Federal Treasurer Jim Chalmers has ruled out any decrease in fuel excise despite the sudden surge in petrol prices caused by US and Israeli military action against Iran.

“When it comes to fuel excise, that’s not something that we’ve been considering,” Chalmers at a press conference on March 4. “We’ve got a lot of cost of living help rolling out in other ways, ways that you’re familiar with, and we’ve got two more income tax cuts on the way as well.”

Australians are not only dealing with the soaring cost of fuel, but potential fuel shortages as well. Those shortages have already started to impact some regional areas.

A move to reduce the fuel excise would not be unprecedented, with the Morrison government halving the tax from 44.2 to 22.1 cents per litre between March and September in 2022 to counteract cost of living and supply chain issues caused by the COVID-19 pandemic.

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The excise is adjusted each year in February and August in line with the Consumer Price Index (CPI) and is currently a hefty 51.6 cents per litre. It has been roundly criticised by some, including motoring bodies around the country.

The concept of the fuel excise was aimed at maintaining the funding into infrastructure, and road maintenance but the governments over the years have been criticised for their apportioning of the tax, with some studies – such as one by the ACCC for the 22/23 financial year – claiming as little as 57 per cent of the excise is directly reinvested back to roads.

Concerningly, former ACCC head, Alan Fels earlier this week accused retailers of ripping off motorists but also conceded there is little – if anything – the ACCC can do about it. Speaking to Sydney radio station 2GB, Fells said the ACCC has a history of not being able to effectively manage petrol price gouging, calling it a toothless tiger. His message for retailers, though, was clear.

“It’s just exploitation, it’s just opportunity,” Fells said. “The price will go up if retailers think the demand is there and people are worried and so they’re buying a bit more and it’s easy to put the price up.”

For his part, Treasurer Chalmers reckons he’s pulled the right reign with the ACCC. “I’ve taken, I think, an important step in making sure that the ACCC is helping to ensure that service stations don’t do the wrong thing by people when it comes to oil prices flowing through at the bowser,” Treasurer Chalmers said.

Ultimately though, Australians are currently paying more to fill up their vehicles than they should be, and there appears to be no end in sight. Regional Australians might be in even bigger trouble if supply starts to run short.

“We’ve found other ways to help people with the cost of living – cheaper medicines, more bulk billing, student debt relief, tax cuts and the like,” Treasurer Chalmers said in defence of his decision.

Cupra Australia has announced local arrival timing and pricing for its new Formentor VZ5 high-performance small SUV. Due in December 2026, around nine months after the regular Formentor range launches in updated form, the Formentor VZ5 is priced from $94,990 plus on-road costs ($101,990 driveaway). It uses Audi’s iconic 2.5-litre five-cylinder engine, making it the fastest production Cupra ever, and the initial batch is limited to just 100 cars.

Making 287kW of power and 480Nm of torque, the 2.5-litre five-pot engine in the Formentor VZ5 puts power to all four wheels via a seven-speed dual-clutch transmission. The 0-100km/h sprint is dealt with in just 4.2 seconds and it hits an electronically limited top speed of 250km/h.

Also used in the Audi RS3 and RS Q3, the engine is “recalibrated to deliver an even more emotive, character‑rich driving experience” by Cupra to differentiate it from those Audi models.

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Above the regular Formentor range, the VZ5 adds:

VZ5 interior features:

The only options available for the VZ5 are premium paint (+$790) or matte paint (+$3,300).

The VZ5 marks the first pricing announcement for the facelifted Formentor range, the rest of which is due quite soon into Cupra dealerships.

Cupra Formentor VZ5 pricing (driveaway):

The first Australian deliveries of the Cupra Formentor VZ5 will commence in December 2026.

BMW’s Neue Klasse era has almost arrived in Australia with the company announcing local pricing for the new iX3 electric mid-size SUV ahead of its mid-year arrival. Pricing starts at $109,900 plus on-road costs for the launch iX3 50 xDrive variant, which is almost $19,000 more than the cheapest version of the previous iX3, but there are significant improvements in range, performance and standard equipment to justify the increase.

The iX3 sits on a new platform that can accommodate charging speeds of up to 400kW, which is one of the highest in the industry, while its huge 108.7kWh battery enables a WLTP-rated range of up to 805km depending on wheels selected. Its charging timing stats are impressive: 350km of range can be added in just 10 minutes of charging, and a 10 to 80 per cent charge can take as little as 21 minutes (with an appropriately DC fast charger).

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At launch, only the 50 xDrive variant will be available in the iX3 range, with more due to be launched later. The 50 employs a dual-motor set-up making 345kW of power and 645Nm of torque, which is enough grunt for a claimed 4.9-second 0-100km/h sprint time and a 210km/h top speed.

