If you’re interested in electrified vehicles rather than fully electric, here's our pick of the best new hybrid and PHEV cars, SUVs, and utes on sale in Australia.
Motoring
Australia’s best family cars of 2025
Australian families have the choice of many different types of car, from hatchbacks and wagons to small, medium and large seven-seat SUVs, which are perfect for busy lifestyles, road trips or towing a trailer. Across hybrid, EV and conventional engines, here’s our best family cars to test drive in 2025.
Choosing a car for the family can be a daunting task and may involve compromises. If you get something bigger and with more space, for example, it won’t be as easy to manoeuvre around town.
While there’s a vast array of new cars that deliver on safety, spaciousness, driving performance and technology, some do it better than others.
We’ve lined up our top picks on the market right now across a broad range of vehicle segments, apart from dual-cab utes, which are covered in a separate guide.
More: Research and compare new and used family cars on sale today in Australia
Best cars for Australian families
Only available as a hybrid, the 2025 Toyota Corolla hatch is a practical option for small families.
Best small family hatch: Toyota Corolla Hybrid
The 2025 Toyota Corolla is an excellent car for everyday duties and is now only available as a hybrid. The petrol-electric powertrain makes for frugal around-town running, enabling excellent fuel economy of 4.0L/100km.
The addition of an electric motor makes for easy performance off the line, too, and the Corolla is surefooted through corners. The cabin is roomy and the hatchback body style allows for practical packaging, although the back seats aren’t as big as some rivals.
A sensible level of equipment – including wireless Apple CarPlay and Android Auto – and low servicing costs partially offset the premium price tag of the Corolla Hybrid hatch, which starts from $36,443 driveaway in Victoria.
More: Research and compare new and used Toyota Corolla models
Also consider: MG4 EV
If you’re interested in buying an EV, the 2025 MG4 mounts a solid case, starting with a price tag that undercuts many petrol-powered hatches. Most recently, the entry-level MG4 had dropped to just $32,990 driveaway.
Designed from the outset as an EV, the MG4 maximises interior space and is refreshingly fun to drive. Some of the in-cabin tech could be improved – the touchscreen can be slow to respond – but the negatives are offset by a functional cabin and sound basics. Overall, it’s an impressive package.
More: Research and compare new and used MG4 models
More: Australia's cheapest electric cars and SUVs
The 2025 Hyundai Kona is a class act amid a sea of small SUVs, ticking the boxes in all the right places.
Best small family SUV: Hyundai Kona
Some compact SUVs can be very small and quite basic machines, but the 2025 Hyundai Kona is neither. With driveaway pricing from $36,949.80 in Victoria, the Kona offers a lot of five-seat SUV for the money.
The cabin is spacious for this class of car and comes well equipped across the range, including remote connectivity and over-the-air software updates. The Kona also drives well, with crisp steering and a supple ride that’s not often seen at this end of the market.
There’s a variety of powertrains available, spanning petrol, turbo-petrol, hybrid and EV via the Kona Electric. The hybrid is worth a close look, bringing more enthusiastic performance than the entry-level petrol engine and outstanding economy at 3.9L/100km.
More: Research and compare new and used Hyundai Kona models
Also consider: Honda HR-V Hybrid
Beyond the Hyundai Kona, there are several family-friendly small SUVs worth shortlisting such as the Kia Seltos and Toyota Corolla Cross, but our runner-up award goes to the 2025 Honda HR-V.
Priced from $34,900 driveaway, the Honda HR-V recently scored a minor upgrade and in overall terms it represents solid buying. The e:HEV hybrid version (from $39,900 driveaway) is most impressive, packing in plenty of performance and returning economy as low as 4.3L/100km. It also gets a slickly presented cabin with faux leather and heated front seats.
The clever folding rear seats in the HR-V are a bonus for carrying bulky things, from bikes to the latest haul from the hardware store. It’s a shame there are only four seats, although for many it won’t be a deterrent.
