City cars are the ultimate urban companions – they're small enough to squeeze into tight parking spots, efficient enough to keep running costs down, and nimble enough to dart through traffic with ease. These compact vehicles prove that bigger isn't always better, especially when you're dealing with Australian city streets and suburban shopping centres.
The best city cars balance compact dimensions with surprising practicality. They need to be easy to drive and park, reliable for daily commuting, and affordable to buy and run. Despite their small size, today's city cars pack impressive safety tech and modern features.
Here are Australia's top city cars that make urban driving a breeze.
Australia's Best City Car

Best Choice
Kia Picanto
The Kia Picanto delivers exceptional city car value with impressive interior space, modern safety tech and Kia's excellent warranty coverage, making it the smart choice for urban Australian drivers.

Finalist
Mazda 2
The Mazda 2 brings a premium feel to the city car segment, along with excellent build quality, engaging driving dynamics and a refined interior that punches well above its compact dimensions and price point.

Finalist
MG3
The MG 3 offers impressive value with modern styling, generous equipment levels, and an affordable price that makes it accessible to first-time buyers and city commuters on tight budgets.