Australia’s electric vehicle market is poised for a major transformation in 2026, with an influx of new models and sharply lower prices reshaping the landscape for buyers and challenging traditional carmakers. Consumers can expect to see a wave of new electric utes, hatchbacks and SUVs hitting showrooms — many of them priced significantly below current offerings — as competition intensifies and manufacturers pivot toward more affordable electric mobility.
Leading the charge is the BYD Atto 1, a compact city hatchback confirmed as Australia’s cheapest electric car, with a starting price of just $23,990 plus on-road costs. This aggressive pricing positions the Atto 1 well below existing budget EVs like the BYD Dolphin and Chinese rivals such as the GWM Ora and MG4, and is expected to make electric-vehicle ownership more accessible to a broader segment of motorists.
The arrival of the Atto 1 reflects a broader shift in the market toward low-cost EVs and follows strong pre-order interest in similarly priced models. The slightly larger BYD Atto 2 SUV, priced from around $31,990 plus on-road costs, is also set to be among the most affordable electric SUVs available in Australia, further widening buyers’ options.
This year isn’t just about budget city cars. A host of new electric vehicles are scheduled to arrive on Australian roads, covering a wide range of segments and price points. Traditional brands are joining the electric push with their first dedicated models, including Mazda’s all-electric 6e sedan — making its debut in mid-2026 — and an electric version of Toyota’s ubiquitous HiLux ute, anticipated to attract fleet and private buyers with prices tipped between $90,000 and $100,000.
Japanese and Korean manufacturers are also broadening their EV portfolios, with compact city-friendly offerings like the Honda Super-ONE and larger family-oriented options from Hyundai and Kia expected to arrive throughout the year. Chinese brands remain prominent, with SUVs and larger multi-purpose vehicles such as XPeng’s X9 people-moverslated for release.
Market analysts say the increased variety and competitive pricing represent long-awaited progress for Australia’s EV sector, which has often lagged behind markets like Europe and China in affordability and uptake. Swinburne University mobility expert Professor Hussein Dia noted that the combination of more models and lower prices could help overcome lingering consumer hesitation and stimulate broader EV adoption after years of constrained supply and premium pricing.
However, the expansion comes amid ongoing debate over policy and regulation. Federal discussions around a potential road-user charge for electric vehicles and reviews of existing tax exemptions could influence the pace of uptake and manufacturers’ pricing strategies. Experts warn that altering incentives too soon could dampen momentum just as more affordable EVs enter the market.
Even so, growing sales figures suggest the shift is already underway. Electric and plug-in hybrid vehicle sales have climbed in recent months, contributing to significant declines in internal-combustion car market share and reflecting increasing consumer interest in electrified transport options.
Overall, 2026 looks set to be a pivotal year for electrification in Australia, with an unprecedented range of new electric vehicles offering more choices at lower prices — potentially accelerating the nation’s transition to cleaner transport.
