Chery Australia has resharpened the pencil on its E5 small electric SUV. The MY26 stock is now $37,990 drive-away in a single Ultimate trim, available on cars ordered and delivered between 8 April and 30 June 2026. The previous range-topper sat at $40,990 before on-road costs, so the cut is meaningful once you factor in stamp duty and rego.

What the new price buys you

Chery has bundled what used to be optional kit into the standard car. The Ultimate now includes a sunroof, synthetic leather upholstery, heated front and rear seats, a heated synthetic leather steering wheel, ambient lighting, a 50W wireless phone charger, and a premium sound system. The model itself is unchanged: a front-driven battery-electric small SUV pitched directly at the BYD Atto 3 and Geely EX5.

Where it sits in the segment

At $37,990 drive-away, the E5 Ultimate undercuts the BYD Atto 3 Premium ($39,990 plus on-roads) by roughly $4,000 once you stamp it on the road. It also lands cheaper than the Geely EX5 Complete, which moved up to $41,990 plus ORCs for the 2026 update. The Tesla Model Y stays in a different price postcode. The MG4 EV Urban, now Chinese-built and priced from $31,990 drive-away, undercuts everything but in hatch form, not SUV.

For an Australian buyer doing the cross-shop, the E5 is now the cheapest drive-away electric small SUV with a full feature list. That is a sharper position than Chery had two months ago.

Cartell Assessment

The interesting question is not whether the E5 will sell more cars, it is whether the market is now priced to a point where any of the European-badged small EVs can compete without a fleet discount. The Atto 3 will likely respond with its own drive-away offer. The Geely EX5 has just had a battery bump, so Geely will lean on range rather than price. Chery is betting that drive-away simplicity and feature parity beat range numbers most buyers will never use.

The risk for Chery is brand awareness. The E5 has been on sale long enough to have a service-and-warranty story, but it is still a second-tier badge in a segment that rewards familiarity. The drive-away price helps. Showroom traffic helps more.

AU Outlook

Watch the May VFACTS numbers when FCAI releases them next week. Chery has been climbing the brand rankings, but the E5 specifically has been a low-volume seller. A clear month-on-month lift would tell us the price cut is doing the work. If volume stays flat, the issue is brand pull, not sticker shock. Either answer is useful for what Chery does next.