GM launches $6700 EV

Electric vehicles have struggled to gain a foothold in the Australian market for two major reasons -- range and price.

But what if you could buy a short-range EV to dash to the shops or across town for less than $7000, brand-new from the showroom floor? Imagine never having to visit a petrol station again, instead just charging up at home or work?

Well, sadly, Aussies and anyone else outside of China don't have access to a $7000 EV just yet, but that's exactly what Holden's parent company General Motors has done in the world's most populous nation.

Priced at around $US5300 ($A6700) in China after EV subsidies are factored in, the new Baojun E100 is two-seat, battery-powered micro-car with a 7.0-inch touch-screen infotainment system, electric park brake, electric windows and WiFi connectivity.

Options will include things like keyless entry, a touchpad interface and air filtration system.

The cruising range isn't up there with Tesla cars but for a fraction of the price the 155km range and seven-hour charging time represent excellent value for money. Top speed is 100km/h so it can be a highway cruiser – just.

It's unlikely this car would ever be sold in mature markets like Australia because of its basic construction and expected lack of safety features, but Baojun – GM's Chinese joint-venture partner – says it already has 5000 orders for the vehicle, easily accounting for the first batch of vehicles.

The new LEAF will be offered with more than one battery specification, the long-range version expected to have a 550km range, and an even greater number of Australian-manufactured parts.

That means a potential entry-level model could represent the first truly affordable EV in Australia, where the previous LEAF was last sold at around $40,000.

Of course there is also the Tesla Model 3, which is being spruiked as another affordable EV. It is expected to start at $50,000 in Australia and therefore won't be able to compete with the LEAF on price.

It's also a couple of years away, with an estimated Australian introduction in 2019.

There is plenty of movement on the affordable EV horizon and although a sub-$10,000 battery electric vehicle is still a pipe-dream for Australians, it's clear the market is moving in this direction.