In contrast, the previous iX3 was rear-drive only, made 210kW/400Nm and was rated at a range of 460km from its 80kWh battery.

Standard equipment for the iX3 50 xDrive is lengthy, including a configurable 43.3-inch panoramic screen at the bottom of the windscreen, a 17.9-inch touchscreen, a 3D head-up display, 20-inch alloy wheels, a panoramic glass roof, ‘Veganza’ synthetic leather upholstery, heated electric front seats with memory, Karman Kardon audio, wireless Apple CarPlay and Android Auto, live services and a full suite of active safety features.

Further reflecting BMW’s value positioning for the iX3 in Australia, only a handful of options will be available, including the $3500 M Sport Pro package, $2500 tow bar preparation and various colour and wheel options.

Against competition such as the Audi Q6 e-tron quattro (from $122,500 plus on-road costs), Polestar 3 ($116,700 +ORC) and Genesis Electrified GV70 ($132,800 +ORC), the iX3 is capable of faster charging and travelling further on a charge.

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2026 BMW iX3 pricing (excluding on-road costs):

iX3 50 xDrive$109,900

BMW iX3 50 xDrive standard equipment:

iX3 50 options:

Porsche is considering merging the Taycan and Panamera into single, unified model line, with petrol, plug-in hybrid and fully electric variants.

With a global downturn in sales and the enormous costs associated with the scale back in Porsche’s electrification plans, further model rationalisation might be on the way, a report in Autocar claims. Former CEO Oliver Blume made the call to scale back electrification last year, and new CEO Michael Leiters has signalled model unification as another way to reign in development spending.

“The automotive industry, and especially Volkswagen, have never faced so many headwinds at the same time,” former CEO Blume said last year at the 2025 IAA Munich, Europe’s largest auto show.

At the time of his appointment, Leiters was touted as being chosen to make a deliberate shift in the direction the German manufacturer was taking, with the focus being on the balancing of both combustion and hybrid technologies rather than all-out focus on electrification. “That is why we have structurally realigned the company this year, and comprehensively expanded our product strategy,” Blume said at the time.

Porsche Taycan Turbo S 2019
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Underpinned by different platforms – although both performance saloons – Taycan and Panamera have significant different body styles, and therefore separate, expensive development programs.

Panamera sits on Porsche’s MSB platform, a platform also used for the Bentley Continental GT. As reported previously, that architecture is soon to be replaced by the newer PPC platform when the third-gun Panamera arrives closer to 2030.

Autocar reports that Taycan meanwhile, rides on the J1 platform, shared with the Audi E-tron GT and previous reports suggested that its successor was expected to use the now-delayed SSP Sport platform.

Porsche is no different to any other manufacturer at the moment, wrestling with the soaring costs of EV development eating into profitability, and is therefore assessing the long-term viability of plans previously put in place. They include running the Taycan and Panamera as completely separate R&D and engineering programs.

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The Macan program is the one to study, according to Autocar, with that model already operating parallel architecture across internal-combustion and electric models in several markets, despite the two different platforms underneath. It’s unclear as yet whether the rationalisation would see the use of the Taycan or Panamera name.

The numbers in play – and the cost to the manufacturers – are huge. Porsche has already written down 1.8 billion Euros related to delayed platform development and has warned of continued reductions to profitability.

You’re no doubt wondering why this month’s Modern Classic features a Ferrari F1 car.

But with Australia fresh from another visit of the Formula One show, and with the new 2026 regulations throwing up one of the biggest changes the sport has seen over its 76-year history, the prospect of a change to the pecking order looms large.

Certainly Ferrari, a team that needs little introduction, will be hoping so. Too many years in the doldrums – Ferrari’s last GP victory came back in 2024 at the hands of Carlos Sainz, while the Scuderia last tasted championship success in 2007 when Kimi Raikkonen secured an unlikely triumph – have tested the patience of the Tifosi who enter every new season with devout hope that this year will be their year.

It’s not new ground for Ferrari and its devoted fans. Wind the clock back to 1992 and the story sounds all too familiar. In 1990, Ferrari had come within a whisker of winning the world championship. Its star drivers, Alain Prost and Nigel Mansell, secured six grand prix wins between them to end the year second in both the drivers’ (Prost) and constructors’ championships.

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Hopes then, were understandably high for the 1991 season. Prost remained on board while Mansell had departed for Williams, his replacement a young Jean Alesi. The Ferrari 642, an evolution of the 641 which had enjoyed so much success the previous year, was also draped in feverish optimism. But hope is fickle and the 642 was no match for its rivals from McLaren and Williams. Too old, too slow, too fragile, the 642 was banished to history before the halfway point of the season, replaced by the hastily updated 643.

