EV price wars drive increased sales
Competition is heating up at the lower end of the electric vehicle market, with three new Chinese models vying for the title of Australia’s most affordable EV.
The growing number of more affordable electric cars arriving on the market is helping grow the category’s overall share of new vehicle sales, with June sales figures showing battery electric vehicles accounted for 8.8% of monthly sales and 7.4% of all new vehicle sales in the first half of 2023.
FCAI Chief Executive Tony Weber said sales of zero and low-emission vehicles continued to grow with 16.6% of June sales being battery electric, hybrid or plug-in hybrid models.
Of these, the Tesla Model Y was comfortably the biggest-selling electric, recording 5,560 sales in June, making it the second-highest-selling vehicle behind the Toyota HiLux (6,142).
“The early adopters of the new powertrain technology continue to push up the sales of electric vehicles across the country,” FCAI Chief Executive Tony Weber said.
“The steady introduction of new battery electric models across all model segments at more competitive price points is critically important as we deal with the challenges of supplying electric vehicles that meet business and personal consumer needs at prices the mainstream buyers can afford.”
While Tesla continues to dominate EV sales with its premium-priced Model Y and Model 3, competition at the lower end of the market is heating up, thanks mainly to Chinese-manufactured models.
The MG4 is among the new EVs with budget-friendly price tags.
Chinese car maker GWM recently announced a price cut for its small hatchback the Ora EV, citing reduced costs of battery technology due to lower raw material prices.
The price cut means that the GWM Ora EV range now starts from just $39,990 plus on-road costs, with driveaway pricing in Queensland a competitive $41,550.
This entry-level GWM Ora features a 126kW/250Nm front-mounted electric motor and the smaller of two available battery packs, a 48kWh lithium iron phosphate unit, delivering a claimed range of 310km (WLTP).
Stepping up to the Ora Extended Range brings a larger 63kWh nickel manganese cobalt battery which increases range to 420km, with the price bumping up to $45,990 plus on-road costs, or $47,670 driveaway in Queensland.
The range-topping Ora GT now costs $51,990 plus on-road costs, or $53,790 driveaway, with GWM also announcing that it has added a new Ultra grade to the lineup, positioned between the extended Range and the GT.
Featuring the larger 63kWH battery pack and claimed 420km range, the Ora Ultra gets several additional comfort and convenience features over the Extended Range.
These include electric hands-free tailgate, panoramic sunroof, heated steering wheel, six-way electric driver's seat with memory, front seats with heating, ventilation and massage functions, and Power adjustable, electric auto-folding mirrors with memory function.
The pricing means buyers of any of these GWM Ora models are eligible for the Queensland Zero Emission Vehicle Rebate Scheme, which provides rebates of $3000 for new EVs up to a dutiable value of $68,000 (including GST), or $6,000 on EVs up to the same dutiable value for households with a total taxable income of $180,000 or less per annum.
Numerous other models from different manufacturers are also eligible for the rebate scheme, but at the lower end of the market GWM is locked in a three-way battle with rival Chinese car makers MG and BYD for the title of Australia’s most affordable electric vehicle.
MG beat GWM to the punch in June when it unveiled what it hailed as Australia’s first sub-$40,000 EV, the MG4 Excite electric hatchback.
The MG4 isn’t due to arrive until August but when it does MG says the entry-level Excite will have a 125kW motor, 51kWh battery, 350km range, and be priced from $38,990 plus on-road costs.
The BYD Atto 3 has made is proving popular in Australia.
Other models in the MG4 range include a version of the Excite and the better-equipped Essence equipped with larger 64kWh battery, 150kW motor, and circa 450km range, that will cost $44,990 and $47,990 respectively.
At $55,990, the top-of-the line MG4 Essence boasts the largest 77kWh battery, 180kW motor and 530km range.
The other Chinese model vying for the attention of value-focused EV buyers is BYD, which announced its own cut-price new model the BYD Dolphin within days of MG4 pricing being revealed.
The Dolphin is the second battery electric model from BYD and joins the BYD Atto 3 small SUV which has already made something of a splash with its sub-$50,000 pricing and distinctive design.
The new Dolphin is positioned as the price leader in the BYD range with a starting price of $38,890 plus on-road costs.
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The BYD Dolphin is the second battery electric model from MG to be introduced in Australia.
The three Dolphin model grades include the entry-level Dynamic and the long-range Premium, both of which will be available this year, with a Sport variant arriving in 2024, according to BYD
The base model BYD Dolphin Dynamic features a 70kW/180Nm motor, 44.9kWh battery and a claimed driving range of 340km (WLTP).
The BYD Dolphin Premium version gets a more powerful 150kW/310Nm motor, 60.48kWh battery and is good for an estimated 427km of range (WLTP).
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The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.