In a move that could shake up Australia’s new car market, the Federal Government looks set to increase the Luxury Car Tax (LCT) threshold as part of a larger European Union free trade deal.

According to a report in Guardian Australia, negotiations with the EU on a new free trade agreement, including around Australia’s luxury car tax, are well advanced, with treasurer Jim Chalmers confirming increasing the LCT threshold was on the negotiating table. Guardian Australia reports that rather than scrapping the LCT altogether, the government is looking to increase the threshold from $80,000 to “at least” $100,000.

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The LCT is currently set at 33 per cent for every dollar above a certain price threshold in two distinct categories, based on fuel consumption. Vehicles that use less than 3.5L/100km (such as EVs, some hybrids and plug-in hybrids) only attract the LCT once over the $91,387 threshold. For vehicles that consume more than 3.5L/100km (most traditional internal combustion engine cars, in other words), the LCT threshold is lower at $80,567.

The LCT was introduced by the federal government in 2000 as a measure to protect Australia’s local manufacturing industry. Since the demise of local manufacturing in 2017, there have been repeated calls to scrap the LCT, its function no longer fit-for-purpose. However, successive governments have been reluctant to abolish the luxury tax which contributes around $1.2 billion annually to the government’s coffers, around 40 per cent of which, according to several reports, is generated from the sale of cars imported from Europe.

Mercedes-Benz has introduced the Mercedes-Maybach SL 680 to Australia, marking the first time the company’s ultra-luxury Maybach brand has been applied to the long-running SL roadster.

Positioned at the top of the SL line-up, the new model combines the performance of a high-powered sports car with the bespoke materials and design elements typically associated with the Maybach nameplate.

Under the bonnet is a 4.0-litre twin-turbocharged V8 engine producing 430kW and 800Nm, driving all four wheels through Mercedes-Benz’s variable 4MATIC+ all-wheel-drive system. The convertible can accelerate from 0–100km/h in a claimed 4.1 seconds.

The drivetrain is paired with a nine-speed SPEEDSHIFT MCT transmission and a dedicated Maybach drive mode, while the chassis has been tuned to emphasise ride comfort alongside performance.

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Standard equipment includes the brand’s ACTIVE RIDE CONTROL suspension system and rear-axle steering with up to 2.5 degrees of steering angle to improve manoeuvrability at low speeds and stability at higher speeds. Dynamic engine mounts, an electronically controlled rear-axle locking differential and a front-axle lift system designed to help clear steep driveways are also included.

The SL 680 is visually distinguished from other SL models through Maybach-specific exterior detailing. These include a dedicated grille with vertical slats, an Obsidian Black bonnet and 21-inch forged alloy wheels. Metallic paint finishes such as Garnet Red and Opalite White MAGNO are offered as standard.

Buyers can also choose from more than 50 optional MANUFAKTUR paint finishes, with the option of a bonnet finished in body colour or decorated with a Maybach pattern applied using Mercedes-Benz’s PixelPaint process.

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Additional exterior elements include chrome accents along the side sills and windscreen surround, an illuminated radiator shell and DIGITAL LIGHT headlamps with rosé-gold details. The acoustic fabric soft top carries a subtle Maybach pattern, while puddle lamps project the brand’s emblem onto the ground when the doors are opened.

Inside, the two-seat cabin features Nappa leather upholstery, a DINAMICA microfibre roof liner and trim details unique to the model. The sports seats feature a floral-inspired design with embossed Maybach logos and include heating, ventilation and massage functions.

Technology includes an 11.9-inch MBUX central touchscreen with augmented-reality navigation and 5G connectivity, a Burmester 3D surround sound system, wireless smartphone charging and Apple CarPlay and Android Auto integration.

The Mercedes-Maybach SL 680 is priced from $463,900 before on-road costs.

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A teasing silhouette image of the next Volkswagen Golf was released by German trade union IG Metall at a meeting with Volkswagen workers on Wednesday, at the same time as the manufacturing giant reaffirmed its commitment to the Wolfsburg factory where the Golf is built.

The new Golf, when it arrives, will be based on VW’s SSP architecture, and while the dark silhouette image is light on detail, new Golf looks to be, as expected, a subtle evolution of the model currently on sale.