Despite showing early promise (Prost finished second on the 643’s debut in France), the story remained the same, with lacklustre performance and a spate of mechanical retirements prompting a rare outburst from Prost who famously said “a truck would be easier to drive than this car”. Unimpressed, Ferrari sacked the Frenchman before season’s end, a season where the Scuderia went winless for the first time since 1986.

And that’s where the story of the car seen here begins…

Maranello needed a fresh start after the disaster that was 1991. Sweeping changes were needed. With Prost out of the picture, Alesi, with just three seasons of F1 under his belt, inherited the role of team leader, while another young Italian hot shoe, Ivan Capelli, was drafted in as his sidekick.

Behind Maranello’s unassuming gate, the broom of failure swept through the management team. Out went Piero Fusaro who had taken over the reins of Ferrari following Enzo’s death in 1988. His tenure as President of the company ended in 1991 when, looking – in part at least – to rekindle its glory days on the race track, Fiat’s Gianni Agnelli brought back the charismatic Luca di Montezemolo.

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Di Montezemolo was well-loved within Ferrari, his two years as sporting director netting the Scuderia the 1975 Drivers’ World championship for Niki Lauda, and the Constructors’ trophy. If ever there was someone who could rekindle the flames of that success, it was the aristocratic di Montezemolo.

Meanwhile the team’s technical director, Steve Nichols, who had been lured to Ferrari in 1989, left at the end of 1991. Nichols’ departure was a bitter blow for the Scuderia, the Brit having overseen McLaren’s late-80s F1 dominance, a culture of success that Ferrari had hoped he would bring to Maranello. It wasn’t to be. In his place, di Montezemolo brought in another Brit, Harvey Posthlewaite.

And renowned Ferrari engine builder, Claudio Lombardi, who had stepped in as interim team principal following the departure of the legendary Cesare Fiori, went back to the engine workshop at the end of the season. Fiori’s departure halfway through the ’91 season was emblematic of the strife Ferrari was in, sensationally quitting the team after the Monaco Grand Prix in – according to Ferrari – a pique of “anger” at the escalating tensions within the team.

Taking on what is the poison chalice of Ferrari team principal for 1992, and at the personal request of newly installed il presidente di Montezemolo, was Sante Ghedini.

The new car was already well underway by the time Ghedini took the reins. As Ferrari’s annus horibilis of 1991 unfolded, the decision was taken to begin work on the 1992 car. Nichols and chief designer Jean-Claude Migeot, realising the futility of trying to further develop the 643, tossed the blueprints in the bin and started with a clean sheet of paper for what would become the F92A. And in the spirit of nothing ventured, nothing gained, they went radical.

Migeot had made a name for himself at Tyrrell where his radical high-nose design would go on to revolutionise Formula One. The premise was simple enough. With aero efficiency such a key part of an F1 car’s performance, Migeot had realised that an F1 car’s low, almost ground-hugging nose disrupted the flow of air to the underbody. And less air meant less downforce, and less downforce is anathema to an F1 car.

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His solution to raise the nose above the flow of air to the underbody was as radical as it was genius and in the hands of Alesi – who finished second behind Ayrton Senna at Monaco, adding to his second-placed finish at Phoenix earlier in the year – the small Tyrrell outfit punched far above its weight in 1990. Little wonder then, that the under-performing Ferrari came calling and by 1991, the French aerodynamicist was hard at work on the following season’s Ferrari.

Applying the same principles as he had at Tyrrell, Migeot’s design for the F92A featured a raised nose that allowed the free flow of air under the car where a radical double-floor funnelled that air straight through to the rear of the car unimpeded.

It was a simple premise. The car was attached to a flat floor that closely followed the contours of the F92A’s shape. But, Migeot added a second floor, attached to the first via stilts, leaving a 15cm gap between the two. That created a channel allowing unimpeded airflow from the front to the rear of the car, creating a Venturi effect: ground effects in other words in an era where ground effects was banned. Certainly early wind tunnel results confirmed the efficacy of Migeot’s design, with downforce dramatically improved and only a minimal increase to drag.

But Migeot’s radical design didn’t come without compromise. To accommodate the double-floor and raised nose, Ferrari’s technical team needed to repackage the F92A’s components. The big ticket items were the transmission and suspension. Out back, a new six-speed semi-automatic transmission replaced the seven-speed of its predecessors while up front the suspension geometry was overhauled. Still featuring a conventional push-rod design, a new single-spring damper was used to minimise space under the raised nose. The rear suspension was carried over from the previous car although the 3.5-litre V12 powering the F92A was all new for 1992.

