do so much with 96kW. That said, the ride and handling is exquisite.”

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The judges found it fascinating and talented but were equally disappointed by the pricing and the lack of meaningful progression. “It’s a lot like the old car that almost won COTY in 2016. But the game has moved on dramatically since then,” Inwood concluded. “I’m frustrated because I want it to be better than it is.”

If the Peugeot disappointed, the same couldn’t be said of the Skoda. It impressed in the static poke and prod, with a large infotainment screen and low-down sports seats giving it a premium edge – though this is offset by a manual handbrake and traditional-style gear selector.

“The cabin is practical and stylish and succeeds in creating a semi-premium presentation despite almost exclusive use of hard plastics,” said Spinks. All judges were impressed by the space available, especially the rear headroom and legroom, as well as the 380-litre boot capacity. For safety, the Fabia scored well too, boasting five ANCAP stars and a lengthy equipment list as standard.

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All felt the Fabia is reasonably good fun to drive, but largely agreed the ride is slightly firm and were disappointed in the lack of paddle-shifters given the Monte Carlo badging.

“There’s enough mid-range punch and chassis poise to make it feel sportier than the related VW Polo Style – it’s no GTI, though,” said Law.

Its Achilles heel is a $36,990 before on-road costs asking price, with Enright wondering “would an enthusiast pay that or $2K less for a Hyundai i20N? Or $750 less for a Polo GTI? It’s not quick enough to appeal to drivers, but it may be too firmly sprung for those who merely want a smartly-dressed VAG product.”

The Fabia does a lot right, it feels special and has a solid seven-year/unlimited-kilometre warranty. But it felt priced out of its comfort zone and the firm suspension appeared to write cheques the lukewarm engine couldn’t cash. Although well-liked, when the votes were tallied, it couldn’t lobby hard enough for a place in the next round.

MORE READING

Now that you're done reading about these COTY 2023 contenders, you should go back to catch up on anything you might've missed. Check out the links below, or find it all at our COTY page.