Dear Drive… Are there affordable electric cars in Australia right now?

Demand for electric cars is growing in Australia, but it’s no secret EVs are expensive. We explore some more affordable options on the market for those wanting to make the transition on a budget.

Dear Drive.. Where we answer reader, viewer, and listener questions. Something on your mind? Call us on the radio show or email us at contactus@drive.com.au.

We’ve been asked:

Are there affordable electric cars in Australia right now?

It’s a fact – electric vehicles are expensive. Thanks to the high manufacturing costs involved in producing lithium-ion battery packs and the initial lack of demand for EVs, their price tags have always been higher than their petrol-and diesel-powered counterparts.

But, demand in Australia is growing, and growing rapidly, with the most recent new-car sales data reporting a rise of 22 per cent in the past month. In 2022 alone, electric cars enjoyed an increase of 889 per cent, or a 303 per cent increase with Tesla sales excluded, as the company didn’t reveal its monthly sales until March 2022.

While there’s still a lot of work to be done, Australian EV rebates and incentives might make the purchase of en electric car more attractive. For example, the Federal Government has implemented $2500 lower purchase prices, thanks to the removal of five per cent import tariffs for EVs priced under the Luxury Car Tax limit.

Additionally, the removal of Fringe Benefits Tax offers a saving of $4700 annually for those with a salary sacrifice agreement for an electric vehicle up $50,000.

Unfortunately, as it stands, the market isn’t bursting with options at that price point. However, if you’re shopping down this aisle on a budget, then there are some EVs available in Australia that sit at the more “affordable” end of the spectrum – starting from under or close to $50,000.

Here’s Drive’s list of the most affordable electric vehicles currently on the market in Australia (before government incentives), along with a handful expected to land in showrooms this year.

MG ZS EV

Launched in 2020, the MG ZS EV has long been an appealing offering in the market, thanks to its sharp pricing and decent driving range of 320km. The long range ZS EV is due in the middle of this year, which increases driving range to 440km. The MG ZS EV is priced from $44,990 drive-away.

BYD Atto 3

The BYD Atto 3 is a sleek and futurist medium SUV produced by well-established Chinese brand, BYD. The Atto 3 starts at $48,011 (standard range), plus on road costs. The standard range provides a claimed WLTP driving range of 345km.

Nissan Leaf

The Nissan Leaf was one of the first mass-market electric cars, launching in Australia in 2010. The latest model received mild updates along with a price increase of $1000 across the two-model range. The entry-level Leaf is good for a 270km range and is priced from $50,990 before on-road costs.

Hyundai Kona Electric

The Hyundai Kona is a small SUV that starts at $54,500 plus on road costs (standard range Elite), and offers a 305km driving range. The 2023 Hyundai Kona is due in Australian showrooms from the middle of this year. The new model will be larger than the model it replaces, and will offer an array of new technology. It’s also likely to cost more.

Mini Electric

The Mini Electric is a compact city car. Its design is modern and playful, exhibiting nods to the marque’s racing heritage. The SE Classic starts at $55,650 plus on road costs and has a claimed driving range of 233km.

More affordable electric vehicles joining the Australian market in 2023

GWM Ora

The 2023 GWM Ora is a compact electric newcomer that’s priced from $44,490 drive-away. This quirky hatchback offers up to 420km of range (WLTP, depending on variant). Once on sale, it will become the most affordable electric vehicle on offer in Australia.

MG 4

The MG 4 is due in the first half of this year. While pricing of the electric hatchback is yet to be announced for Australia, based on UK pricing the entry-level model with a claimed driving range of 350km, could sit at around $40,000 drive-away, estimates suggest.

BYD Dolphin

The BYD Dophin is a funky looking city hatchback. Prices are yet to be confirmed, though it’s expected to be positioned either side of the BYD Atto 3 small SUV – from approximately $45,000 to $50,000 drive-away in Australia.

BYD Seal

The BYD Seal is a mid-size sedan, due to hit showrooms in the second half of this year. Like the Dolphin, prices are yet to be confirmed, though it’s expected to be positioned either side of the BYD Atto 3 small SUV – from approximately $45,000 to $50,000 drive-away in Australia.

Fiat 500e

The Fiat 500e is due in the second half of this year, priced from $52,500 plus on-road costs – more than double the price of the previous most expensive petrol variant. Fiat in Europe claims a 311km electric driving range.

Have a question about your next set of wheels or just need some car advice? No query is too big, small or obscure! Call in to the radio show (Trent on 2GB Sydney 1:30pm Monday and 9:00pm Wednesday, 5AA South Australia 1:30pm Tuesday, and James on 3AW Melbourne 9:00pm each Thursday), or contact us by email here: contactus@drive.com.au.

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