Inexpensive Chinese-EVs Dominate Australia’s Market

June 11, 2024

24 2 minutes read

Untitled design6 — byd expands ev production to europe this time to hungary.jpg

Australians are increasingly preferring inexpensive electric vehicles manufactured in China, with roughly 80% of sold EVs in the country reportedly being China-made.

As per the chief executive of the Federal Chamber of Automotive Industries (FCAI) Tony Weber, Australians buy automobiles at cheaper prices than other nations because the market is extremely open, with few tariffs or other restrictions.

According to sources, a Chinese-made BYD Seal costs roughly $50,000 in Australia, whereas European clients may pay around $90,000 (AUD) for an identical car. Almost 100 electric vehicle models are presently available in Australian dealerships.

The low end of the market is around $40,000, with the majority selling between $60,000 and $90,000. According to the report, Australians spent an average of $37,362 on new automobiles in 2023, while the average for compact cars was $26,454.

BYD Expands EV Production to Europe—This Time to Hungary — (Photo : Joshua Fernandez from Unsplash) BYD selected Hungary as the newest European country to house its EV production facility. The move only electrifies its rivalry with Tesla whom it surpassed earlier this year in terms of delivered units.

Australia’s preference for Chinese EVs proves to be reflective of BYD Co., the market leader in China-made EVs, recently making news for its strong sales results in May, which were boosted by a major price reduction. The firm nearly set a new sales record, demonstrating its rising dominance in the new energy vehicle (NEV) sector.

The company’s completely electric car sales are also increasing, with 146,395 units sold in May, up 22% YoY and 9% from April. This expansion follows the introduction of BYD’s lower-cost “Honor” edition models earlier this year, which were designed to increase competitiveness with internal combustion engine (ICE) cars.

Chinese EVs’ continued dominance in the EV industry has prompted numerous carmakers to follow and develop their inexpensive models. Recently, Volkswagen announced that the automaker intends to produce a low-cost electric vehicle type.

Volkswagen Joins the Race

Volkswagen plans to produce electric vehicles for the European market that will cost around 20,000 euros ($21,746). The business also announced plans for a global launch in 2027.

The ID.1 initiative is being launched at a time when Chinese competitors, some of which have a 30% price advantage against Western competitors, are vying for market dominance and challenging major manufacturers in Europe.

Volkswagen stated that the initiative will be highly reliant on localization in Europe, reducing component transportation routes and emissions. Volkswagen warned last week that the industry’s survival in Europe was jeopardized unless the European market was given two to three years of planning for the competitive onslaught.

As part of these efforts, Volkswagen is now executing ten billion euros in savings and cost-cutting initiatives at its namesake brand through 2026.

Ford’s Low-Cost EV Plans

Ford has also entered the low-cost EV competition, with its CEO recently announcing that the business is working to create and market more affordable electric vehicles, claiming that their next-generation EVs would be both lucrative and affordable.

Ford CEO Jim Farley has stated that the company’s electric car selection would compete with the finest available. In an interview, Farley noted that China’s strategic bet on electric vehicles has “paid off so far,” and Ford is aiming to replicate some of that success on US soil.