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On paper, the F92A had all the ingredients of being a potential winner. After all, its outside-of-the-box thinking had potential to upset conventional F1 design and return Ferrari to championship glory.
Behind the scenes at Maranello, however, not everything was running smoothly. Development delays meant the F92A wasn’t unveiled until February 6 with the car’s shakedown getting underway, at dusk no less, the following day, just 23 days before the start of the season. That might seem the norm today, but remember in those days there were no limits to testing, and Ferrari held the extra advantage of its own test track, Fiorano, a stone’s throw from Maranello where the cars were built.

Pre-season testing proper moved to Estoril and here the first cracks began to appear. Capelli used the 1991 car to set a benchmark time, before swapping into the F92A.

As he later recalled to Britain’s Motorsport magazine: “When I did my first lap with the F92A at Estoril I realised that compared to the ’91 car, it wasn’t a very good step. It was a strange concept, which didn’t work at all. I immediately said to Migeot that I had some doubts that the car would work.”

Alesi, for his part, tried to remain upbeat, but when the start of the season rolled around in South Africa just three weeks later, it soon became apparent that Ferrari had a struggle on its hands.

Alesi (below) qualified fifth, Capelli ninth. But the pace of the F92A left a lot to be desired, Alesi 1.7 seconds off Mansell’s pole time in the Williams, Capelli an embarrassing 2.9 seconds. It didn’t get much better in the race, both Ferrari’s retiring with engine failures.

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That should have signalled a warning that perhaps not everything was right with the new Tipo 040 V12 which suffered from lubrication issues, cutting out during the faster corners and ultimately causing the V12 units to detonate.

Things only got worse at the next race in Mexico, Alesi qualifying 10th, over three seconds off Mansell’s pole time while Capelli recorded the Scuderia’s worst qualifying result in over a decade, an embarrassing 3.8 seconds off the pace in 20th place. To compound Ferrari’s embarrassment, the minnow BMS Scuderia outfit, using the previous year’s Ferrari V12, out-qualified both Alesi and Capelli.

The race didn’t fare much better, the bumpy nature of the Autódromo Hermanos Rodríguez negating any aero advantage the F92A might have enjoyed. Worse still, the lubrication issue that had supposedly been fixed reared its oil-starved head again, Alesi retiring with another engine failure.

Ferrari was deep in crisis mode. Publicly, Migeot’s revolutionary aero design was made the scapegoat, but internally it was well-known that the V12 lay at the heart of the performance problem.

As Alesi later recalled in an interview with French auction house Artcurial, the V12 was sacred and any public criticism of its performance would not be tolerated by Ferrari. But, as Alesi revealed, “we were being penalised by a phenomenon known as ‘blow-by’. This means that the pistons pump the oil that is at the bottom of the sump. This causes you to lose a little performance, but at the same time you quickly run out of oil and break the engine.”

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The solution was to install a second oil tank in the car which was activated by pressing a button in the cockpit labelled ‘P-ON’, which would then transfer the oil from the ‘reserve’ tank into the engine.
Additionally, to address the V12’s reliability problems, Ferrari deliberately limited engine speed, thereby reducing power. In Mexico, this resulted in Alesi’s Ferrari recording speed trap times an insurmountable 15km/h down on the front-runners.

Despite the disastrous start to the season, there were glimmers of hope. In Brazil, both Alesi and Capelli finished in the points while in Spain, with rain and a wet track negating any power advantage and with Migeot’s aero design fully on show, Alesi finished a gallant third behind Mansell’s Williams and the Benetton of Michael Schumacher.

The rest of the season quickly descended into one of Ferrari’s worst. Alesi scrambled to another third-place finish in Canada, and added a further three minor points finishes to his tally. His retirement count for the season ran to 10. It was an even bleaker picture for Capelli, who later described the F92A as “the worst car I’ve ever driven”, scoring only twice throughout the year, his F92A retiring on 11 occasions. He was sacked two races before the end of the season, replaced by Ferrari reserve driver Gianni Morbidelli.

Capelli wasn’t the only scapegoat for what had been one of Ferrari’s worst seasons ever. Migeot too was shown the Maranello door, although later he took consolation that his innovative ‘raised nose’ concept became the norm in F1 by 1996, adopted by every team in pitlane.

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Certainly, the F92A won’t go down in history as one of Ferrari’s best, the Scuderia finishing fourth in the constructors’ championship with just 21 points.

But, as terrible as it was, the F92A did bring a lasting and enduring legacy to Ferrari. Incensed with the team’s poor showing in ’92, and determined to put the team back on the right path, di Montezemolo lured Jean Todt from Peugeot to the Scuderia in 1993 to begin the process of rebuilding.

