In a surprising turn of events, buying a brand new electric vehicle (EV) has become more economical than acquiring a petrol car in Australia. The Chinese EV manufacturer, BYD, has dramatically reduced the price of its 2026 BYD Atto 1 Essential model. Initially priced at $AU23,990, the cost has now dropped to just $AU19,990 including all additional fees. This price cut translates to a decrease from roughly $17,000 to slightly above $14,000 based on the current exchange rate.
Price Wars in the Automotive Market
When the BYD Atto 1 was first introduced to the Australian market last year, its price of $AU23,990 made it the most affordable EV available. With the recent price adjustment, it now stands as the cheapest car overall in the nation, encompassing EVs, hybrids, and petrol vehicles.
Before this reduction, the title of the least expensive new car in Australia belonged to the manual 2026 Kia Picanto Sport, a petrol car priced at $AU19,190 (approximately $13,500). The inclusion of necessary on-road costs easily elevates the Picanto Sport’s price beyond the Atto 1 Essential, whose new $AU19,990 price already covers such fees.
A Temporary but Impactful Price Reduction
While BYD’s Atto 1 Essential is tied with MG’s MG3 Vibe for the cheapest new car at $AU19,990, the latter’s $AU1,000 cash back offer is slated to end on Sept. 30. This situation could soon leave the Atto 1 Essential as the undisputed most affordable car, although its own $AU19,990 price is a limited time offer running from Sept. 15 to Dec. 15.
Known by different names globally, such as the Dolphin Mini in Latin America and Seagull in China, the Atto 1 has been sold for as low as ¥56,800 (around $8,400) in its home market. This price cut is a promising indicator of the growing affordability of EVs worldwide.
EV Sales Soar in Australia
The Australian automotive landscape has seen a notable shift, with EV sales surpassing petrol car sales for the first time, making up 24.9% of all new car sales in August. This marks a 171% increase from the previous year, with EVs outperforming petrol, diesel, hybrid, and plug-in hybrid vehicles.
BYD emerged as Australia’s second most popular automaker, trailing only Toyota and surpassing Tesla. Australia’s Minister for Climate Change and Energy, Chris Bowen, stated, “Australians have seen through the scare campaigns and are voting with their wallets for cars that are cheaper to run, cleaner, and reduce their exposure to international petrol prices shocks,” highlighting the achievement as a “landmark moment.”
Challenges in the U.S. Market
While EVs become more accessible in Australia, the U.S. market faces hurdles. American consumers confront limited options due to high tariffs that restrict Chinese vehicle imports. Former President Joe Biden attributed this to China’s “unfairly low prices.” The elimination of EV tax credits by the Trump administration has further escalated prices.
In the U.S., Slate’s Blank Slate electric pickup truck is expected to cost $24,950 excluding fees, a significant increase from its initial sub-$20,000 target. Meanwhile, the 2027 Chevrolet Bolt remains the most affordable EV in the U.S., starting at $28,995, more than double the Atto 1’s price in Australia. The Nissan Leaf S+, priced at $29,990 before fees, is the next cheapest option, though plans for a more affordable model have been delayed.
Original Story at mashable.com