Shock bargains! A new Toyota can still cost less than its Kia rival, as we see how cheap a Picanto, Rio and Cerato really are against MG3, Yaris and Corolla as well as the Mazda2 and Mazda3

Like most carmakers fuelled by the heady mix of high demand and low stock, Kia is on a roll in Australia.

In the first five months of 2022, Kia’s sales are up 3.1 per cent (when most have dropped due to a lack of vehicles to sell) and ahead of inhouse arch rival Hyundai, it’s closing in on Mazda (down nearly 10 per cent) and enjoying unprecedented acclaim as well as growth in first-time customers thanks to a progressive electric car plan. That seven-year warranty helps too.

Kia Motors Australia chief operating officer, Damien Meredith, has said that while Kia prices have generally moved up along with Toyota and others like Mazda and Volkswagen, the brand will still offer affordability in passenger cars, to mop up scores of buyers left behind by big price hikes (especially with SUVs).

However, while some Kia prices have only gone up slightly since 2019, others have undergone some pretty hefty rises, even for models that have – until recently – had big discounting attached to their price tags.

Over the past few years, the base grades of the three cheapest Kia passenger cars have all become substantially more expensive in line with most rivals, with the $14,190 (all before on-road costs unless otherwise stated) Picanto S jumping $1800 to $15,990 in 2022, the $16,990 Rio S rising $2700 to $19,690 and $23,790 Cerato S auto escalating $2200 to $25,990 over the same time frame.

But this new reality is even grimmer for long-time Kia buyers. Don’t forget that, though rarely seen nowadays, most of the earlier prices were subject to ‘driveaway’ deals, meaning that all the associated dealer and on-road charges including all taxes and duties are accounted for, effectively making them another $2500 or so cheaper than listed – $14,990 driveaway for Picanto, $17,990 driveaway for Rio and ­– most enduringly – $19,990 driveaway for Cerato.

So, do the cheapest Kia passenger cars actually still cost less than their Toyota and Mazda equivalents? 

Kia Picanto vs… NOTHING!

Firstly, kudos to Kia because no other carmaker in Australia can match the Picanto S’ low, low price of $15,990.

Yes, we’re also talking about one of this country’s smallest vehicles, but it isn’t that tiny (five can still fit if really needed to), nor cramped with fewer people, nor under-equipped nor in any way too compromised for being so diminutive.

Now that the ageing Mitsubishi Mirage has been legislated out of existence in Australia and the (albeit larger but also ancient) MG3 auto is $18,990 (driveaway), Kia has this space to itself – and with no plans to abandon it either. Bravo, Kia.

But what about the rest of Kia’s small-car range, and how do Toyota and Mazda measure up pricewise?

Kia Rio vs Toyota Yaris and Mazda2

In contrast, the Toyota and Mazda equivalents that correspond (none offer an A-segment city car answer to Picanto) are as follows:

Compared to Rio ($16,990 in 2019/$19,690 today), Kia has something to crow about. The Toyota Yaris Ascent went from being substantially cheaper at $15,390 in 2019 to, ahem, $23,740.

Yes, that’s partly because it’s now auto only, but that’s still an $8350 hike. Mazda’s just as hungry for money, with the Mazda2 Neo in 2019 priced at $15,320 rocketing into the $21,330 Pure (a $6000 slug – for essentially the same car). This means the Kia is nearly 17 and 10 per cent cheaper than the Yaris and Mazda2 respectively.   

Kia Cerato vs Toyota Corolla and Mazda3

Kia’s lead is less clear cut compared to the Corolla if not other quality small cars.

Against Cerato auto ($23,790 in 2019/$25,990 today), the Corolla Ascent Sport auto edged up 4%, from $24,370 in 2019 to $25,395 today, so the Toyota is now actually cheaper than the Kia. Remember, those $19,990-driveaway Ceratos were only a handful of years ago. In 2022, a base Cerato S is promoted at $27,490-driveaway.

But the Mazda3 Pure auto rose 6%, from $25,990 to $27,540, over the past three years, so the latter’s premium positioning remains as healthy as ever.

Yes, a Corolla is currently cheaper than a Cerato. Only by about $600, but that’s still an unexpected turn, especially as the Toyota is built on a newer platform, offers some unique safety technologies and is built in Japan.

That all said, a Corolla facelift is coming very soon, with more power, extra features and a host of updates, and we reckon Toyota won’t squander this opportunity for its price to leapfrog the Cerato’s and get closer to the Mazda3’s.

So, what can we conclude here?

Kia now offers the cheapest new car in Picanto and there are no near-priced alternatives that are as new, or as good ­– and especially not from Toyota. Rio remains handily cheaper than a Yaris or Mazda2, but it’s the Cerato that buyers should not just blithely order thinking there are no cheaper competition out there, because ­– as the Corolla currently proves – it isn’t the least expensive.

At least one Kia pricing myth has been busted!