It took several years for Todt to assemble his ‘dream team’ of Schumacher, Ross Brawn and Rory Byrne, and then several more before the Scuderia returned to the summit of F1. But once Ferrari did, there was no stopping it, winning five consecutive drivers’ titles from 2000-2004 and six straight constructors’ championship from 1999-2004.As for Alesi?

He remained with Ferrari until the end of 1995, scoring what would be his lone GP victory in Canada that same year, scant reward for a driver who had seen the Scuderia through its darkest days only to be pushed aside once Schumacher became available. We’ll never know what Alesi could have achieved had been at the right team at the right time.

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This story first appeared in the March 2026 issue of Wheels magazine, now on sale. Subscribe here and gain access to 12 issues for $109 plus online access to every Wheels issue since 1953.

Audi CEO Gernot Dollner says that faltering EV sales and strong consumer interest in petrol engines will ensure ICE vehicles will endure for another decade yet.

As a result the German manufacturer will approach its powertrain solutions with more flexibility, Dollner told Car And Driver.

Australian new car sales are similar to other developed markets around the world – that is interest in electric vehicles is slowing, and in some instances flattening out completely. The revolution we were told would happen in short order, hasn’t materialised as indicated.

In markets like the United States, the move to EVs has slowed so much that many analysts are prepared to say its on life support. Manufacturers forced into EV development are now faced with a showroom line-up that doesn’t reflect the interest of the buyer, and Audi is adamant that it can deliver what its customers still want.

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Dollner told Car and Driver that Audi will take a measured approach over the next 10 years, with development cash a critical focus on both how and where it is spent.

“The drivetrain concepts will definitely swing back to internal combustion,” Dollner told Car and Driver. “That’s what we see right now, and I don’t know if battery-electric will come back that fast.”

EV sales in the United States provide a fascinating insight for our market here, with sales growing steadily on the back of federal EV tax credits. The elimination of those credits in 2025 slowed that climb though, leading several manufacturers to pause of cancel EVs previously designed to make their way to the US. With talk about Australia ending its EV incentives, a similar thing could happen here.

The hysteria that follows that logic though, usually revolves around Australia becoming a dumping ground for old, internal combustion technology. Australia, like the US, is an SUV and dual-cab heavy market, vehicles which haven’t been well served by electrification so far. That doesn’t mean though, that we’d be likely to see less electric vehicles make their way here. Dollner said he doesn’t see it that way for the US either.

“Markets are so dynamic, and every market has its speciality,” he said. “So, the US has these rugged SUV and pickup segments, quite ICE-heavy consumer landscape. China is ahead on battery electric, but has a backswing to extend-range and even plug-in hybrid. There are a lot of dynamics, so it isn’t too easy to tell where the road is heading.”

Dollner went on to explain that while EV development will absolutely continue, Audi will continue to hone its current platforms for petrol only and hybrid powertrains.

“I don’t see necessarily new platforms,” he explained. “But I see further development of platforms to bring the next level of electronics and bring some degree of more hybridisation.”

MG Motor Australia has confirmed that the new MG4 EV Urban will launch in Australia in April, sitting underneath the MG4 already on sale but with a more affordable price tag.

At launch, the MG4 EV Urban will offer two LFP battery sizes in Australia: a smaller 43kWh standard range and a larger 54kWh extended range. Based on UK specifications, the former can travel 325km on a charge and the latter 415km. Importantly, both batteries can charge from 10 to 80 per cent in around 30 minutes at a maximum rate of 82kW for the smaller battery and 87kW for the larger one.

In the UK – Australian power figures are yet to be announced – the smaller battery is paired with a 110kW/250Nm front-mounted electric motor, with the latter using a slightly more powerful 118kW (still making 250Nm) motor instead, likely to account for the larger battery’s extra weight.

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In the UK market, where it has already been updated, the regular MG4 is available with either 64kWh or 77kWh batteries, with the smaller 51kWh unit removed to make way for the MG4 EV Urban. That is a change we’re expecting for Australia as well.

Billed as a more comfort-focused and practical EV compared with the sportier MG4, the MG4 EV Urban is actually bigger and more spacious than its sibling. Measuring 4395mm long, 1842mm wide, 1549mm tall and 2750mm between the wheels, the Urban is 108mm longer, 6mm wider, 33mm taller and 45mm longer between the wheels than the MG4. Based on UK specifications, its 1364-litre boot (with the rear seats folded) is around 200L larger than the 4.

Inside the MG4 Urban is a similar cabin to the MGS5 EV electric small SUV, with a 15.6-inch touchscreen featuring wireless Apple CarPlay and Android Auto, a 7.0-inch digital driver’s display, physical air-conditioning and volume controls, and a large centre console with a wireless phone charger. The MG4 will receive a similar cabin design when it’s launched.