Design inspiration has seemingly been taken from the ID. GTI concept with Autoblog reporting that the image file includes the words ‘ID. Golf’ in the title. This would appear to confirm that Volkswagen is moving away from alphanumeric naming convention for its electric vehicles. For example, ID.4 has been rumoured to be moving to ID. Tiguan in it’s naming convention, much easier for potential buyers and owners to remember.

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WhichCar by Wheels understands that the next generation Golf is also likely – for the first time – to see an electric variant sit alongside the petrol-powered variant when it goes on sale, and will be available some time in 2028.

While the silhouette image is light on specific detail, it does show a sharper, more visible rear spoiler, and a subtle change to the rear end lines. Previous reports have suggested a distinct focus on aerodynamics – vital to the efficiency of any electric vehicle.

Volkswagen Group head of design Andreas Mindt has previously referenced the Mark 7 Golf as a seminal moment for the now legendary hatch in terms of design. “The Mark 7 is kind of a masterpiece, because it resembles all the best elements from history, but it’s still a fresh design,” he said.

Having listened to the feedback from testers and owners, he also said at the time that all future Volkswagen product would retain physical dials, controls, switches or buttons for high-use features like HVAC control and entertainment volume.

In an admission of the popularity of the existing Golf, Volkswagen has stated that the new electric Golf will sit alongside a petrol version, likely to use a range of different engine variants, with hybrid technology also included. Rather than an all-new petrol Golf, though, the ninth generation, in petrol form, is likely to be a heavily updated version of the current model.

Initially revealed in October 2025, the upgraded 2026 Polestar 3 is now available to order in Australia ahead of deliveries commencing in July. Priced from $116,700 plus on-road costs, the 3 now starts at $1720 less than before, but includes important upgrades like a new 800-volt architecture for faster charging and more standard equipment.

Thanks to the new 800V architecture, the Polestar 3 can charge 100kW faster at 350kW (dual motor variants), which has improved the 10-80 per cent charge time by 25 per cent to a claimed 22 minutes. A new 250kW/480Nm (+25kW/-10Nm) rear-mounted motor is now fitted to all variants, and all-wheel drive models can now automatically disconnect their front motors to improve efficiency.

The previously optional $9000 Plus Pack is now standard across the Polestar 3 range, adding standard equipment such as a head-up display, an acoustic rear windscreen, Bowers & Wilkins audio with speakers in the front headrests, active noise cancellation, electric steering column adjustment, soft-close doors and a foldable boot floor with luggage hooks.

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The 3’s infotainment system has also seen a big upgrade, thanks to a new Nvidia Drive AGX Orin processor that replaces the previous Xavier unit, which has increased computing power from 30 to 254 trillion operations per second. According to Polestar, that move has increased computing power more than eight times and “enables faster, more intelligent management of active safety systems, battery performance, and sensor data”.

Current Polestar 3 owners will be able to upgrade to the new processor free of charge, with the company already contacting owners to organise fitment.

Polestar has also revised the line-up for the 3, with the Rear motor now the new entry-level model. It uses a smaller 92kWh battery (down from 106kWh) so its WLTP range has fallen by 96km to 604km, but it’s now lighter and quicker as a result with a 6.5-second 0-100km/h time a reduction of 1.3 seconds on the previous model.

Above the Rear Motor sits the Dual Motor, which uses a larger 106kW battery for a claimed WLTP range of 635km (+25km) and now makes 400kW of power and 700Nm of torque (+40kW, -100Nm) for a claimed 4.5 second 0-100km/h sprint time, which is 0.5 seconds less than before.

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At the top of the range continues to be the Performance, which uses a 500kW/870Nm (+120kW/-40Nm) dual-motor set up paired to the same 106kW battery as the Dual Motor for a claimed 593km range (+33km). It hits 100km/h in just 3.9 seconds, which is 0.8 seconds less than before, and has also seen revised anti-roll bars and remapped steering.

Finally, the 2026 Polestar 3 range introduces two new colours: Storm (a dark grey metallic that replaces Thunder) and Krypton (a new green metallic). There are also new interior colour options: ‘MicroTech’ in Nebula (a soft green with repurposed aluminium trim) and Nappa leather in Dune (a sandy colour with black ash trim). The standard interior option is black ‘MicroTech’ with repurposed aluminium trim.

