Top 5 Small SUVs in Australia 2025 – Perfect for Urban Living

Australia’s urban sprawl, dense inner-city parking, and growing preference for compact yet high-riding vehicles have made small SUVs the go-to choice for Aussie drivers in 2025. With an increasing focus on fuel efficiency, tech-laden cabins, and hybrid/electric variants, today’s small SUVs are more than just smaller versions of their larger siblings — they’re urban mobility machines designed for the modern driver.

If you're in the market for a practical, efficient, and stylish vehicle for daily commuting, school runs, or weekend getaways — a compact SUV might just be the perfect fit.

Let’s explore the top 5 small SUVs in Australia for 2025, each offering a unique combination of design, value, safety, and tech to suit various Aussie lifestyles.

What Defines a "Small SUV" in 2025?

Small SUVs, also known as compact or subcompact crossovers, typically offer:

• Shorter length and wheelbase than midsize SUVs
• Higher driving position compared to hatchbacks or sedans
• Versatile interiors with fold-flat rear seats
• A choice of petrol, hybrid, or electric powertrains
• Easy manoeuvrability for city driving
• Fuel economy better than larger 4WDs or full-size SUVs

Let’s now break down the best models in this growing segment.

1. Mazda CX-3 2025 – Urban Simplicity Meets Elegance

Overview:

Mazda’s smallest SUV continues to be a hot favourite among Aussie drivers, especially those who want premium styling and refinement in a compact footprint.

Why It’s in the Top 5:

• Excellent build quality and stylish design
• Updated 2025 infotainment system with larger screen
• Punchy yet frugal Skyactiv-G petrol engine
• Agile handling – perfect for tight urban streets

Key Specs:

• Engine: 2.0L petrol (110kW)
• Fuel Economy: 6.2L/100km
• Transmission: 6-speed automatic
• Drive Type: FWD / AWD option
• Boot Space: 264L (rear seats up)

Interior Features:

• Apple CarPlay/Android Auto (wireless)
• New 8.8-inch infotainment screen
• Premium leather trim (GT variant)
• Minimalist dash layout, user-friendly

Safety:

• ANCAP 5-star safety rating
• Blind-spot monitoring, AEB, adaptive cruise
• Traffic sign recognition standard

Verdict:

If you prioritise driving feel, aesthetic design, and Mazda's hallmark reliability, the 2025 CX-3 remains a top urban SUV pick.

2. Hyundai Kona 2025 – Future-Forward Tech in a Compact Package

Overview:

Completely redesigned in late 2024, the 2025 Kona comes in petrol, hybrid, and full electric versions. It brings bold styling and advanced tech to the small SUV segment.

Why It’s in the Top 5:

• Wide range of variants to suit all budgets
• Fully digital interior and voice command integration
• Spacious interior for its class
• Great fuel efficiency and EV option

Key Specs:

• Engine Options: 2.0L petrol, 1.6L turbo-hybrid, 100% electric
• Fuel Economy: 5.0–7.0L/100km (depending on variant)
• Range (EV): Up to 505km (WLTP)
• Boot Space: 407L

Interior Features:

• Dual 12.3-inch panoramic screens
• Advanced voice assistant (“Hyundai Smart AI”)
• Wireless smartphone integration
• Ambient lighting, shift-by-wire gear selector

Safety:

• Highway Driving Assist 2 (semi-autonomous)
• Lane centring, adaptive cruise with curve control
• 5-star ANCAP rating

Verdict:

The Kona offers cutting-edge tech, a choice of drivetrains, and youthful design. It’s a futuristic compact SUV built for the tech-savvy Aussie.

3. Toyota Yaris Cross 2025 – Practical Hybrid Choice for City Goers

Overview:

Toyota’s small SUV continues to win hearts with its hybrid-only powertrain, bulletproof reliability, and smart packaging.