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Australian pricing for the MG4 EV Urban is yet to be announced, but in the UK, there’s a £6500 (AS12,360) price difference between the two and we’re expecting a low-$30,000 price for the Urban once it reaches our shores. For reference, the UK-spec MG4 EV Urban starts at £23,495 (around A$44,700) and the MG4 at £29,995 (A$57,200).

The MG4 EV Urban will go on sale in Australia in April, with local pricing and specifications to be confirmed then.

At first glance, the new plug-in hybrid Audi RS 5 appears to contradict everything enthusiasts traditionally love about performance cars. It weighs close to 2.5 tonnes, carries a battery pack and relies on hybrid technology. On paper, that might sound like a recipe for disappointment.

Yet Audi Sport’s engineers have managed to turn that expectation on its head. The latest RS 5 combines electrification with serious performance hardware to produce a machine that feels far more athletic than its hefty kerb weight suggests.

Unveiled recently as the latest addition to Audi’s RS performance line-up, the new model has sparked debate among purists. For the first time, the famous RS badge has been paired with a plug-in hybrid powertrain, and that decision inevitably adds mass. Compared with the outgoing RS 4, the new car is roughly a third heavier and slightly larger overall.

But Audi’s development team insists the electrified approach brings significant benefits — and those advantages become clear as soon as you get behind the wheel.

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Electrified power with serious punch

The new RS 5 is powered by a 2.9-litre twin-turbocharged V6 petrol engine paired with an electric motor integrated into the transmission. The petrol engine alone produces around 375kW, while the electric motor contributes an additional 130kW.

Combined output stands at a remarkable around 470kW, representing roughly a 50 per cent increase in power compared with the previous model.

Performance figures are correspondingly impressive. Audi claims the RS 5 can accelerate from 0–100km/h in just 3.6 seconds, helped by a temporary ‘Boost’ function that unleashes the full 825Nm of torque.

On an open stretch of road, the car feels brutally quick. Acceleration builds instantly thanks to the electric motor’s immediate torque delivery, while the V6 provides the familiar surge of turbocharged power higher in the rev range.

Even without engaging launch control, the RS 5 launches forward with remarkable urgency.

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Handling that defies the weight

What’s most surprising, however, is how well the RS 5 handles its substantial mass. Audi has equipped the car with an advanced torque-distribution system that can actively send power between the rear wheels in milliseconds.

Working together with the electric motor and the rear differential, the system enhances both grip and agility.

The result is a car that feels far more nimble than its dimensions suggest. Steering is sharp and precise, and the chassis maintains impressive composure through fast corners. Wide performance tyres and a carefully tuned suspension setup help keep the car planted when pushed hard.

In standard RS driving modes, the car delivers controlled and confident performance. But switch to the more playful Torque Rear mode, and the RS 5’s personality changes dramatically.

Suddenly the rear axle becomes more lively, allowing enthusiastic drivers to provoke controlled slides. It’s a playful feature that demonstrates Audi hasn’t forgotten how to make a performance car entertaining.

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Performance meets practicality

Audi has also embraced technology that appeals to a new generation of enthusiasts. The infotainment system includes software capable of recording drift angles and performance data, letting drivers analyse their driving sessions later.

The car’s design reflects its aggressive performance intent. Flared wheel arches, prominent side skirts and large air intakes give the RS 5 a muscular stance, while twin exhaust outlets reinforce its sporting credentials.

Yet despite its dramatic appearance and impressive speed, the RS 5 remains comfortable enough for everyday use. The suspension delivers a refined ride during relaxed driving, making it well suited to commuting or long highway journeys.

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Electric driving for daily use

The plug-in hybrid system also allows the RS 5 to travel around 80 kilometres on electric power alone, thanks to a 22kWh battery pack.

In EV mode the car can operate quietly and efficiently, making it ideal for urban driving or short daily trips without using petrol.

Pricing for the new RS 5 is expected to start at roughly $180,000 before on-road costs when it reaches Australian showrooms.

While it certainly isn’t cheap, the latest RS 5 demonstrates that electrification doesn’t have to dilute performance. In fact, Audi’s newest RS model shows how hybrid technology can elevate both speed and versatility — delivering the thrill of a sports car alongside the practicality of a modern performance wagon.

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In 2025, 733,831 SUV models of different sizes, with different drivetrains and from different manufacturers were sold in Australia. That represents 60.7 per cent of the overall new car market, and it’s a stark contrast to even five years ago when passenger cars were more prominent.