2026 Polestar 3 pricing (excluding on-road costs):

2026 Polestar 3 options:

• Climate pack (heated steering wheel, heated rear seats, heated front wiper blades: $1200 
• Charcoal wool upholstery with repurposed aluminium trim: $1200 
• Quilted ‘MicroTech’ upholstery with repurposed aluminium deco: $900 
• ‘Bridge of Weir’ nappa leather seats in black, beige or white with black ash deco: $6500-$7200 
• 21-inch wheels: $1900 
• 22-inch wheels: $3800 
• Active air suspension (standard on Dual motor Performance): $3200 
• 1.3-megapixel HD LED headlights: $3000 
• Fully automatic electric towbar: $2900 
• Privacy rear window glass: $700 
• Electrochromic glass roof: $2800 
• Premium paint: $2000-$3200

The upgraded Polestar 3 is now on available to order in Australia ahead of the first deliveries in July.

The latest new car sales data from the Federal Chamber of Automotive Industries (FCAI) highlights a worrying trend for some of Japan’s most popular car brands in Australia.

The FCAI’s February data shows that all but two Japanese brands have posted double-digit percentage losses over the first two months of 2026 when compared with the same period last year, including some of Japan’s heavyweight automakers.

Nissan has recorded the biggest drop of the Japanese brands so far in 2026, down 44.7 per cent compared with the same time last year. Nissan Australia has sold 3464 vehicles in the first two months of 2026. This time last year, it had sold 6594 new vehicles.

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Nissan’s poor result came on the back of market share losses for its three biggest sellers – its Qashqai small SUV (down 78 per cent), X-Trail medium SUV (down 49.4 per cent), and Navara dual-cab ute (down 35 per cent). There is some light on the horizon, however, with the imminent arrival of all-new Navara and Qashqai in local showrooms that should see a sales boost for the struggling brand.

Mazda, another powerhouse brand, has reported sales of 14,734 vehicles to start the year, a 13.9 per cent drop compared against last year when it reported 17,119 new car sales. The Mazda3 has taken a big hit in the first two months of 2026, down 34.7 per cent while sales of its popular city-sized crossover SUV, the CX-3, are down 25.3 per cent in the face of stiff competition from a host of challenger brands, mainly from China.

In good news for Mazda, its best-selling CX-5 medium SUV posted strong gains – up 15.4 per cent – despite the expected arrival of an all-new third-generation in July this year which should see a further boost.

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Toyota hasn’t been immune from the sales slump either, the Japanese juggernaut down 25.1 per cent year-on-year. But that slide is set to be reversed with the imminent arrival of an all-new Toyota RAV4 into dealerships in the first quarter of 2026. RAV4 was the world’s best-selling car in 2025, with sales of over one million and it’s conceivable the launch of the new model could see it rocket to the top of the Australian new car sales charts.

The downward trend has affected just about every Japanese brand in Australia: Lexus is down 15.6 per cent, Mitsubishi down 22.9 per cent, Subaru down 22.4 per cent and Suzuki down 32.5 per cent.

Only Honda (up 7.6 per cent) and Isuzu (up 12.6 per cent) recorded growth year-on-year. Surprisingly, Isuzu’s positive result comes off the back of a 61.6 per cent increase in sales of its MU-X SUV, one of just two models the brand offers in Australia. Sales of its D-Max dual-cab ute are down 3.1 per cent.

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Honda’s trio of SUVs – CR-V, HR-V and ZR-V – led the brand’s positive result over the first two months of 2026, sales up 14.7, 11.1 and 6.8 per cent respectively. Only its two ‘traditional’ passenger cars remained in the red, the Civic hatchback down 31.8 per cent, and Accord medium sedan down 57.1 per cent.

So why are Japanese car brands haemorrhaging sales? The single biggest factor remains the influx of new challenger brands from China, which continue to offer a broad portfolio of vehicles across multiple segments that offer previously unaffordable levels of standard equipment at prices that are significantly under-cutting rivals. 

A matter of timing is also a factor, with at least three models – RAV4, CX-5 and Navara – that have traditionally been top-10 sellers in Australia all currently in run-out as dealerships await deliveries of all-new generations over the coming weeks and months. Toyota and Mazda certainly, are well-placed to reverse their respective downward trends while Nissan’s Navara shoulders a heavy 44.7 per cent burden as the brand looks to claw back ground from its rivals.

It might seem like we’re a bit late to the party but it’s taken this long for BMW to hand out the keys to what is its most aggressive M4 variant of the current G82 generation yet – the BMW M4 CS.

