Holden targeting Mazda3, Golf with new Astra

Holden is hyping up the European roots of its new Astra hatch to target premium small cars such as the Volkswagen Golf and Mazda3.

Backing away from a bare knuckle fight in the discounted, sub-$20,000 market usually held by Hyundai's i30, Holden has instead decided to push a premium angle for its German-designed, Polish-built new car.

Ben Lasry, Holden's general manager of product marketing, sees "the Mazda3 and the Volkswagen Golf as the closest competitors to Astra".

"Both appeal to that aspirational, premium end of the segment, that's where we are going to position the next-generation Astra," he says.

 "We know it's a vehicle that will challenge people who have left, or never considered our brand, to now consider a Holden."

"We're totally confident that the Astra will propel Holden right to the top of the small car segment."

Holden hopes to return to the highs brought by the TS model Astra of 1998, which brought record sales for the nameplate.

But the brand isn't expected to go after $19,990 drive-away offers for automatic models pushed by the likes of Hyundai and Kia. Following in the footsteps of Ford's Focus, the brand has elected to fit turbocharged engines across the range that push its entry price to $21,990 plus on-road costs in basic manual form.

Peter Keley, executive director of sales for the brand, says the Australian car market is shifting.

"$19,990 used to be the sweet spot, that's dissipated some time ago," he says.

"Occasionally our competitors are there... plus $20,000 is where the market is."

The Holden Astra has received a five-star ANCAP safety rating thanks to its standard autonomous emergency braking and lane support systems.

Read our Australian review of the new Astra on Friday.

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