Models such as the Toyota RAV4, Ford Everest and Mazda CX-5 tend to hog all the headlines as some of the biggest volume sellers in the market, but how about models that aren’t as high profile? Here are 10 great SUVs that you should know more about:

MGS5 EV

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Price: From $40,490 driveaway
Drivetrains: Single-motor electric, up to 125kW of power, up to 515km of range
2025 sales: 1857
Why you should consider it: It uses the same bones as the sweet MG4 hatchback but with more practicality

We were quite impressed with the MGS5 EV when it launched last year and while sales have been reasonable, we expected it to be more popular. Attractively priced from just $40,490 driveaway, the S5 is a great small electric SUV option and a far better product than the ZS EV that it replaced. Using a 125kW rear-mounted motor, it’s solid to drive and it offers a healthy range up to 515km. The interior is also high quality, the tech is easy to use and it’s practical.

KGM Torres 

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Price: From $38,000 driveaway
Drivetrains: 1.5-litre turbo-petrol, 1.5-litre turbo-hybrid or dual-motor electric, up to 152kW of power, up to 462km of range (EV)
2025 sales: 288
Why you should consider it: It offers petrol, hybrid or electric power and is a good all-rounder

It’s fair to say that KGM’s sales aren’t exactly firing up the charts at the moment, and we think that’s a shame because it offers a lot to Australians. Take, for example, the Torres mid-size SUV. It’s great value for money, is well equipped across the range, practical and offers a choice of petrol, hybrid or electric drivetrains. Pricing starts at just $38,000 driveaway, putting it in direct competition with more popular cars like the GWM Haval H6, but the Torres is also worth a look.

Skoda Elroq

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Price: From $49,990 driveaway
Drivetrains: Single-motor electric, up to 210kW of power, up to 529km of range
2025 sales: 253 (it only went on sale in September)
Why you should consider it: It’s great value for money and mechanically impressive

It’s only been on sale since September 2025, but the Skoda Elroq small electric SUV deserves more attention. Priced from $49,990 driveaway, the Elroq is solid value for money and even the entry-level 60 Select variant is well equipped, drives well and can travel up to almost 400km on a charge. Being a Skoda, it’s well packaged and features many ‘simply clever’ features – plus, it’s also covered by a seven-year/unlimited km warranty.

Hyundai Ioniq 5

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Price: From $76,200 plus on-road costs
Drivetrains: Single- and dual-motor electric, up to 448kW of power, up to 570km of range
2025 sales: 626
Why you should consider it: It’s a breakthrough EV: great to drive and great to sit in

The Hyundai Ioniq 5 was one of the first big electric vehicle launches in Australia that wasn’t a Tesla, and while sales have been modest since, there’s no denying that it’s a great car. It offers fast charging, it’s good to drive, quite practical and there are a range of different models to choose from, including the fire-breathing Wheels COTY-winning Ioniq 5 N. Pricing starts at $76,200 plus on-road costs, though Hyundai currently has the entry-level model on special for $71,990 driveaway.

Nissan Qashqai

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Price: From $45,640 plus on-road costs
Drivetrains: 1.5-litre turbo-hybrid, 140kW, 4.1L/100km
2025 sales: 4478
Why you should consider it: It’s got Nissan’s latest e-Power hybrid system with serious efficiency improvements

The Qashqai has been one of Nissan’s biggest global success stories since its initial debut way back in 2006, and is an influential model in creating the modern small SUV segment. Australians haven’t warmed to it like Europeans did, however, but we think it’s worthy of consideration. Nissan’s latest e-Power hybrid system has been made even more fuel efficient and is now rated at just 4.1L/100km. The best part? It’s standard across the MY26 Qashqai range.

Honda ZR-V

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Price: From $37,900 driveaway
Drivetrains: 1.5-litre turbo-petrol or 2.0-litre hybrid, up to 135kW of power, as low as 5.0L/100km
2025 sales: 3940
Why you should consider it: It’s a great all-rounder and offers value pricing

The Honda ZR-V is a reasonable seller in Australia, though not to the level we think it deserves. Pricing starts at just $37,900 driveaway and even the entry-level VTi is well equipped, though the LX models are absolutely loaded. The ZR-V’s cabin is filled with soft-touch materials and it feels premium throughout. It’s a pleasure to drive and can be quite fuel efficient in hybrid form. If you’re searching for a small SUV under $50,000, the ZR-V needs consideration.

Ford Mustang Mach-E

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Price: from $65,990 plus on-road costs
Drivetrains: Single- or dual-motor electric, up to 434kW of power, up to 600km of range
2025 sales: 483
Why you should consider it: It’s one of the better electric SUVs to drive

Perhaps the most controversial car on this list, the Mustang Mach-E is famed for “not being a real Mustang“, according to its skeptics. That quibble aside it’s actually a pretty good car – satisfying to drive, competitive with range, practical and even in base form, well equipped. The high-performance GT is a hoot to drive as well, and very quick, hitting 100km/h in just 3.7 seconds.