Launched globally in 2023, Australia had to wait until the end of 2024 and into 2025 before we could get our hands on the limited-run M4 Competition Sport. Even then, just 50 cars were allocated for our southern outpost.

Now though, BMW has released the hounds and tossed us the keys to not only its fiercest M4 currently available, but also the gates to Bathurst’s iconic Mt Panorama circuit for some unfettered wheel-time to see what the CS is capable of.

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First a refresher. For $254,900 plus on-road costs (some $63,000 more than the M4 Competition and over 80 grand more than the ‘regular’ M4), buyers score the full catalogue of M Division’s CS performance goodies.

The S58 twin-turbo 3.0-litre inline-six makes 405kW and 650Nm, up 15kW over the M4 Competition and a generous 37kW and 100Nm over regular M4. It’s mated to a ZF-sourced eight-speed torque converter automatic transmitting outputs to all four wheels via BMW’s xDrive all-wheel drive system. That combination results in a 0-100km/h claim of 3.4 seconds while 0-200km/h is dispatched in a staggering 11.1 seconds.

It’s a blistering turn of speed, one evident the moment you exit Mount Panorama’s pitlane and stomp on the gas for the long, long drag up Mountain Straight. There’s an urgency to the way the CS reacts, snarling and growling angrily as the speedo runs through the numbers at an unnerving rate.

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The M4 CS is, on paper, the quickest of the three CS models BMW rolled out at Mount Panorama on this day, both to the benchmark 100km/h but also, more tellingly, to the 200km/h mark. And yet, despite its ferocious turn of speed, the M4 in this incarnation feels settled and composed, like there’s more – much more – to give.

Spring rates have been stiffened – by 3 per cent up front and 5 per cent at the rear – along with CS-specific tuning and calibration for the dampers and anti-roll bars. That fettling is keenly felt through some of Mount Panorama’s more challenging sections such as The Cutting and the downhill Esses into the Dipper where the 4.8m long coupe remains beautifully balanced through changes of direction.

Rear-wheel bias (it can be forced into pure RWD for those brave enough) has been engineered into the M4 CS’s all-wheel drive system, resulting in a car with a little more tactility during cornering than just about anything with a friendlier 50:50 front-to-rear-bias. The panacea here is that should you get a little too greedy with the throttle, the CS’s stability control will intervene, feeding more torque to the front wheels, ensuring the M4 doesn’t stray too far off line.

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It breeds confidence from behind the wheel, allowing you to exploit the CS’s abilities further with each successive lap. Tuck the nose in sharply and the CS responds with composure, the rumble of ripple strip evoking ASMR by the shovel-load.

It’s a big part of the M4 CS’s appeal, that ability to flatter even the meekest of drivers looking to shed their cardigan and play race car driver for a day.

Certainly, that’s how I felt as the speedo nudged a scarcely believable 270km/h down Conrod Straight, each successive tug on the carbon-fibre paddle-shifters emitting an explosion of sound, matched gutturally by grin-inducing burbles on downshifts.

The brakes too, standard-fit steelies on our test car (carbon-ceramics are optional, a snip(!) at $19,000), were immense, pulling the 1755kg coupe up in a predictable and entirely controllable manner. No squirming here, just a dip of the nose that tucks into the corner politely before you power through the exit, clipping the next ripple strip just because you can.

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And that’s the thing about the M4 CS, and really, the broader CS range, cars that flatter the driver, allowing you to exploit more performance on the track than you believed you were capable of.

It’s a rare thing that a car engineered with at least one eye firmly on the race track can offer such a confident experience from behind the wheel, it’s rarer still when that confidence can make you feel like a superstar. By that measure, the BMW M4 CS has succeeded.

Specs

The recently launched Denza B5 and B8 off-roaders have taken on and passed a tough Australian off-road test with flying colours: the famously challenging Beer O’Clock Hill in Queensland’s The Springs 4×4 Park.

The feat was completed as part of BYD and Denza Australia’s commitment to improving and fine-tuning its vehicles to meet Australia’s unique and demanding conditions. In this case: steep and slippery low-speed off-road terrain.

The Denza B5 Leopard and B8 six-seater completed the trials with standard factory-fitted ‘DiSus-P’ suspension. The only performance modifications were the fitment of Mickey Thompson Baja Boss All-Terrain 275/55 R20 tyres and software adjustment for traction, torque and throttle calibrations.