More: Research and compare new and used Honda HR-V models
More: Australia’s best small and compact SUVs
Best medium family SUV: Nissan X-Trail
Medium SUVs are hugely popular in Australia and the segment is brimming with contenders. For families, the 2025 Nissan X-Trail gets our nod this time with an overall package that’s roomy, practical, polished on the road and, in the case of the hybrid version, deeply impressive.
Priced from $41,962 driveaway, the latest-generation X-Trail is among the most spacious in class and includes a variety of seven-seat models in the range. The additional third row of seats probably won’t suit adults, but it’s fine for little ones.
Whether running around town or taking off for the holidays, the X-Trail is proficient on the road, with light and accurate steering and compliant suspension that soaks up bumps nicely. The ageing 2.5-litre petrol engine is arguably its weakest link, but the clever continuously variable transmission (CVT) helps maximise what’s on offer.
Step up to an e-Power model (from $55,239 driveaway) and you get a hybrid system with a difference. Two electric motors drive all four wheels and provide frugal motoring while improving the driving experience.
More: Research and compare new and used Nissan X-Trail models
Also consider: Kia Sportage
If you want to look at alternatives to the Nissan X-Trail, there’s no shortage of options including the Toyota RAV4 (now hybrid only), the European-sourced Skoda Karoq, the Hyundai Tucson and the latest Honda CR-V. That said, we believe the 2025 Kia Sportage remains near the top of the class, starting from $37,406.98 driveaway.
The Sportage is a beaut all-rounder and comes with a choice of powertrains: a four-cylinder petrol engine driving the front wheels (it’s a tad undernourished); a turbo-petrol engine driving all four wheels (offering stronger performance); a diesel 4WD that’s terrific for road trips (strong and economical); and a turbocharged petrol-electric hybrid that’s also worth a close look.
More: Research and compare new and used Kia Sportage models
More: Australia’s best medium SUVs
Best seven-seat family car: Hyundai Santa Fe Hybrid
There might be a lot of generic-looking SUVs lining up on the school run, but the new-generation 2025 Hyundai Santa Fe isn’t one of them. The boxy newcomer looks bold and muscular, helping it stand out among more svelte peers.
The Santa Fe’s goodness also runs a lot deeper than its distinctive looks. That’s especially true in hybrid form, which helps the SUV achieve fuel consumption as low as 5.6L/100km – an excellent figure for a large seven-seater family car (there’s also a more luxurious six-seat layout available).
Even in entry-level guise (known simply as Santa Fe, priced from $60,815.80 driveaway for the hybrid) there’s loads of gear, including smart key entry with remote start functionality, a 360-degree camera, powered tailgate, power-adjustable driver’s seat and dual-zone ventilation with a fan controller for the third row. The full-size spare wheel is also a bonus for those looking to head out of town.
By the time you get to the high-series Calligraphy model (from $81,130.60 driveaway), the materials are a lot swankier and there’s a head-up display, Nappa leather and a sunroof. Across the range, the Santa Fe’s cabin emulates the bold exterior design and comes with loads of thoughtful storage solutions, including dual cupholders built into the back doors. Topping it off, the Santa Fe is also slick to drive, with decent performance and an effortless feel around town.
More: Research and compare new and used Hyundai Santa Fe models
Also consider: Toyota Kluger
There are other great options in the large seven-seat family SUV segment, including the 2025 Toyota Kluger – now with a hybrid powertrain only and starting from $66,463 driveaway.
The Kluger offers great middle-row sprawling space and an easily accessible third row. What it lacks in cabin elegance, the Kluger makes up for with sound driving manners and a decent hybrid system that uses a claimed 5.6L/100km.
More: Research and compare new and used Toyota Kluger models
More: Australia’s best large SUVs and 7-seaters
Best electric family car: Tesla Model Y
Tesla sales may have dropped in recent times, but the Tesla Model Y remains a top-selling EV in Australia – and with good reason.
More affordable than ever, the five-seat medium family SUV sells from $55,900 plus on-road costs ($60,872 driveaway in Victoria) and the ability to package it into a novated lease brings significant tax advantages. Keeping it moving costs less than half what it does to achieve the same with fuel. Plus, servicing requirements are minimal.