Volvo EX90 

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Price: From $124,990 plus on-road costs
Drivetrains: Dual-motor electric, up to 380kW, up to 570km of range
2025 sales: 209
Why you should consider it: Its cabin is spacious, luxurious and full of lovely materials

Volvo’s luxurious flagship EX90 seven-seat electric large SUV hasn’t been that big of a seller locally – the similarly-priced ICE XC90 that it was meant to replace outsold it almost four to one in 2025 – and yet it offers a lot to buyers. You won’t find a more relaxing and luxurious cabin for the money, and it’s also quite spacious. Add in faster charging with the MY26 update and it’s a strong offering at the more premium end of the market.

Kia EV9

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Price: From $97,000 plus on-road costs
Drivetrains: Single- or dual-motor electric, up to 374kW of power, up to 512km of range
2025 sales: 269
Why you should consider it: It’s huge inside and the new GT model is quick

Like the EX90 above, the Kia EV9 electric seven-seat large SUV hasn’t sold amazingly well in Australia and we think that’s a shame. While it’s not as luxurious inside as the EX90, it starts with a price tag $25,000 less and its interior is even larger. Seven adults will be totally comfortable in the big EV9, and its driver will be satisfied too as it’s a nice drive considering its heft and size. It bears futuristically styling and looks expensive, which counts for a lot when you’re spending this much money on a new car.

Hyundai Inster

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Price: From $39,000 plus on-road costs
Drivetrains: Single-motor electric, up to 85kW of power, up to 360km of range
2025 sales: 467
Why you should consider it: Just look at it. It’s so funky and cute!

The Hyundai Inster is also a car that should be selling better because it’s an ideal city-sized EV. Firstly, it’s insanely practical for a vehicle that size thanks to sliding rear seats and its boxy shape. Secondly, it drives well and even though it only produces up to 85kW of power, it’s more than peppy enough for ample propulsion around town. Sure, it’s not cheap to buy, but Hyundai’s deals help – the base model is currently on special for $35,990 driveaway, for example – and make it better value for money. Finally, it’s got so much character and in an era with a sea of the same bland SUV styling, cars with character need to be celebrated.

The March 2026 issue of Wheels magazine, on sale Monday March 9, featuring the awe-inspiring Mercedes-AMG GT 63 Pro on the cover.

Our feature drive of the GT 63 Pro reveals how the latest beast from Affalterbach builds on the reputation of its aggressive predecessor while adding greater usability for everyday driving – all without compromising the performance credentials that define the AMG brand.

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Trent Nikolic takes a closer look at IM Motors, the premium offshoot of Chinese brand MG, and its ambitious push into the global luxury EV market via its advanced “digital chassis” technology. A timely look at the role software and electronics will play in shaping the next generation of electric vehicles.

This month’s comparison pits two of Australia’s most popular hybrid medium SUVs – in the shape of the Hyundai Tucson Hybrid and the GWM Haval H6 Ultra Hybrid (below) – against each other, both in front-wheel-drive form. The test asks a simple but relevant question for many buyers: is all-wheel drive really necessary for family SUVs in everyday Australian driving conditions?

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Inspired by events such as the Goodwood Revival in the UK, Wheels also visits Western Australia’s Red Dust Revival, a festival bringing together enthusiasts and historic machines in a uniquely Australian tribute to the country’s motoring heritage.

The Wheels Interview spotlights Honda Australia boss Jay Joseph (below). A 25-year Honda veteran, Joseph discusses the challenges of rebuilding the brand’s fortunes locally and outlines the strategy behind Honda’s next phase in the Australian market.

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Our First Drives section this issue tests Hyundai’s upcoming Elexio electric SUV, Kia’s Tesla-chasing EV4, the new Denza B5 plug-in hybrid, BYD’s Sealion 5 PHEV and the Lexus LC500 Convertible – one of the last naturally aspirated V8 grand tourers still on sale.

Former federal industry minister Nick Minchin also contributes a guest column, reflecting on the decline of Australian manufacturing. Minchin argues that the closure of local car production marked a turning point for the country’s industrial base, blaming his own party for the loss of advanced manufacturing capability and the economic implications it had beyond the automotive sector.

Regular sections round out the issue, including Garage, Marketplace, the comprehensive 22-page Buyer’s Guide and the nostalgic Wayback Machine, which revisits Wheels coverage from March 1984 and Holden’s ambitions at the time.

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