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The B5 Leopard was also fitted with a prototype aluminium frontal protection kit and roof rack, both of which Denza will soon introduce as part of a range of OEM-approved off-road accessories.

With both Mountain and Crawl modes activated, front and rear mechanical differentials locked and low-range engaged, both Denza vehicles ascended the 100-metre climb – which has a 55-degree slope (142.8 per cent grade) at its steepest point without stopping.

According to Denza, data from the hardcore evaluation will now be shared with Denza research and development teams in China for validation, with new off-road enhancements to be offered to all B5 and B8 Australian customers via over-the-air (OTA) updates.

Short for “[H]igh-riding [R]evolutionary [V]ehicle”, the Honda HR-V was actually one of the first small SUVs on the Australian market when it debuted in 1999. That HR-V was arguably ahead of its time as SUVs were tiny in comparison with today, but the spirit of the original carries over to the third-generation model you see here. Small SUV competition is much stronger in 2026, so should the HR-V be on your test drive list?

How much does the HR-V cost to buy?

Australians are offered three models in the HR-V range, with the entry-level petrol Vi X kicking things off at $32,900 driveaway. Above that sits the mid-spec e:HEV X ($39,900 driveaway) and the top-spec e:HEV L ($42,900 driveaway), with all three variants well equipped.

Kit on the Vi X includes 18-inch alloy wheels, automatic LED exterior lighting, keyless entry with push button start, a 9.0-inch touchscreen, live services, sat-nav, wired Android Auto and wireless/wired Apple CarPlay and the Honda Sensing suite of active safety features such as autonomous emergency braking, adaptive cruise control, traffic jam assist and auto high beam.

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The hybrid HR-Vs are far better equipped than the petrol model, easily justifying the extra outlay in our opinion. Important safety features like blind-spot monitoring and rear cross-traffic alert are added, as are features like adaptive high beam, part synthetic leather/cloth trim and heated front seats in the e:HEV X, and the upper-spec e:HEV L further adding dual-zone climate control with rear vents, an electric tailgate and automatic rain-sensing wipers.

While it may look expensive to some, we think the HR-V is good value for money in the small SUV range thanks to its nationwide driveaway pricing under the Honda Price Promise.

However, it would be nice to see features such as a panoramic sunroof, roof rails, premium audio and a 360-degree camera from overseas HR-V models added to the Australian model to increase its value further. Same for the dealer-fit wireless charger: It should be standard equipment, as in some other markets.

How practical is the HR-V?

If you’re searching for a practical small SUV, the HR-V should be at the top of your list because it’s one of the best in the segment. That’s thanks to Honda’s Magic Seats, which previously featured in cars like the previous-generation HR-V and the Jazz that used to be sold in Australia.

What makes them so great? Well, in addition to folding completely flat – itself a rarity in the new car industry – the rear seat base also folds up against the backrest so that taller items can be transported in the rear footwell. It’s brilliant and something that really sets the HR-V apart from the competition. Behind the rear seats lies a reasonable 304 litres of space, helped further by a deep extra section, though folding the rear seats transforms that to a huge 1274 litres, which is larger than most of the competition.

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The rear seat is equally practical and two six-foot adults will be more than comfortable thanks to best-in-class headroom and legroom. Amenities include map pockets and door pockets, as well as a central armrest with cup holders. Choose the e:HEV L and rear air vents and two USB-C charging ports are added – we think they should be standard across the range, but at least they’re available unlike many rivals. Notably, the Australian-spec HR-V is a four-seater, if that matters to you.

The front cabin is also quite practical with plenty of storage spaces for life’s trinkets, like sectioned door pockets, two trays underneath the centre console, big cup holders and a big box underneath the central armrest.

Practicality is more than just storage space too, and thankfully in today’s market, the HR-V provides masses of physical buttons to control its features. For example, the climate control buttons – which, by the way, cleverly light up blue if turning the temperature down and red if turning it up – are very easy to use and not buried in the 9.0-inch touchscreen. The touchscreen is the same with its physical shortcut buttons on the side and simple menu structure.

Finally, material quality in the HR-V is reasonable, with a mix of hard and soft touch materials. As you’d expect for a Honda, it feels well built and built to last. The leather used on the steering wheel and gearknob is soft and high quality, and we quite like the warm and tasteful synthetic leather and fabric seat upholstery materials on the hybrid variants too.

