Kia Picanto upgraded with new safety tech

This popular hatchback has been given a new look, a more modern cabin and more safety technology, but the changes come at a price.

The new Kia Picanto has a significant price rise. Picture: Supplied.

Australian new-car buyers no longer have a safe option if they’re looking for a small car for less than $20,000.

Kia last week confirmed big price increases for its updated Picanto hatchback, taking the drive-away price beyond $20,000 and leaving the MG3 – at $19,990 drive-away – as the country’s cheapest car.

The MG3 meets all Australian Design Rules but does not have a safety rating from Australia’s independent crash testing body ANCAP.

The company’s recently released MG5 sedan was slammed by safety authorities, scoring zero stars out of a possible five.

The new Picanto costs more than $20,000 on the road. Picture: Supplied.

Pre-Covid, buyers looking for a sub-$20,000 small car could choose from close to 20 models, but inflation and, ironically, stricter safety testing procedures have led to those options drying up.

Car makers are fitting expensive crash avoidance technology to their new cars to ensure a five-star rating, and jacking up their prices accordingly.

ANCAP says MG has “misjudged the safety expectations of today’s consumers” but the maker argues it is simply delivering cars that cash-strapped Australians can afford.

The MG5 scored just 37 per cent for adult occupant protection. Mainstream makers regularly score in the 90s. It also scored 13 per cent for “safety assist” technology that is designed to avoid accidents.

The MG5 is cheap but the crash test results were nasty. Picture: Supplied.

ANCAP chief executive Carla Hoorweg says the MG5 is “some generations behind” with its crash performance and safety technology.

“Market competition is healthy and encouraged, however there is also a well-established expectation from Australia private consumers and fleet buyers that new cars entering our market offer the best levels of safety,” she says.

However, there is some disquiet in the industry that ANCAP is setting the bar too high and criticising vehicles that receive less than the perfect five stars.

Some fleets will not buy cars that are rated less than five stars for occupational health and safety reasons, but manufacturers argue they are not unsafe.

Kia’s new model starts at $20,690 drive-away, an $1800 hike over the car it replaces. The more expensive GT-Line model is now $22,490 drive-away, an increase of roughly 10 per cent, or $2100 over the previous model.

The Picanto has new crash avoidance tech that has pushed up the price. Picture: Supplied.

The new Picanto has lane-keep assist, blind-spot monitoring and rear cross-traffic alert as standard on all models. The technology previously wasn’t available on any models in the range.

Aside from the upgraded safety tech the new Picanto also has a small digital driver display, rear USB charging ports, an imitation leather steering wheel and electric folding side mirrors.

The turbocharged model has been dropped from the range due to a lack of demand.

The current Picanto scored a four-star ANCAP rating when it was tested in 2017 but that rating will expire at the end of this year.

The manufacturer intends to have the new car tested when the rating expires.