BYD Atto 1 is Australia's cheapest new car

An electric car is now the cheapest new vehicle on sale in Australia. BYD has cut the Atto 1 Essential to $19,990 drive-away nationally until December 15, a first for the local market and a milestone nobody predicted arriving this decade.

Indeed, this is not just the cheapest EV, it’s the cheapest new car, full stop.

Hot on the heels of Beijing releasing its 'Guidelines on Overseas Competition and Compliance Construction', telling Chinese car-makers to stop winning export markets on price alone, BYD has made headlines by offering the cheapest new car in Australia.

The BYD Atto 1 Essential is priced under $20,000 drive-away.

For buyers, the maths is simple enough. The Atto 1 Essential normally asks $23,990 before on-road costs, which works out to about $27,000 in the driveway. BYD is absorbing rego, stamp duty and the rest, so the real saving is closer to $7000 than the headline $4000.

That drops it beneath the traditional budget benchmark.

Kia's Picanto Sport manual lists at $19,190 plus on-road costs, the auto at $20,790, the GT-Line auto at $22,590. Once the government takes its cut, the cheapest Picanto clears $22,000 drive-away in several states.

MG is the only other contender at $19,990 drive-away, with its MG3 Vibe, but that deal expires September 30. BYD's runs another two-and-a-half months.

Mechanically, nothing changes for BYD’s cut-price city car.

The Essential uses a 65kW/175Nm front-mounted electric motor and a 30kWh lithium iron phosphate (LFP) Blade battery, good for a claimed 220km WLTP range. The car maxes out at 65kW when DC fast-charging.

Standard kit runs to a 7.0-inch digital instrument display, 10.1-inch touchscreen with wired and wireless Apple CarPlay and Android Auto, keyless entry and start, adaptive cruise control, AEB, lane-keep assist, a rear-view camera and rear parking sensors.

Metallic paint is $500. The BYD Atto 1 Premium stays at $27,990 plus on-road costs.

"At a time when Australian families are carefully considering every household expense, we're committed to making vehicle ownership more attainable," said BYD Australia chief operating officer Stephen Collins.

"The BYD Atto 1 at $19,990 drive-away demonstrates our commitment to delivering outstanding value without compromising on technology, safety or quality," he added.

Australia remains one of the freest markets in the world for Chinese vehicles – no tariffs, no local industry to shield, and buyers keen on the latest tech. Aussies now buy more new cars built in China than anywhere else, Japan included.

Expect the squeeze to continue. Geely's EX2 Complete starts at $26,490 plus on-road costs, and GAC is readying a cheaper 44kWh version of its Aion UT with roughly 320km of WLTP range before year's end.

BYD, meanwhile, has been opening about one sales and service centre a week and expects more than 150 dealerships by December to meet the brand’s booming sales.

For now, the cheapest ticket into a new car in Australia runs on electrons.

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