This is really why EVs are getting cheaper
EV prices are at an all-time low for Aussie buyers. The BYD Atto 1 is available from $19,990 (drive-away) until 15 December 2026, making it the most affordable new car on sale in Australia. This makes it cheaper than the petrol-powered Kia Picanto hatch that previously held the title.. While the Kia Picanto's retail $19,190 price is lower, this does not include on-road costs that push its drive-away cost in excess of the $20,000 mark.. Other budget-focused players are also gathering steam like the Geely EX2 ($26,490), MG4 Urban (from $29,990 as a limited offer) and the incoming GAC Aion UT Standard Range..
It's not just affordable EVs getting cheaper, SUV segments aren't far behind.. Fuel prices have driven EV demand, but government rules are having a different sort of impact. The Australian federal government's New Vehicle Efficiency Standard (NVES) has brands seriously thinking about what models they introduce to the market Down Under. This is because cars sold that emit high levels of CO2 now incur significant fines, and count towards each brand's fleet total.. Pure combustion cars, whether they are petrol or diesel powered, generally fall foul of emissions regulations which has seen brands remove those models from their line-up in favour of hybrid or fully-electric alternatives. Head of the EV Council and Origin Energy E-mobility GM Chau Le told CarsGuide NVES was driving competitive pricing for electric vehicles in Australia. "Thanks to the New Vehicle Efficiency Standard, we now have over 100 EV models in Australia and across quite a number of segments from affordable, smaller cars all the way to larger SUVs," Le said. "In each of these segments, EVs are becoming competitive, but we're not quite there yet in some of the segments. "We're still a bit out, but with more EV models coming in and improvement in battery technology, it's only a matter of time until we're competitive across all segments." Kia Australia's General Manager Marketing Dean Norbiato told CarsGuide in May 2026 the Korean brand was pivoting its popular Seltos SUV to hybrid-only due to potential NVES fines. The outgoing Seltos SUV is sold in Australia with both petrol- and hybrid-powered set-ups. "You just have to look at the penalties for NVES on a petrol vehicle versus a hybrid vehicle," Norbiato said. "For us to be a sustainable OEM in this market, hybrid obviously makes sense from that standpoint." Kia's sister brand, Hyundai, has also signalled its intent to switch much of its incoming range of next-generation vehicles to hybrid-only..
Expanding EV options doesn't automatically boost buyer demand, according to Federal Chamber of Automotive Industries Chief Executive Tony Weber. "The impact it [NVES] has had has been on the supply of vehicles.. And we now are in a market in Australia where there's 132 EVs on sale in the country, and there's 80 plug-in hybrid models," Weber told CarsGuide. "What NVES doesn't do is address the demand issue.. And therein lies the challenge for the industry." Electric car sales are not surging in all areas of the market, and the ute segment is still dominated by diesel-powered options. The popular Ford Ranger had a slow August 2026 due to an ongoing recall preventing deliveries..
It was still the sixth best-selling car in the country, while the Toyota HiLux held a place in the top three. The plug-in hybrid BYD Shark 6 has been a game-changer for the segment in Australia, and it has been one of the few utes to see sales growth in the last 12 months. Even though the Shark 6's sales have grown significantly, buyers are still primarily choosing diesel options. BYD's ute has sold only roughly a third of the units compared to the Ranger in 2026. Weber said demand is not driven by NVES, but external factors like the price of petrol and the subsidisation of EVs.. He said the technology needs to be available before buyers make the jump.. "Now, you can argue, and quite rightly, that NVES has had an impact, say in the ute market, because we're now seeing plug-in hybrids," Weber said. "The question I have is whether those products would have come to the market anyway, because what also drives change in markets is competition..
"I think people will buy the car that meets their needs and wants and until the technology can actually satisfy those people in those segments, that will limit what they buy. "This is one of the great barriers as we move forward on that pathway to zero-emission vehicles." Electric cars outsold petrol- and diesel-powered cars for the first time in a single month in August 2026.. The SUV segment has been the latest to see a surge in EV sales, with three of the top 10 for August 2026 being fully-electric. SUVs show how technology reaches an enticing level to boost buyer demand.. Many models now boast driving range exceeding 450km and there are now three-row options at more price points. Utes remain a difficult segment for fully electrics to crack, with towing and driving range key aspects of a buyer's decision. The BYD Shark 6 initially launched with a 2500kg braked towing capacity - short of the industry standard 3500kg. BYD has since introduced a performance grade that reaches the 3500kg, but it is the most expensive in the range, starting from $62,900. The Toyota HiLux BEV launched in May 2026..
It only offers a 240km (WLTP) driving range and a 2000kg towing capacity, despite being the most expensive variant in the range ($74,990).. The recently-revealed MG U9 will launch in Australia the fourth quarter of 2026 with a 3500kg towing capacity and 430km driving range, but it carries a $78,990 price tag.. It costs buyers noticeably more money to drive out of the showroom with an electric ute than a diesel-powered one..
As technology improves and demand picks up, this gap will shrink. .