Electric car crashes through Australian price barrier
The cost of one new electric car model in Australia has dropped to below $31,000 for the first time.
The MG4 now cost less than $31,000. Photo: AAP
But industry experts say the fierce price battle is only playing out among cheaper and smaller electric cars, with Australian taxes reducing competition at the other end of the market.
MG lowered the price of electric vehicles in Australia again, cutting the price of its entry-level MG4 hatchback to $30,990 until the end of October.
The sum is $8000 lower than its recommended price in August and comes despite strong sales for the vehicle in Australia.
The price cut makes the MG4 Australia’s cheapest electric car, followed by the MG SZ EV ($34,990) that had a price reduction in August, and the GWM Ora hatchback that held the title after a price cut in April ($35,990).
MG Motor Australia chief commercial officer Giles Belcher said the lower price was designed to encourage motorists on the fence about buying an electric car to make the move.
“We know that people may have been considering an EV but potentially have held off due to the cost,” he said.
“(This) ensures all buyers who had been thinking of making the switch to an EV now can thanks to the lower entry point.”
The MG4 has been one of the top-selling electric hatchbacks in Australia in 2024, with more than 3387 sold until August, according to the Federal Chamber of Automotive Industries.
By comparison, BYD has sold 1639 of its Dolphin hatchbacks and GWM has sold 781 Ora models.
Other companies to cut the price of electric vehicles in Australia this year have included Tesla, Lotus, Renault and Peugeot.
Polestar Australia managing director Scott Maynard said the electric car price war was limited to the mid and entry-level segments of the local automotive market.
“There’s a massive battle playing out in the sub-$70,000 bracket where so many brands, both existing and new, are clambering to dominate that segment,” he said.
Australia’s high-end electric car market was restrained by the 33 per cent tax on high-end cars and greater competition could be unlocked if the federal government removed it, he said.
“The luxury car tax that applies to electric vehicles doesn’t make sense,” Maynard said.
“It’s an archaic tax that was brought in to support a car industry that we no longer have and to see the abolishment of that would be a great step towards encouraging electric vehicle sales in the country.”
The luxury car tax also came under scrutiny at a recent Transition to Electric Vehicles inquiry hearing, which heard claims from the Australian Automotive Dealer Association that some manufacturers were reluctant to import high-end electric cars to Australia due to the tax.