The sub-$30,000 EVs breaking new ground in Australia

An influx of small electric vehicles onto the local market this year has led to prices on par with that of their internal combustion engine equivalents.

The groundswell is being driven by Chinese carmakers, with at least four newcomers already here or on their way to Australia before the end of the year.

Leading the charge has been BYD, with the release of the BYD Atto 1 light car in early 2026.

Starting from $23,990 (all prices are before on-road costs unless otherwise stated) for the base Essential with a modest 30kWh battery, it created history by becoming the first EV in this country to cost less than the least-expensive Toyota Yaris (base Ascent Sport hybrid from $29,190).

In fact, the Chinese electric supermini is about the same price as the base Suzuki Swift mild-hybrid auto from $26,990 drive-away, as well as the MG3 Hybrid+ from $27,888 drive-away.

The Atto 1, also available in a bigger, 43.1kWh battery Premium from $27,990, also represents a $6000 saving over Australia’s previous cheapest new EV: the BYD Dolphin small car, which continues to retail from $29,990 for the entry-level Essential.

However, the Dolphin is considerably larger than the baby BYDs - about the size of a Toyota Corolla - and has a more generous 45kWh battery, offering considerably greater range between charges.

The Atto 1’s launch timing was fortuitous for the company, arriving in showrooms around the same time as the beginning of the conflict in Iran, which led to fuel price spikes and an increase in demand for EVs.

BYD arch-rival Geely released its EX2 EV last month, priced from $26,490. It comes in two distinct models – the entry-level Complete, featuring a 35.3kWh battery, and the Inspire, which costs from $4500 more, with a 47.1kWh battery.

Both Geely EVs neatly wedge themselves between the BYD siblings for both pricing and size, giving greater choice to Australian motorists seeking a sub-$30,000 urban electric runabout.

In fact, the EX2 has been the best-selling vehicle in China since being released there in 2024, breaking new records and creating a cult following with its cutesy styling and sophisticated packaging.

Not to be outdone, GAC announced earlier this week that a smaller, 44kWh battery version of its Aion UT small EV hatch is coming before the end of 2026.

Expected to cost from about $28,000, it will undercut the existing, 60kWh Luxury grade, which retails from $31,990.

Leapmotor, which has the Euro-American conglomerate Stellantis as a major shareholder, has also confirmed its competitor to the Atto1, EX2 and UT in the form of the B03X.

Anticipated sometime in the final quarter of this year, the company has expressed intentions of having it sell here at well-under $30,000.

So, why are cars from China so cheap?

It has been widely reported that the Chinese government heavily subsides each export vehicle.

Rival brands such as Toyota also point to the Chinese market offering massive scale, while cheaper labour, less rigorous development processes and vertical supplier structures also help keep manufacturing costs down.

Whatever the case, sub-$30K EVs are broadening the options for Australian new-car buyers seeking an inexpensive small car.