Two years ago the cheapest new EV in Australia cost about $40,000. Right now it costs $23,990 plus on-road costs, and there are seven electric cars you can buy under the $40,000 mark. Prices below were checked against manufacturer sources on 28 August 2026, with the pricing basis stated for each car, because a drive-away price and a list price are not the same thing.

1. BYD Atto 1: from $23,990 plus on-roads

The BYD Atto 1 is the cheapest new electric car in the country, and it is not a stripped-out compliance special. The $23,990 Essential gets a 30kWh battery, a 65kW motor and a 220km WLTP range, which sounds small until you remember the average Australian commute is under 40km a day. The $27,990 Premium is the one we would buy: 43.2kWh, 115kW, 310km of WLTP range, LED headlights, heated seats and a surround-view camera. Both get vehicle-to-load, wireless CarPlay and a 10.1-inch screen. It is the size of a Suzuki Swift, so think city car, not family car. Warranty is 6 years and 150,000km on the car, 8 years and 160,000km on the battery.

2. Geely EX2: from $26,490

The Geely EX2 is the newest arrival on this list and the one doing the most with its price. The $26,490 Complete gives you 252km of WLTP range, power front seats, a 14.6-inch screen and the full active safety suite. The $30,990 Inspire lifts range to 345km and adds heated seats, a power tailgate and a surround-view monitor. All EX2s are rear-wheel drive with an 85kW motor, there is a 70L frunk, and Geely backs it with a 7 year unlimited kilometre warranty, the best coverage of any car here. Geely has also been sweetening launch deals with a free 7kW home charger, so check the current offer before you sign.

3. BYD Dolphin: from $29,990 plus on-roads

The Dolphin is the step up if the Atto 1 is too small. It is a proper light hatch with usable rear seats, and the Essential opens at $29,990 plus on-road costs. It has been on sale here since 2023, so there is a track record and a used market, and BYD's dealer network has grown from a handful of sites to a national footprint in that time. If you are cross-shopping this size of car, our BYD Atto 3 review is a useful read on how BYD builds its interiors.

4. BYD Atto 2: from $31,990 plus on-roads

The Atto 2 is the cheapest electric SUV shape you can buy new. From $31,990 plus on-roads it gives you the raised seating position and easier entry that a lot of buyers actually want, and BYD is currently running a $2,000 bonus offer on the Premium grade for orders before 30 September. If the badge on the nose matters less than the space inside, this is where small-SUV money goes furthest.

5. MG4 EV Urban: from $31,990 drive-away

The MG4 family now starts with the Urban, and at $31,990 drive-away for the Essence 43 it is sharp buying, because that figure includes rego, CTP and stamp duty while the BYD prices above do not. The $34,990 Essence 54 stretches range to 405km WLTP. Both are rear-wheel drive, and the MG4 remains one of the best-steering affordable EVs on sale, something we found when we reviewed the MG4. If you want more range, the full-size MG4 Essence 64 runs a 64kWh battery, 452km of WLTP range and $39,990 drive-away, which sneaks it under our cap.

6. Leapmotor B05: from $35,990 drive-away

The newest badge here. The Leapmotor B05 has just landed at $35,990 drive-away for the Style, which pairs a 56.2kWh battery with a 160kW rear motor and 401km of WLTP range. That is the most power per dollar on this list. The catch: the launch price applies to cars in Lightning Yellow delivered by 30 September, so the colour choice is the discount. The $38,990 drive-away Design LR lifts the battery to 67.1kWh and range to 482km, the longest of any car here.

7. Hyundai Inster: from $39,000 plus on-roads

The Inster is the established-brand option, listed from $39,000 plus on-road costs. On paper that makes it the most expensive car on this list for the least range, but Hyundai has been running aggressive drive-away campaigns on the Inster all year, so the transaction price is often well below the list figure. What you are paying for is Hyundai's dealer network, resale strength and a cabin that feels more expensive than the price. Check the current national offer before you rule it out.

Cartell Assessment

If the car will live in the city and you have a driveway or garage to charge in, buy the Atto 1 Premium at $27,990 plus on-roads and bank the savings. If you need one car to do everything, the MG4 EV Urban Essence 54 at $34,990 drive-away is the sweet spot of price, range and the way it drives. The EX2 Inspire is the pick if warranty length decides things for you, and the B05 Design LR is the range king if you can live with the launch colour. Whichever way you go, run the numbers on a novated lease first: the FBT exemption can make any car on this list cheaper to own than a petrol equivalent, and we explain how in our hybrid vs electric guide.

AU Outlook

This list gets cheaper every quarter. BYD, Geely, MG, Chery and Leapmotor are in an open price war at the bottom of the market, and the sub $30,000 tier that did not exist eighteen months ago now has three cars in it. If you are waiting for prices to fall further you may be right, but the current campaign deals are already doing the falling for you. First car for a new driver? Cross-check this list against our best first car guide before you commit.