Small cars have long been a staple of Australian roads, offering practicality, affordability, and a compact size perfect for city driving. But something has shifted in the market. As of 2025, small car sales are in freefall, and it seems Australians just can\u2019t get enough of small SUVs. The writing\u2019s on the wall for the small car class\u2014so what\u2019s driving this change?<\/p>\n\n\n\n
Let\u2019s start with the numbers. As of November 2025, sales of small cars under $40,000 have dropped by a dramatic 23.6% compared to the previous year, reports Drive<\/a>. Meanwhile, the premium small car segment has also suffered, down 18.9%. Big-name models like the Toyota Corolla and Hyundai i30 saw noticeable declines\u2014Corolla sales were down 22.8%, and Hyundai\u2019s i30 dropped by 13.2%. And if that\u2019s not enough to make you raise an eyebrow, Kia switched from its Cerato model to the new K4, which has seen a staggering 47.5% sales decline compared to Cerato\u2019s 2024 figures.<\/p>\n\n\n\n Interestingly, the only bright spot in the small car market has been the BYD Dolphin EV, which has surged by 58.2%. Despite this impressive growth, though, it\u2019s still far behind traditional favorites in sales, with only 2,983 units sold compared to over 10,000 for the Corolla.<\/p>\n\n\n\n