Australian electric car market to get influx of new models as cheaper EVs hit the road | Electric vehicles
Australians can expect to see more electric vehicles, sports cars and hatchbacks breaking price records at both ends of the spectrum; The changes encourage even the most reluctant brands to join the trend.
However, the electric vehicle market may also face significant regulations with the review of road user fees and tax exemptions on the national agenda in 2026.
Experts say both moves could have a significant impact on the local automotive industry and Australia’s target to reduce emissions by 62% to 70% by 2035.
More than 153 electric and plug-in electric cars are on sale in Australia by 2025, according to the Electric Vehicle Council, but many more are lined up to arrive this year.
These include a variety of models, such as BYD’s record-breaking $23,990 electric hatchback and Polestar’s high-end luxury sports car, which promises to hit 60 mph in less than four seconds.
Traditional car brands are also expected to add to Australia’s electric options after Mazda announced plans to launch its 6e sedan and Toyota dropped the price of its bZ4X SUV update and confirmed the launch of its electric HiLux ute.
Swinburne University future urban mobility professor Hussein Dia said after years of challenges and limited supply, more competitive prices and choice would be welcomed by consumers.
“Market forces are going in the right direction,” he said. “It’s good to have lower priced models on the road.”
Dia said some of the launches were inspired by the new vehicle efficiency standard introduced in January and efforts to prevent automakers from being penalized for exceeding emissions targets.
According to the Federal Chamber of Automotive Industries and the Electric Vehicle Council, sales of new electric, plug-in hybrid and hybrid vehicles increased throughout the year, while sales of gasoline and diesel cars fell.
But regulatory changes could change this course after treasurer Jim Chalmers announced a review of tax exemptions for electric cars from 2022.
Chalmers said almost 100,000 electric cars had been purchased through the exemption, exceeding expectations.
A road user charge that could apply to electric vehicle drivers who do not currently pay fuel tax is also being considered by the federal government.
Dia said introducing fees and eliminating rebates before electric cars account for 30% of new car sales could slow adoption and make it harder to meet environmental targets.
“I hope this will not just be an electric vehicle tax and will be an opportunity to reconsider the entire taxation system,” he said.
“We want it to be applied to all vehicles”
Public consultation regarding the electric car discount will be open until February 5.
Ten electric cars will come to Australia in 2026
BYD Atto 1
($23,990): This hatchback could be the cheapest electric car on the market when it reaches Australia; The base model promises 220 km range and fast charging.
pole star 5
($171,000): This Porsche rival has many luxury features. The basic model comes with two engines and reaches 100 km/h in 3.9 seconds.
Hyundai Elexio
Set to be launched early this year, this mid-size SUV has a futuristic design and a battery that promises to cover more than 500 km per charge.
Honda Super-ONE
It may look like a toy car, but this compact vehicle is real, designed for urban driving and will be launched in the second half of 2026.
Mazda 6e
The popular Japanese car brand will add an electric sedan to its fleet in mid-2026. The 6e will have a rear engine and a range of more than 500 kilometers.
Toyota HiLuxEV
Australia’s most popular car brand will launch an electric version of its HiLux ute in the first half of 2026. Its price is expected to fall between $90,000 and $100,000.
Kia PV5
An electric van will join Kia’s SUV and sedan lineup in late 2026, promising a range of up to 412km from the base model.
Suzuki e-Vitara
Suzuki’s first mass-produced electric vehicle will arrive in SUV form early this year. Its price has not been announced yet, but the base model may have a range of 400 km.
XPeng
This Chinese brand’s latest vehicle is a seven-seater people mover expected to hit the roads in the second half of the year.
Bounce motor B05
The B05 is a five-door electric hatchback that will be available in the middle of the year. It will have a rear-wheel drive engine and a base range of 361 km.
