BYD entered the Australian market in 2022, and its pricing and build quality now make it a top choice for prospective EV buyers
Chinese electric vehicles are gaining momentum in Australia, although overall interest in EVs has declined, according to new data.
BYD, a Chinese manufacturer based in Shenzhen, entered the Australian market in 2022 and has quickly risen to become one of the most popular brands. It is now the most frequently considered choice among prospective EV buyers, surpassing Tesla.
The data suggests BYD’s affordability plays a significant role in its appeal. Its Dolphin model, a compact electric hatchback priced at $38,890, is marketed as Australia’s most affordable EV. In comparison, Tesla’s entry-level Model 3 starts at $54,900, making it approximately $20,000 more expensive.
Ross Booth, director of Carsales data services, noted that “price remains a key barrier to EV adoption.” He highlighted that while petrol vehicle prices have risen by 20% since 2021, EV prices have decreased by about 9%, or roughly $3,000 on average.
Mr. Booth added that increasing competition, with up to 12 new Chinese car brands set to enter Australia focusing heavily on EVs, is likely to drive prices down further in the coming years.
The report also revealed shifts in consumer behavior. Loyalty among current EV owners has declined, with the percentage of owners considering another EV dropping from 95% in May last year to 83% now.
Generational differences also emerged. Gen X leads in EV consideration, while baby boomers were more influenced by misconceptions about charging times, availability of charging stations, and range. About 62% of surveyed baby boomers worried about range limitations, and 53% were concerned about depreciation.
Gen Z, on the other hand, expressed unique reservations. Nearly half found EVs “too quiet,” while one-third doubted their safety. Another 33% disliked the aesthetics of EVs, reflecting a strong preference for internal combustion engine (ICE) vehicles. Only 22% of Gen Z respondents—the lowest across generations—had considered buying an EV.
Performance remains a key factor driving the switch from ICE to EVs. Additionally, consumer preferences in EV types have shifted. SUV popularity, once the top choice for nearly half of buyers, has dropped to about one-third. Meanwhile, utes have gained traction, rising from 4% of preferences last year to 15% this year.