How fuel efficient is the HR-V?

Rated at just 4.3L/100km on the combined cycle, the HR-V hybrid is very fuel efficient indeed. It uses a 1.5-litre four-cylinder petrol engine combined with an electric motor and small battery to also provide propulsion and keep the petrol engine switched off for as much as possible. Combined peak outputs are a healthy 96kW of power and 253Nm of torque, while it emits just 98g/km of CO2.

In the real world, the HR-V hybrid has a bit of pep in its step reaching 100km/h from a standstill in around 10 seconds, which is quick for a small SUV. It’s also easy to achieve the 4.3L/100km claimed efficiency and in purely urban driving, it’ll happily use even less than that. Add highway use into the mix – where hybrids traditionally use more fuel – it’s still efficient and will sit at around 5L/100km.

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Also available in the HR-V range is a naturally aspirated 1.5-litre petrol engine, which makes 89kW of power and 145Nm of torque. It’s a fine entry-level engine and is totally fine in purely urban driving, though higher speeds show that it’s not the punchiest or quietest engine. Its claimed fuel consumption is higher at 6.2L/100km as well, and 7.7L/100km in urban driving, making it potentially much thirstier than the hybrid. In our opinion, the hybrid is the HR-V drivetrain to choose as it’s punchier, more refined and more fuel efficient.

What is the HR-V like to drive?

There’s a lot to like with the HR-V’s driving experience, thanks to a compliant ride quality, good steering weighting and general easiness to drive. Thanks to large windows and mirrors, its visibility is plentiful, while seat comfort is good though lumbar adjustment would be nice to have. Though the 18-inch wheels across the range can be a bit firm over larger bumps, it’s otherwise quite comfortable.

The HR-V’s hybrid system is also really impressive from behind the wheel. Rare for a hybrid are its stepped ratios so that it feels more natural sounding like a regular geared transmission when accelerating. It’s also very refined, and the switch between the petrol engine and electric motor providing propulsion is quite seamless. Honda’s excellent engineering is alive and well here.

What warranty covers the HR-V?

Honda covers the HR-V with a five-year/unlimited km warranty with five years of roadside assistance, plus an eight-year battery warranty for hybrid variants. That looks a bit short compared with some rivals, but if owners service their cars at a Honda dealer during that time, they can unlock an extra 12 months of both warranty and roadside assistance up to an impressive eight years in total.

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The HR-V’s service intervals are once-yearly/every 10,000km (whichever comes first), which is a bit short against the 15,000km average of the industry. But the first five years of servicing costs just $995, or $199 per service, which is well below the average cost in the industry.

Should I buy a Honda HR-V?

There’s no question that there are cheaper small SUVs than the Honda HR-V, as well as better equipped and faster ones as well. But many are not as good all-rounders as the HR-V, which manages to tick a lot of different boxes. For starters, it’s easily one of the most practical in this segment (again, the Magic Seats with their unparalleled usability) and counts on the most spacious rear seat in the segment.

The HR-V is also great to drive, very fuel efficient with the hybrid drivetrain, well equipped and covered by a great aftersales package with cheap servicing and up to eight years of warranty if serviced through a Honda dealership. Overall, the Honda HR-V is a great small SUV option that’s not cheap, but genuine value for money.

HR-V specifications:

HR-V Vi X standard features:

• 18-inch alloy wheels (with a tyre repair kit)
• Dusk- and rain-activated LED exterior lighting
• Keyless entry with push button start and automatic walkaway locking
• Rear privacy glass
• Electric-folding mirrors
• Single-zone automatic climate control
• Cloth upholstery
• Leather-wrapped steering wheel and shift knob
• 7.0-inch digital driver’s display
• 9.0-inch touchscreen with Honda Connect live services
• Satellite navigation
• Wired and wireless Apple CarPlay and wired Android Auto
• AM/FM/DAB+ digital radio
• Bluetooth calling and audio streaming
• Four-speaker sound system
• 2x USB ports (1x USB-A and 1x USB-C)
• Eco, normal and sport driving modes
• 6x airbags
• Autonomous emergency braking with pedestrian, cyclist and motorcyclist detection
• Adaptive cruise control with traffic jam assist
• Lane keeping assistance with lane departure warning
• Auto high beam
• Tyre pressure monitoring
• Front and rear parking sensors
• Reversing camera
• Security alarm

