Affordable electric cars are coming sooner than you might think with Fiat 500e, BYD Atto 3, MG4, Hyundai Ioniq 2 and more on the way

MG hailed the recent return of its ZS EV under the headline of “Australia’s most affordable EV” - but even at $44,990 drive-away, the Chinese small SUV can hardly be considered a ‘cheap’ car.

But there’s reason to hope that we could be on the cusp of a turning point for the automotive industry, with a new wave of even more affordable electric cars headed our way in the near-future that could finally bring them under a $40,000 starting price.

The reason is simple, carmakers are finally starting to get the economies-of-scale necessary for battery production, while at the same time the consumer shift towards electric vehicles means they need a broader range of options. 

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Specifically, car companies need smaller, more affordable electric cars that can grow the audience.

Below we’ve outlined the most affordable electric models at present and take a look at what could soon be headed our way.

MG ZS EV

The new ZS EV has a range of 322km.

The current price leader begins at $44,990 drive-away for the Excite grade and $48,990 for the better-equipped Essence variant. The ZS EV was previously the most affordable electric model in Australia before it was temporarily off the market while this updated version prepared to arrive.

As the old saying goes, ‘you get what you pay for’, so the ZS EV isn’t a market-leader in terms of performance, range or charging times, but it’s a solid offering. 

Importantly the Chinese-owned brand has increased the range to a claimed 322km, which is a major improvement over the old model which only offered 263km of running. 

BYD Atto 3

The new Atto 3 Standard Range model is priced from ,381.

MG’s very overt re-launch of the ZS EV with its attention-grabbing pricing was seemingly driven by the recent arrival of another Chinese brand with big aspirations for the Australian market, BYD.

The new Atto 3 Standard Range model is priced from $44,381, but that price doesn’t include on-road costs, which push it just above the MG (depending on which state you live in). BYD also offers the Atto 3 with Extended Range starting $47,381 - giving it a pair of rivals to the ZS.

BYD has big plans for the Australian market too, with several other models earmarked for local sale. These include the Seal sedan and Dolphin hatch (name changes likely), which could undercut both the Atto 3 and MG ZS EV for price and potentially enter the $30,000 range.

MG4

The MG4 is set to reach Aussie shores in early 2023.

The race to offer an electric car starting with a three could heat up between BYD and MG, with the latter set to introduce its all-new MG4 to the Australian market in early 2023.

The crossover hatch powered by a single, rear-mounted electric motor that makes 125kW with a 51kWh battery good for a driving range of 350km. There’s also a 64kWh battery available which boosts range to 450km range and power to 150kW.

Importantly, using UK pricing as a guide there’s evidence to suggest the MG4 could slot underneath the ZS EV in terms of price, possibly below $40,000. This would be a breakthrough for an electric car in Australia not seen since the early days of the Nissan Leaf; which quickly rose above $50,000.

Fiat 500e

The 500e is a fresh twist on the EV.

Another possible contender to be the next electric car under $40k doesn’t come from China, but instead Italy. 

Fiat Australia finally confirmed the pint-sized, retro-styled electric city car is headed our way but pricing and specifications remain a secret.

What we do know is that in the UK it starts at the equivalent of $A35,000, which at least leaves open the possibility that it could soon become Australia’s most affordable electric car.

It will be a challenge though for the Italian brand to compete with the bigger and more aggressive MG and BYD, but at the very least the 500e will be a fresh twist on the EV for buyers looking for something different.

Hyundai Ioniq 2

Hyundai could introduce an electric model that sits below the Ioniq 5.

The South Korean brand has evolved into a mainstream player in the Australian market in recent years with a focus on more premium and stylish models. But it built its reputation in this country on the back of affordable cars like the Excel and Accent, and it could once again lead the market with the rumoured Ioniq 2.

The ‘e-GMP’ platform that underpins the Ioniq 5 and Kia EV6 is reportedly scalable and will spin-off several more models. Earlier this year, Hyundai’s European marketing boss revealed the company was working on a “battery-powered low-end, pure mini electric vehicle” for launch in Europe within “the next few years” to compete against the Fiat 500e and others.

Given Hyundai’s size and the possibility it could utilise the ‘e-GMP’ platform for greater economies-of-scale with a small model, the potential for an Ioniq 2 to become an affordable electric option in the future is clear to see.