New entry about to make electric cars a lot cheaper
Electric vehicles are expected to break another price barrier in Australia after a brand announced plans to launch the first battery-powered car for under $25,000.
Chinese automaker BYD has announced that the price of its cheapest model to date will be $23,990 when it launches in late 2025, undercutting the price of its closest rival by $6,000.
Automotive experts said the move could inspire another price fight in the Australian market and help boost electric vehicle sales among mainstream buyers after modest growth in 2025.
BYD, which has surpassed Tesla to become Australia’s best-selling electric vehicle brand, will launch its Atto 1 compact car in stores in late 2025, with deliveries expected in early 2026.
The compact, four-seat car will have a battery range of 220 km, as well as fast charging and a 0-100 km/h time of 11.1 seconds.
BYD Australia chief operating officer Stephen Collins said its launch would mark price parity for electric and petrol vehicles and represent the next step in the company’s Australian plans.
“Each model reflects our commitment to combining technology, design and efficiency specifically designed for local drivers and conditions, reflecting BYD’s commitment to making EV ownership accessible to all Australians,” he said.
The compact EV will take the title of cheapest electric vehicle among BYD’s own Dolphin model, competing with sub-$40,000 electric cars from GWM, MG, Chery and Hyundai.
Australian Electric Vehicle Association national president Chris Jones said the arrival of this vehicle could inspire another price-cutting war for drivers, similar to the battle being waged after the MG4’s launch in late 2023.
“This is really going to shake things up,” he told AAP.
“Car makers may be seriously sharpening their pencils.”
He said many drivers wait for electric vehicle price reductions before investing, and small electric cars such as the Mitsubishi I-MiEV and Nissan Leaf have proven popular in the past.
Dr Jones said busy households with more than one car in the garage might find smaller, cheaper electric models particularly appealing, accelerating EV adoption.
“There are a lot of people who think one of their two cars is a motor vehicle; instead of driving it from Melbourne to Sydney, they’re driving it across town to drop the kids off at school or at sports,” he said.
“If they can replace that vehicle with an electric model at a reasonable price, it will be very popular.”
Representing 9.7 per cent of new cars sold, electric cars recorded their highest ever market share in the September quarter, according to the Australian Automobile Association.
CHEAPEST ELECTRIC VEHICLES IN AUSTRALIA
1. BYD Dolphin Essential: $31,210
2. GWM Ora Lux: $34,990
3. MG4 Excitement 51: $37,990
4. Chery E5 Urban: $38,990
5. Hyundai Inster: $39,990
* Drive away prices
