<?xml version="1.0" encoding="ISO-8859-1"?> <docID>329575</docID> <postdate>2024-09-23 13:53:11</postdate> <headline>Electric cars crash through Aussie price barrier again</headline> <body><p><img class="size-full wp-image-329576" src="https://citynews.com.au/wp-content/uploads/2024/09/20230310001773522617-original-resized.jpg" alt="" width="900" height="600" /></p> <caption>The MG4 has become Australia's cheapest electric car after a temporary price discount. (Bianca De Marchi/AAP PHOTOS)</caption> <p><span class="kicker-line">By <strong>Jennifer Dudley-Nicholson</strong></span></p> <p><strong>Electric vehicles have crashed through another price barrier in Australia, with the cost of one new model reduced to less than $31,000 for the first time. </strong></p> <p>But industry experts say the fierce price battle is only playing out among cheaper and smaller electric cars, with Australian taxes reducing competition at the other end of the market.</p> <p>MG lowered the price of electric vehicles in Australia again, cutting the price of its entry-level MG4 hatchback to $30,990 until the end of October.</p> <p>The sum is $8000 lower than its recommend price in August and comes despite strong sales for the vehicle in Australia.</p> <p>The price cut makes the MG4 Australia's cheapest electric car, followed by the MG SZ EV ($34,990) that had a price reduction in August, and the GWM Ora hatchback that held the title after a price cut in April ($35,990).</p> <p>MG Motor Australia chief commercial officer Giles Belcher said the lower price was designed to encourage motorists on the fence about buying an electric car to make the move.</p> <p>"We know that people may have been considering an EV but potentially have held off due to the cost," he said.</p> <p>"(This) ensures all buyers who had been thinking of making the switch to an EV now can thanks to the lower entry point."</p> <p>The MG4 has been one of the top-selling electric hatchbacks in Australia in 2024, with more than 3387 sold until August, according to the Federal Chamber of Automotive Industries.</p> <p>By comparison, BYD has sold 1639 of its Dolphin hatchbacks and GWM has sold 781 Ora models.</p> <p>Other companies to cut the price of electric vehicles in Australia this year have included Tesla, Lotus, Renault and Peugeot.</p> <p>Polestar Australia managing director Scott Maynard said the electric car price war was limited to the mid and entry-level segments of the local automotive market.</p> <p>"There's a massive battle playing out in the sub-$70,000 bracket where so many brands, both existing and new, are clambering to dominate that segment," he said.</p> <p>Australia's high-end electric car market was restrained by the 33 per cent tax on high-end cars and greater competition could be unlocked if the federal government removed it, he said.</p> <p>"The luxury car tax that applies to electric vehicles doesn't make sense," Mr Maynard said.</p> <p>"It's an archaic tax that was brought in to support a car industry that we no longer have and to see the abolishment of that would be a great step towards encouraging electric vehicle sales in the country."</p> <p>The luxury car tax also came under scrutiny at a recent Transition to Electric Vehicles inquiry hearing, which heard claims from the Australian Automotive Dealer Association that some manufacturers were reluctant to import high-end electric cars to Australia due to the tax.</p> </body>