Australia's Most Fuel-Efficient Car: Green Machine On Roads

which is the most fuel efficient car in australia

Australians are increasingly moving towards smaller, more fuel-efficient cars. However, the most fuel-efficient cars are often more expensive to purchase and maintain, and sometimes less practical for families. Electric cars are more energy-efficient than hybrid models, but hybrid models are also becoming more popular. Factors such as vehicle size and type, fuel type, driving style, and vehicle load can all impact fuel efficiency. Some of the most fuel-efficient cars in Australia include the Toyota Yaris, Toyota Corolla, Hyundai Ioniq 6, Toyota Camry Hybrid, and the Audi Q5.

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Electric cars vs. hybrids

Electric vehicles (EVs) and hybrid cars are the future of driving. While hybrid cars are common in Australia, electric cars are gaining popularity. In September 2022, 7,247 electric cars were sold in Australia, accounting for 8% of new car sales that month.

Cost

One of the most important considerations when looking at new cars is the cost of fuelling your car. Electric cars are far cheaper to power than hybrid cars. In Australia, the average cost of electricity is $0.25 per kWh, so it would cost around $4.50 to drive 100km in an electric car. In contrast, refuelling an 80-litre tank in a hybrid car would cost $80-$100, and this could be much more expensive depending on the vehicle's fuel consumption and efficiency.

However, it is important to note that the cost of charging an EV will depend on where you charge it and your home electricity plan. While it is generally cheaper to charge an EV at home than at a public charging station, EV fast charging can be expensive, costing over 80c/kWh.

In terms of the upfront cost of vehicles, hybrid cars are generally cheaper than electric-only vehicles, but both are becoming more affordable. For example, the cheapest BEV, the BYD Dolphin, is almost $3,400 cheaper than the most popular HEV, the Toyota Rav 4. Additionally, electric cars priced below $91,387 can take advantage of a fringe benefits tax exemption, which can make them cheaper to lease than some hybrids.

Environmental Impact

Battery electric vehicles (BEVs) are the only vehicles that are powered completely by battery and are therefore the only fully electric vehicles. BEVs do not emit any CO2 while in use, whereas popular plug-in hybrid electric vehicles (PHEVs) emit around 40g of CO2 per km, and hybrid electric vehicles (HEVs) produce more than double this amount.

However, it is important to consider that the environmental impact of a vehicle depends on how it is used. For example, if you use a hybrid car for long journeys, relying on its fuel consumption, you might have a worse environmental impact than if you were to stick to a traditional vehicle. This is because electric motor batteries are heavy, so hybrid cars weigh much more than standard internal combustion engines.

Range

BEVs get drivers further for each charge, with some BEVs offering an electric driving range over nine times greater than PHEVs. However, PHEVs can travel big distances on petrol alone and are therefore marketed as the "best of both worlds". They can be driven on electricity alone for weeks at a time but have the backup of a petrol engine if you want to go on a long trip without needing to charge.

While hybrid cars offer many of the perks of EVs, BEVs are price competitive with hybrids and are the cheapest to run and the cleanest of all electric vehicles. However, PHEVs may be preferable for those who want to go on long trips without having to worry about charging.

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Running costs vs. eco-friendliness

Running costs and eco-friendliness are two key considerations when buying a car. While fuel efficiency is important for both, the most fuel-efficient cars often come with higher purchase prices and maintenance costs. This trade-off between running costs and environmental impact is a critical factor in the car-buying decision.

In Australia, the average lifetime cost of the most fuel-efficient cars is significantly higher than that of the top-selling cars. For example, the BMW i3, one of the greenest cars in Australia, has a five-year cost of $98,220, while the Toyota Corolla, a popular alternative, costs almost half at $49,302. This discrepancy is partly due to the higher purchase price and insurance costs of fuel-efficient vehicles, making them unaffordable for many Australians. Additionally, the scarcity of parts and specialised servicing for these vehicles can further increase maintenance expenses.

However, it is worth noting that the initial higher investment in a fuel-efficient car can be offset by long-term fuel savings. Electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) offer improved fuel economy and can eliminate fuel costs altogether. While EVs have higher upfront costs, their running costs are significantly lower, and government incentives for green-friendly cars may make them more affordable in the future. PHEVs, such as the Kia Carnival, offer a balance between emissions reduction and affordability, providing a cheaper option than full EVs without compromising on fuel efficiency.

