√Only two car brands remain under the $20,000 threshold in Australia

The number of new cars priced below $20,000 in Australia is shrinking. Here’s what’s available under the price threshold – and which cars no longer makes the cut.

Only two car brands in Australia have new models for less than $20,000 before on-road costs – after the cheapest version of the Fiat 500 hatch was axed and other models received price rises.

Budget brands Kia and MG are the only two car companies in Australia with new vehicles priced below $20,000.

Kia has five models (Picanto S manual and auto, Picanto GT-Line manual and auto, Rio S manual) and MG has two (MG 3 Core and Core with Nav) under the critical price point.

Prior to the pandemic there were more than a dozen cars priced from less than $20,000.

Rising costs have made it more difficult to keep a lid on prices, and now there is another model added to the list of those who have vacated the sub-$20,000 segment – the revised Fiat 500 line-up.

Suzuki axed its last sub-$20,000 model, the Baleno hatch, earlier this year and only dealer stock remains.

Mitsubishi has left the sub-$20,000 market after its $15,000 Mirage hatch was not upgraded to meet new ADR 85 safety regulations.

Before it was axed, the Fiat 500 Lounge manual hatch retailed for $19,550 plus on-road costs – or about $24,000 to $26,500 drive-away, depending on state and territory.

Two Fiat 500 variants remain (excluding the Abarth hot-hatch version), the automatic Lounge and Dolcevita hatchbacks – which have been hit with $1550 price rises, now starting from $23,100 and $25,800 plus on-road costs).

Fiat has slashed the 500 city car range from eight to two variants, the Lounge and Dolcevita automatic hatchbacks – deleting the 500C convertible, only offered in Dolcevita trim, and the manual versions of both hatchbacks and the convertible.

The now-axed Lounge manual hatch base model was the only Fiat in Australia priced below $20,000, at $19,550 plus on-road costs – leaving only only two brands in the sub-$20,000 new-car market, South Korea’s Kia and China’s MG.

There have been no major standard specification changes to accompany the price rises – apart from a change to a body-coloured dashboard (from blue) in the base Lounge, and a tweaked colour palette across the range.

The Fiat 500 was priced as low as $14,000 drive-away in 2013, for a manual Pop model (below) – but compared to today’s base model, it lacks alloy wheels, parking sensors, a touchscreen media system, Apple CarPlay, Android Auto, a digital instrument display, tyre pressure monitors, and more.

Fiat is likely to steer further away from budget buyers next year when the new 500 – now an electric car – arrives, with an expected price closer to $45,000. The petrol-powered 500 range is slated to be axed in the coming years.

The updated range – in production from August, and in showrooms imminently – has however spelled the end for the 500C convertible, and its sporty Abarth 595C twin.

The reasoning for its discontinuation is yet to be confirmed – Drive has contacted Fiat Australia for further details – however it is tipped to be a result of the ADR 85 side-impact crash safety regulation in force for older models last year.

Drive reported last year the Fiat 500C and Abarth 595C would be affected by ADR 85, however it was believed at the time it would be re-engineered to meet the regulations.

Changes have also been made to the Abarth hatchback range, with the 595 renamed to the 695, a few feature tweaks, and a $3450 price rise.

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