In 2023, buying an electric car under $40,000 in Australia meant choosing between a handful of options with limited range. In 2026, there are more than 15 electric vehicles available under $40,000 — spanning compact hatchbacks, small SUVs, and even a few mid-size options. The affordable EV market has been transformed, largely by Chinese manufacturers competing aggressively on price. Here is every EV under $40,000 you can buy in Australia right now, ranked by value.
Under $25,000: The New Entry Point
BYD Atto 1 — from $23,990 + ORC
This is a landmark car for Australia. The Atto 1 is the cheapest new electric vehicle ever sold in Australia, and it is not a stripped-out penalty box. It comes with a 340km WLTP range in base form (427km in the higher-spec variant), a large touchscreen, ADAS safety features including autonomous emergency braking and lane-keeping assist, and a 6-year/150,000km warranty. For buyers whose primary concern is minimising purchase price, this is a genuine consideration. The caveat: the Atto 1 is a compact car best suited to city and suburban driving rather than long-distance touring.
$25,000–$32,000: The Sweet Spot for Practicality
BYD Dolphin — from $29,990 + ORC
The Dolphin is arguably Australia's best-value all-around affordable EV. The standard range version offers 340km WLTP with a peppy 70kW motor; the Extended Range steps up to 427km and 150kW. The interior quality is genuinely competitive with Japanese hatchbacks at the same price point, and the Dolphin has proven reliable in the Australian market since its launch. It qualifies for the Queensland $6,000 EV rebate, bringing the effective price below $24,000 in that state — making it the cheapest practical new EV available to Queensland buyers.
$32,000–$38,000: Growing Range and Features
MG4 Excite 51 — from $37,990 drive-away
The MG4 has been one of Australia's most popular EVs since launch and continues to offer strong value. The Excite 51 uses a 51kWh battery for 350km WLTP range, while the larger 64kWh variant stretches to 450km. DC fast charging at up to 117kW means 10–80% in around 35 minutes. The MG4 benefits from MG's established Australian dealer network for after-sales support — a meaningful advantage over newer Chinese entrants.
Jaecoo J5 BEV — from $36,990 drive-away
A newer entrant from Chery's premium-leaning sub-brand. The J5 BEV offers a 402km WLTP range and 28-minute 10–80% fast charging. Strong build quality and a premium-feeling interior make it an impressive offering at this price. The brand is very new in Australia, so the long-term service network remains to be established — factor this into your buying decision.
BYD Seal U DM-i — from $37,990 drive-away
If pure range anxiety is your concern, the Seal U DM-i is a plug-in hybrid SUV with a combined range exceeding 1,000km (including both battery and petrol). As a PHEV it offers a best-of-both-worlds approach: run on battery for daily commuting (approximately 80km electric range) and switch to petrol for long trips. The trade-off is the added complexity of maintaining both a battery and a petrol engine.
$38,000–$40,000: Approaching the Sweet Spot for Most Buyers
GWM Ora — from $38,490 drive-away
The Ora offers 420km WLTP range and distinctive retro-inspired styling. It sits on GWM's EV-specific platform and offers a genuinely comfortable ride for a car at this price point. GWM has an established and growing Australian dealer network through its Haval brand, which reduces the after-sales risk compared to newer market entrants.
Geely EX5 — from $39,990 drive-away
Geely's Australian debut has been strong, with the EX5 offering a premium feel at a price point that undercuts equivalent Japanese and Korean SUVs. The 450km WLTP range is competitive, and Geely's global engineering credentials (they also own Volvo and Polestar) give buyers some confidence in long-term quality.
What to Check Before You Buy Any Affordable EV
Warranty terms and conditions. All Chinese-brand EVs in this price range offer 6–8 year warranties on the vehicle, but battery warranty terms vary. Read the fine print on battery capacity guarantee (most offer 70% capacity warranty over 8 years).
Charging compatibility. Australia's public charging network predominantly uses the CCS2 standard. Confirm your chosen EV is CCS2 compatible. Tesla's Supercharger network now accepts non-Tesla EVs, adding thousands of fast chargers to your accessible network.
Resale value expectations. As discussed in our Chinese car resale guide, the used market for newer brands is still forming. If resale value is critical to your decision, established brands (Tesla, MG, BYD Dolphin/Atto 3 which have longer track records) carry less uncertainty.
Government incentives. Queensland offers a $6,000 rebate on eligible EVs under $68,000. The Northern Territory offers stamp duty concessions. The Federal FBT exemption applies to EVs under the luxury car tax threshold — a significant saving for novated lease buyers.
The Bottom Line
The $40,000 budget that could barely get you into an EV in 2023 now gives you genuine choice across multiple segments, with competitive ranges, strong feature lists, and real warranties. The affordable EV market in Australia in 2026 is the most competitive it has ever been — and it is only going to get more competitive as the year progresses.
Want to know the real market price for your specific car?
Get a Free Valuation →