2026 CarExpert Choice winner: Best City Car

The Volkswagen Polo has been named Australia’s best city car in the 2026 CarExpert Choice Awards.

It beat out the Mazda 2 light hatch and sedan range, as well as the Kia Picanto hatch which was last year's victor.

None of these city cars are spring chickens, but all remain worthy of recommendation even in their twilight years.

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We gave the Polo the edge for its punchy yet fuel-efficient turbocharged 1.0-litre three-cylinder petrol engine, its enjoyable handling, its sophisticated active safety and driver-assist technology, as well as its classy cabin with modern technology, user-friendly controls, and plenty of sound deadening.

The Polo has a more premium feel than its rivals, though that does come at a cost: even the entry-level variant doesn't slide in under the $30,000 barrier. However, it undercuts the related T-Cross light SUV while offering much of its cabin space and practicality.

Volkswagen's entry-level hatchback is a great choice if you want to downsize to something smaller and more efficient but aren't yet ready for an electric vehicle (EV) – such as the BYD Atto 1 which we named Best Affordable EV – and don't want to give up the more substantial feel you get with many larger, more expensive vehicles.

By the way, if you're after something with city-car dimensions but more punch, the Polo has an ace up its sleeve: the sporty GTI flagship, which will continue into model year 2027.

2026 CarExpert Choice: Best City Car

• Winner – Volkswagen Polo
• Finalist – Kia Picanto
• Finalist – Mazda 2

To see all the CarExpert Choice winners, click here.

MORE: Explore the Volkswagen Polo showroom