Two Chinese car manufacturers are causing a price war in Australia’s electric vehicle (EV) market by releasing the most affordable EVs in the country. MG Motor, owned by SAIC Motor, announced that they will be launching an entry-level model of their MG4 electric SUV priced at $38,990, a $6,000 drop from the previous price. This will be the first EV available in Australia for under $40,000. In comparison, other EV models from different manufacturers often exceed $50,000, with the Tesla Model Y costing over $68,000. MG Motor Australia CEO Peter Ciao stated that the aim of this move is to make EVs more accessible to Australians amid challenging economic conditions. The MG4 base model will have a reduced battery capacity but a range of 350 kilometers, comparable to low-end EV models from other manufacturers. In addition, MG Motor will stop production of the ZS EV Excite to make way for the MG4 in Australia.
Meanwhile, MG’s rival BYD is preparing to launch the BYD Dolphin, which the company claims to be Australia’s most affordable high-quality EV. The electric hatchback, with an estimated range of over 420 kilometers, was previously sold in New Zealand for around $45,000. Experts anticipate that the Australian model will fall between $30,000 and $40,000.
According to Australian Electric Vehicle Association president Chris Jones, Australian consumers will benefit from the competition between these two EV manufacturers. He believes that BYD will have to lower their prices to compete. Jones also highlights that Chinese automakers lead the price trend in Australia due to their large production capacity and sales volume in the Chinese market.
Although the drop in EV prices and growing competition has been seen in other countries, Australia has been slower to adopt this trend. Chris King, CEO of rideshare subscription firm Splend, notes that Australia has missed out on mass-market EV models and growing competition. He expects the EV space in Australia to follow the same path as other countries, starting with premium EVs and gradually moving towards more cost-effective options.
However, as the demand for EVs increases, Australia is also facing a significant battery waste problem. Experts predict that EV waste could reach 30,000 tonnes by 2030 and 1.6 million tonnes by 2050. Currently, the country lacks the necessary infrastructure, standards, and regulations to properly recycle EV batteries. Many experts are calling on the Australian government to establish a stewardship program where consumers will have to pay extra for the safe disposal of EV batteries.