Why It’s in the Top 5:

• Excellent fuel economy thanks to hybrid system
• Toyota Safety Sense across the range
• Compact size with a surprisingly spacious cabin
• Value pricing with low running costs

Key Specs:

• Engine: 1.5L petrol hybrid (85kW)
• Fuel Economy: 3.8L/100km
• Transmission: CVT
• Drive Type: FWD / AWD (e-Four)
• Boot Space: 390L

Interior Features:

• 9-inch touchscreen with wireless Apple CarPlay
• High seating position with good outward visibility
• Durable and ergonomic cabin layout
• Digital climate control (ZR trim)

Safety:

• Pre-collision with pedestrian/cyclist detection
• Adaptive cruise control
• Intersection turn assist
• 5-star ANCAP (2022 carryover)

Verdict:

Perfect for eco-conscious buyers, the Yaris Cross is one of the most frugal and reliable urban SUVs available in 2025.

4. Kia Stonic 2025 – Value, Simplicity, and Style

Overview:

Kia’s most affordable SUV keeps winning due to its no-nonsense practicality and solid feature list, all while offering great value for money.

Why It’s in the Top 5:

• Affordable entry-level SUV with generous standard features
• Fun-to-drive dynamics
• Great warranty (7 years/unlimited km)
• Compact footprint ideal for city use

Key Specs:

• Engine: 1.4L petrol (74kW) or 1.0L turbo (88kW)
• Fuel Economy: 5.4–6.0L/100km
• Drive Type: FWD
• Boot Space: 352L

Interior Features:

• 8-inch infotainment with Apple CarPlay/Android Auto
• Simple and ergonomic layout
• Available sunroof and alloy wheels on top trim

Safety:

• AEB, lane keep assist, driver attention alert
• Rear camera and parking sensors
• ANCAP 5-star rating (based on Rio platform)

Verdict:

The Stonic is for those who want something fuss-free, stylish, and budget-friendly without sacrificing on essentials.

5. Volkswagen T-Cross 2025 – European Flair with Everyday Functionality

Overview:

The T-Cross brings Volkswagen's signature feel, refinement, and solid engineering into the compact SUV market, with a smart urban-friendly design.

Why It’s in the Top 5:

• European design and finish
• Turbocharged petrol engine with peppy performance
• Spacious and flexible interior
• Top-tier infotainment tech and build quality

Key Specs:

• Engine: 1.0L turbo-petrol (85kW)
• Fuel Economy: 5.4L/100km
• Transmission: 7-speed DSG
• Boot Space: 385L

Interior Features:

• 10.25-inch digital cockpit (top trim)
• Wireless phone charging
• Voice-controlled infotainment system
• Sliding rear bench for boot space adjustment

Safety:

• AEB with pedestrian detection
• Adaptive cruise, blind-spot monitoring
• Rear cross-traffic alert
• 5-star Euro NCAP rating

Verdict:

Stylish and smart, the T-Cross stands out for those who want a premium feel in a small, agile urban SUV.

Honorable Mentions

Honda HR-V e:HEV

• Premium hybrid-only option with strong interior space
• Excellent hybrid performance and interior finish
• Slightly higher price point places it just outside the top 5

Suzuki Vitara

• Old-school charm with modern safety updates
• Available AWD, lightweight and nimble
• Affordable servicing and rugged simplicity

Key Comparison Table – At a Glance

Buying Tips for Small SUV Shoppers in 2025

1. Set Your Priorities

• Want tech? Look at Hyundai Kona.
• Prioritise value? Kia Stonic and CX-3 are top picks.
• Eco-conscious? Toyota Yaris Cross and Kona Hybrid are great.

2. Fuel Type Matters

• Hybrid: Best for low running costs.
• Petrol: Still great if you don’t clock huge weekly kms.
• Electric: Higher upfront, but cheaper long-term and greener.

3. Don’t Forget Boot Space

Boot capacity varies significantly. Check if the boot suits your weekly grocery runs, pram, or sports gear.

4. Test Drive Before You Decide

Some small SUVs feel very different in motion. Always drive both on city streets and open roads.

Conclusion: Which One Is Right for You?

In 2025, small SUVs in Australia come in all shapes, drivetrains, and personalities. Whether you lean toward the futuristic Kona, the hybrid-focused Yaris Cross, or the value-packed Stonic, there’s a compact SUV ready to match your urban lifestyle.

At the end of the day, consider what matters most: fuel economy, tech, space, or brand loyalty — and take a few test drives before committing. With so many strong options under $35K–$40K, there’s never been a better time to go small without compromising.