HR-V e:HEV X model adds to Vi X:

• Acoustic windscreen
• LED front fog lights
• Upgraded LED headlights with auto-levelling, corner lights, adaptive high beam and scrolling indicators
• Heated front seats
• Part-synthetic leather upholstery
• Two extra speakers (six in total)
• Adjustable speed limiter
• Blind-spot monitoring with rear cross-traffic alert
• Paddle shifters for regenerative brake level adjustment

HR-V e:HEV L model adds to X:

• Auto-folding mirrors with heating and automatic passenger-side kerb view when reversing
• Auto-dimming rear interior mirror
• Rain-sensing automatic wipers
• Dual-zone automatic climate control with rear air vents
• 2x rear USB-C charging ports
• Hands-free electric tailgate with walkaway closing
• Heated steering wheel
• 4x auto up/down windows with key fob operation

China has officially become the biggest supplier of new cars in Australia, overhauling the decades-long dominance of Japan.

According to data released today by the Federal Chamber of Automotive Industries and the Electric Vehicle Council (EVC), cars manufactured in China accounted for over 46,600 sales for the first two months of 2026, eclipsing the 44,614 Japanese-built cars reported as sold.

Japan has dominated the Australian new car sales landscape for decades, the number one source of new cars for Australians since 1998. But China’s emergence as an auto manufacturing superpower has relegated Japan to second place on the sales chart. The strong result came off February sales data where cars built in China notched up around 25,700 sales last month, over 4000 more than Japan’s tally of 21,671.

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Those figures take into account sales of Polestar and Tesla electric vehicles, as reported by the EVC. All but one Tesla variant – the Model Y Performance – are made in China while all Australian-delivered Polestar models are manufactured in China.

Propelling China’s rise to the top are brands like BYD which has seen a 161 per cent increase in sales compared with the same period last year. Chery too is experiencing massive growth, up 99 per cent over the same time.

Japan’s sales meanwhile have been hard hit by declining sales for Nissan (down 44.7 per cent), Suzuki (down 32.5 per cent) and Toyota (down 25.1 per cent).

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However, Toyota’s numbers in particular are set to bounce back from next month as an all-new generation RAV4 (above) hits dealerships. Sales of the current model, just weeks out from the end of its life-cycle, have petered out, its 2480 sales to date this year in stark contrast to the 9481 RAV4s sold over the first two months of 2025.

The federal government is considering changes to tax incentives for electric vehicles as it looks for savings ahead of the May federal budget, with proposals that could scale back benefits for higher-priced EVs.

According to reporting by the Sydney Morning Herald, ministers and Treasury officials are examining options to either reduce, phase out or restrict the existing fringe benefits tax (FBT) exemption for electric vehicles purchased through novated leases. One option under discussion would limit the concession to lower-priced models rather than high-end electric cars.

The move comes as the cost of the policy has expanded far beyond initial estimates, driven by strong uptake among higher-income earners using salary packaging to lower their tax bills. The exemption, introduced in 2022 to accelerate electric-vehicle adoption, currently applies to EVs priced below $91,387.

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When the policy was first announced, it was expected to cost the federal budget around $1.9 billion between the 2022-23 and 2026-27 financial years. Updated estimates suggest the total cost will instead reach about $5.1 billion over the same period.

Demand for EVs through novated leases has significantly exceeded early projections, contributing to the blowout in the program’s cost. The scheme is also expected to remain expensive in coming years, with Treasury forecasts indicating the incentive could cost around $2.8 billion in the 2028-29 financial year alone.

While no final decision has been made, the government is also reviewing the current zero tariff applied to imported electric vehicles as part of a broader assessment of EV policy settings.

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The discussions come as Treasurer Jim Chalmers prepares the May 12 budget, which is expected to include spending reductions and policy adjustments aimed at improving productivity and addressing long-term fiscal pressures.

The FBT exemption was originally introduced as a key mechanism to encourage Australians to adopt electric vehicles. At the time, EVs accounted for less than four per cent of new-car sales nationally. Since then, the share of electric vehicles in the Australian market has risen sharply to around 13 per cent.

A Treasury review of the EV tax concessions was launched late last year, with submissions closing in early February. Its findings are expected to help inform any changes announced in the upcoming federal budget.