When considering running costs, it is essential to factor in all expenses, not just fuel. Hybrids and electric cars generally have higher production costs than petrol-powered vehicles, leading to higher purchase prices and part replacement expenses over the car's lifetime. Additionally, the lower range of electric cars may be a concern for Australians with families or those requiring heavy-duty vehicles for work. However, advancements in technology are gradually addressing these challenges, making electric cars more accessible and cost-effective.

To improve a vehicle's fuel efficiency, regardless of its type, certain driving habits and maintenance practices can be adopted. These include driving steadily, avoiding aggressive acceleration and braking, keeping tyres properly inflated, and using the recommended grade of motor oil. By optimising these factors, drivers can reduce their fuel consumption and associated costs, contributing to both running cost efficiency and eco-friendliness.

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Petrol vs. diesel

When it comes to choosing the most fuel-efficient car, several factors come into play, including the size and type of vehicle, the type of fuel, and driving habits. While electric cars are the most energy-efficient, they may not be suitable for families or those needing heavy-duty vehicles. In Australia, the Toyota Corolla hybrid is a popular choice, known for its efficiency, quietness, and refinement. The Toyota Camry Hybrid is another affordable option with excellent ride quality and safety features.

Now, let's delve into the comparison between petrol and diesel engines to help guide your decision.

The choice between petrol and diesel engines depends on various factors, including your driving habits, vehicle type, and budget. Here's a detailed breakdown:

Fuel Efficiency

Diesel engines are generally more fuel-efficient than petrol engines, especially for highway driving. Diesel fuel packs more energy per gallon, resulting in better fuel economy. For example, a diesel engine can provide the same power as a larger petrol engine while using less fuel. This efficiency is advantageous for high-mileage drivers, as the fuel savings can offset the higher purchase and servicing costs of diesel vehicles.

Performance and Torque

Diesel engines offer more torque, resulting in better acceleration. However, some types of diesel fuel, like black diesel and biodiesel, can negatively impact vehicle performance. Additionally, engines with more cylinders, typically found in petrol engines, offer smoother operation and more power.

Cost

Diesel engines tend to have higher purchase prices due to their stronger build and the inclusion of emission-control systems. Running costs for diesel vehicles may also be higher due to more systems requiring servicing. However, diesel fuel prices fluctuate and can sometimes be lower than petrol, as seen in Europe.

Maintenance

Diesel engines are known for their durability and require minimal maintenance. However, some argue that diesel engines have higher maintenance needs, and the additional maintenance requirements can offset the small fuel mileage difference between petrol and diesel cars.

Environmental Impact

Advancements in technology have made diesel a cleaner option, reducing its impact on the environment. Diesel engines emit less CO2 than petrol engines, contributing to lower carbon emissions.

Noise

Petrol engines are generally quieter than diesel engines, which tend to be noisier due to their higher compression ratios.

In summary, diesel engines offer better fuel efficiency, torque, and durability but may come with higher purchase prices and noise levels. Petrol engines, on the other hand, are typically cheaper, quieter, and have smoother operations due to their lower compression ratios. Your decision should be based on your specific needs, driving habits, and budget.

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Small cars vs. SUVs

The fuel efficiency of a vehicle depends on several factors, including the size and type of vehicle, the type of fuel it uses, and driving conditions. As a general rule, smaller vehicles tend to have lower fuel consumption than larger, less efficient vehicles. For example, in petrol-powered vehicles, a fuel consumption of 6-8 L/100km is good for a small or medium passenger car, while 9-11 L/100km is considered efficient for a large SUV.

In Australia, small cars like the Toyota Yaris, Mazda 2, and Suzuki Swift are popular choices for their fuel efficiency. The Toyota Yaris, for instance, consumes 4.9 L/100 km and has an average range of 816 km. The Toyota Corolla, another well-known small car, is also available as a hybrid model, with a fuel economy as low as 4.0 L/100 km. While small electric cars are not suitable for all Australians, particularly those with families or requiring heavy-duty vehicles for work, they are becoming more common.