The cabin is surprisingly spacious, with excellent headroom in all five seating positions, while luggage room out back and also under the bonnet in the ‘frunk’ (front trunk) is generous. A broad sunroof and seat heating all around is just the start of a long equipment list.
Tesla also leads the market on connectivity and in-cabin tech, right down to computer games that can keep the kids entertained. Access to the brand’s charging network is a bonus too – especially on long road trips.
More: Research and compare new and used Tesla Model Y models
Also consider: BYD Atto 3
If you’re after a practical EV in a smaller and more affordable package, the 2025 BYD Atto 3 – priced from $44,134.65 driveaway at the time of writing – is a tempting option that recently scored some minor updates, including better tyres and a larger infotainment screen.
Decent driving manners are matched with an occasionally quirky but spacious interior.
More: Research and compare new and used BYD Atto 3 models
More: Tesla Model Y vs BYD Atto 3 comparison
Best family car for towing: Ford Everest
Those who need to tow a boat, caravan or camper trailer often gravitate towards a ute, which brings compromises as part of the load-lugging body. On the other hand, a large family SUV such as the 2025 Ford Everest makes for a more comfortable and practical alternative that can still tow up to 3.5 tonnes.
While there are four-wheel drive variants of the Everest, you can save money and get a rear-drive model that tows the same amount. Pricing starts from $60,647 driveaway. The four-cylinder twin-turbo diesel engine is a great option, but one that is ultimately outclassed by the smoother, gruntier V6 also available in the range, hauling the load just that little bit easier.
Australian engineering development has paid off for the Everest too, which not only does a decent job around town but also deals beautifully with rough roads.
Also consider: Toyota LandCruiser Prado
The just-arrived new-generation (250 Series) 2025 Toyota LandCruiser Prado also steps up in all areas, including towing.
Priced from $78,522 driveaway, the new Prado rides on the same architecture as the Toyota LandCruiser 300 Series and has the same maximum towing capacity, up to 3500kg. But with that load on board its payload (how much you can put in the car) drops to as little as 230kg.
Limit the load, though, and there’s plenty to like with the Prado across the board. It’s now smoother and quieter on the road while being easier to manoeuvre, thanks to new electric power steering. And off-road it’s superb, easily clambering over some seriously tough terrain to get adventurous families to some far-flung places.
More: Research and compare new and used Toyota Prado models
More: The best cars for towing a caravan
The 2025 Kia Carnival remains a firm favourite when it comes to road-based transport for large families.
Best people mover: Kia Carnival
If you have a big family, you need a big vehicle. Although the temptation may be to go for a bigger SUV, nothing matches a dedicated people mover for transporting people and their gear on paved roads.
The 2025 Kia Carnival is the best of a slender field. Priced from $54,540 driveaway and backed by a seven-year warranty, Kia’s big wagon provides excellent space across three rows of seats (with capacity to take eight people) and has an uncannily deep boot for swallowing big suitcases and whatever paraphernalia the tribe throws in. Sliding rear side doors are also a practical element when you have eager occupants clambering in and out of the car.
The V6 petrol engine can be thirsty and needs to be pushed along, especially if you’ve got a full house. For that reason, the turbo-diesel (about $2200 extra) makes more sense because it can more effortlessly shuffle things along. There’s also now a hybrid option, although it’s only available in the top-spec GT-Line model grade, from $83,219.06 driveaway.
More: Research and compare new and used Kia Carnival models
Also consider: Hyundai Staria
If you want even more space, the 2025 Hyundai Staria trades some packaging cleverness for sheer millimetres, much of it in height.
Priced from $53,890 driveaway, the Staria is well packaged and shares components with the Carnival but has some key differences. For example, its diesel engine is paired with an all-wheel drive system, which makes it handy for family alpine adventures during winter.
More: Research and compare new and used Hyundai Staria models
The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product(s) issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.
