The Telegraph reported on May 16 that the price of electric vehicles in Australia has fallen significantly due to a slowdown in sales. At the same time, automakers are bracing for challenges from Chinese brands such as Xpeng, Leap and Zeekr.
Driven by the success of brands such as Great Wall, BYD and MG, more Chinese EV brands are expected to land in Australia, which will bring more choices to Australian consumers and also drive changes in the market landscape.
Over the past two years, the price of popular electric vehicles such as Tesla's Model Y has fallen by more than $12,000, while luxury cars such as Mercedes, BMW and Audi have also fallen by $100,000.
Peugeot overestimated demand for its electric compact SUV, slashing the price of the e-2008 by more than $200,000 ahead of the new financial year to clear its inventory, with the naked car as low as $39,990.
(Image source: The Telegraph)
Polestar has slashed the price of its electric sedan by $15,000, while Renault has slashed the price of the Megane E-Tech by $10,000 to clear excess inventory. At the same time, the price of electric vehicles for luxury brands has dropped even more, such as the Lotus Eletre by $49,000 and the Mercedes-AMG EQS 53 by more than $100,000.
(Image source: The Telegraph)
For those who have already bought a high-end electric vehicle, a significant price change is bad news, as the price of a used car can be affected by the volatility of the new car market. Although Australians bought more electric vehicles in the first quarter of 2024 than in any previous year, the growth rate has slowed.
According to a report by the Federal Chamber of Automotive Industries, Australians bought 31,662 electric vehicles in the first quarter of 2024, up from 23,926 in the same period last year.
In April, the market share of electric vehicles fell from 7.9% in 2023 to 6.4% in 2024, while sales of hybrid vehicles rose from 7.5% to 18.3%.
(Image source: The Telegraph)
Kia Australia's Damien Meredith said the EV market would rebound as new Chinese brands entered. The success of BYD, Great Wall Motors, and MG has propelled new brands such as Xpeng, Leap, and Zeekr into the market.
"As far as we know, there are about six...... We believe that in the next 12 months, there may be more than 10 Chinese brands entering the market. "We remain confident in the sales market for electric vehicles."