SUVs, on the other hand, are generally less fuel-efficient than smaller cars. The standard SUV is built on a truck's undercarriage, making it heavier and less aerodynamic. However, a type of SUV known as a "crossover" is built on a sedan's undercarriage, making it lighter and more fuel-efficient. Crossovers have driven much of the growth in SUV sales in recent years, and some models are approaching the fuel efficiency of small cars. For example, the 2025 Honda CR-V is a small SUV with impressive fuel economy, estimated at 28 mpg in city driving and 34 mpg on the highway for the front-wheel-drive model. The 2025 Nissan Rogue is another fuel-efficient small SUV, with an EPA-estimated 30 mpg in the city and 37 mpg on the highway for the front-wheel-drive model.

When comparing small cars and SUVs, it's important to consider not only fuel efficiency but also factors such as purchase and maintenance costs, passenger and cargo space, and driving performance. While small cars often offer better fuel efficiency, SUVs may provide more space and features, making them more suitable for families or those needing heavy-duty vehicles. Additionally, the higher purchase price of highly fuel-efficient vehicles can be a barrier for many buyers, as these vehicles tend to be more expensive to produce and have higher insurance costs.

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Improving fuel efficiency

Australia's automotive market offers a wide range of fuel-efficient vehicles, and it's an important consideration for many buyers given the country's vast distances and varying fuel prices. When it comes to fuel efficiency, several factors come into play, including engine technology, vehicle weight, and aerodynamic design. Here are some tips to improve fuel efficiency:

Maintain Your Vehicle: Regular maintenance is crucial for optimal fuel efficiency. Ensure you follow the manufacturer's recommended service schedule, including oil changes, air filter replacements, and spark plug checks. Well-maintained engines run more efficiently and waste less fuel.

Keep Your Tyres in Good Condition: Tyres play a significant role in fuel efficiency. Under-inflated tyres create more rolling resistance, causing the engine to work harder and use more fuel. Check your tyre pressure regularly and ensure it matches the recommended PSI for your vehicle. Also, consider using tyres with low rolling resistance, designed to minimize the energy lost as heat during rolling, thus improving fuel efficiency.

Drive Efficiently: Your driving style can significantly impact fuel efficiency. Avoid aggressive acceleration and sudden braking, as these consume more fuel. Instead, adopt a smooth and steady driving style, accelerating gently and maintaining a constant speed. Use cruise control on highways to maintain a set speed and reduce fuel consumption. Additionally, anticipate traffic flow and plan your route to avoid unnecessary stops and starts.

Reduce Drag and Weight: Remove any unnecessary items from your car to reduce weight, as a lighter vehicle requires less fuel to move. Also, minimize drag by removing roof racks and boxes when not in use, as they increase aerodynamic drag, reducing fuel efficiency. Ensure your windows are closed when driving at higher speeds to reduce air resistance.

Use Fuel-Efficient Driving Modes: Many modern cars come with different driving modes that adjust the engine's performance and responsiveness. Select the 'Eco' or 'Economy' mode, which optimizes the car's systems for maximum fuel efficiency. These modes typically adjust throttle response, transmission shift points, and air conditioning settings to reduce fuel consumption.

Consider Alternative Fuels: Depending on your car's compatibility and availability of infrastructure, consider alternative fuels such as liquefied petroleum gas (LPG) or compressed natural gas (CNG). These fuels often offer cost savings and environmental benefits. However, ensure that there are refueling stations conveniently located along your regular routes.

By following these tips and staying mindful of your vehicle's fuel efficiency, you can maximize your car's performance and minimize your fuel costs. Remember that fuel efficiency not only saves you money but also reduces your environmental impact, making it a win-win situation for you and the planet.

Frequently asked questions

The most fuel-efficient car in Australia depends on several factors, including the size and type of vehicle, the type of fuel it uses, and driving conditions. Electric cars are generally more fuel-efficient than hybrid models, but small electric cars are not suitable for many Australians. Toyota, Honda, and Hyundai are among the most fuel-efficient car brands in Australia. The Toyota Yaris, Toyota Corolla, and Hyundai Kona are some of the most fuel-efficient models.

You can improve your vehicle's fuel efficiency by driving steadily, avoiding aggressive acceleration and braking, keeping your tires properly inflated, and using the recommended grade of motor oil.

In addition to the ones mentioned above, the vehicle's fuel consumption can be affected by the condition of the vehicle (such as the age of the engine and the condition of the tires), the load being carried (such as the weight of passengers or cargo), and the type of fuel used.

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