Australian electric car market to get influx of new models as cheaper EVs hit the road | Electric vehicles
Australians can expect to see more electric vehicles, sports cars and sedans breaking price records at both ends of the spectrum, with changes encouraging even the most reluctant brands to join the trend.
But the electric vehicle market could also see significant regulatory upheaval in 2026, with a road charge on the national agenda and a review of tax exemptions.
Both measures could have a significant effect on the local auto industry, as well as Australia’s goal of reducing emissions by between 62 and 70 percent by 2035, experts say.
More than 153 electric and plug-in cars were on sale in Australia in 2025, according to the Electric Vehicle Council, but many more are lining up to arrive this year.
They include several models from BYD, such as an electric sedan poised to command a record price of $23,990, and a high-end luxury sports car from Polestar that promises to hit 100 km/h in less than four seconds.
Traditional car brands are also expected to add to Australia’s electric options after Mazda announced plans to launch its 6e sedan, and Toyota slashed the price of its updated bZ4X SUV and confirmed the launch of a HiLux electric vehicle.
More competitive prices and choices would be appreciated by consumers, said Hussein Dia, future professor of urban mobility at Swinburne University, after years of challenges and limited supply.
“Market forces are moving in the right direction,” he said. “It’s good to have more cheaper models on the road.”
Some of the launches appear to be inspired by the new vehicle efficiency standard introduced in January, Dia said, and by automakers’ efforts to avoid being penalized for exceeding their emissions targets.
Sales of new electric, plug-in hybrid and hybrid vehicles all increased over the year, according to the Federal Chamber of the Automotive Industry and the Electric Vehicle Council, while sales of gasoline and diesel cars fell.
Regulatory changes could, however, alter this trajectory, after Treasurer Jim Chalmers announced a review of tax exemptions for electric cars in force since 2022.
Nearly 100,000 electric cars were purchased under the exemption, Chalmers said, which exceeded expectations.
The federal government is also considering introducing a road charge which could apply to drivers of electric vehicles who currently do not pay excise on fuel.
Introducing fees and removing rebates before electric cars account for 30% of new car sales could slow their adoption, Dia said, and make it difficult to meet environmental targets.
“I hope that this will not end up being a simple tax on electric vehicles and that it will be an opportunity to review the whole taxation system,” he said.
“We would like this to apply to all vehicles.”
A public consultation on the reduction on electric cars will be open until February 5.
Ten electric cars arriving in Australia in 2026
BYD Atto 1
($23,990): This sedan could be the cheapest electric car on the market when it arrives in Australia, with the base model promising a 220km range and fast charging.
North Star 5
($171,000): This Porsche rival is packed with luxury features. The base model comes with two motors and will reach 100 km/h in 3.9 seconds.
Hyundai Elexio
Expected at the start of the year, this mid-size SUV features a futuristic design and a battery that promises to travel more than 500 km per charge.
Honda Super-ONE
It may look like a small car, but this compact vehicle is real, was designed for urban driving and will launch in the second half of 2026.
Mazda6e
The famous Japanese car brand will add an electric sedan to its fleet in mid-2026. The 6th will feature a rear engine and a range of more than 500 km.
Toyota HiLux EV
Australia’s most popular car brand will deliver an electric version of its HiLux ute in the first half of 2026. It is expected to be priced between $90,000 and $100,000.
Kia PV5
An electric van will join Kia’s SUV and sedan range at the end of 2026 and promises a range of up to 412 km compared to its base model.
Suzuki e-Vitara
Suzuki’s first mass-produced electric vehicle will arrive early this year and in the form of an SUV. Its price has not yet been revealed but its base model could offer a range of 400 km.
XPeng X9
The latest vehicle from this Chinese brand is a seven-seater commuter vehicle that is expected to hit the roads in the second half of the year.
Leap B05 engine
The B05 is a five-door electric sedan due mid-year. It will feature a rear-wheel motor and a base range of 361 km.
