What is the cheapest electric car in Australia?

If you’ve been considering the switch to an electric car but want to do so in the cheapest way possible, you’ve probably thrown ‘Australia’s cheapest EV’ into your favourite internet search engine more than a few times in recent months.

It’s a great question, but one that’s unfortunately not as straightforward as it sounds.

If you had the MG ZS EV as your answer, which arrived as Australia’s most affordable electric car back in 2020, you’re on the money. Well, sort of.

There’s a new competitor now available, the 2022 BYD Atto 3, which just like the MG is a small SUV from a Chinese brand.

And it, too, can lay claim to being Australia’s cheapest EV.

So, which is the most affordable? That depends on where you live in Australia…

Most car-makers list their new vehicles with a manufacturer’s recommended retail price, which doesn’t include on-road costs such as dealer delivery charges, stamp duty, registration, compulsory third-party insurance, and so on.

Adding up the on-road costs gives you the drive-away price for a new vehicle, which can vary between brands, the state or territory in which the car is purchased and even individual dealerships in neighbouring suburbs.

Some brands also now offer national drive-away prices that are fixed no matter where you live and which dealer you buy through, and in the case of the updated 2022 MG ZS EV – which is just about to enter showrooms – that price is $46,990 drive-away for the entry-level Excite model.

There’s also a higher-spec Essence model that’s priced at $49,990 drive-away.

With the just-launched 2022 BYD Atto 3, the entry-level Standard Range (SR) model is priced at $44,381 plus on-road costs. There’s also an Extended Range (ER) version listed at $47,381 plus ORCs.

Using BYD Australia’s online car configurator, which calculates the drive-away price depending on where you live, we can see that in some locations the Atto 3 is cheaper than the MG ZS EV. But only in certain parts of the country.

See below for a full pricing table, but suffice to say if you live in Tasmania, you can get onto the road in a new BYD Atto 3 Standard Range for $44,980.92 drive-away.

However, if you live in WA, you’ll find the same car priced at $47,935. Victorian BYD buyers will also pay more than MG EV buyers, with the Atto 3 price coming in at $47,049.75.

Other states and territories see the BYD slot in under the MG marker.

When considering your rock-bottom line, it will also pay to factor in the subsidies and other incentives such as tax breaks available in most states and territories.

Click on our national EV incentives guide here, but in some of the biggest states (NSW, Victoria, Queensland and South Australia) you’ll find $3000 rebates.

The other main incentives focus on stamp duty and registration – either full exemptions or discounts.

It’s worth mentioning that if you want an exterior paint colour in anything other than a solid black or white – for either the BYD or the MG – both brands charge $700 for a choice of three metallic hues: red, blue, or silver.

And once you hit the road in either electric car, there will be significantly different costs involved with each in terms of ownership.

In particular, these concern running costs such as recharging, servicing, replacement tyres, insurance and registration, plus the single biggest cost involved with purchasing a new car – depreciation.

Again, we’ve done the hard work for you in this area, not just for the BYD Atto 3 and MG ZS EV but for many of the most affordable electric cars available on the market.

But for all the details on cost of ownership (and much more), you’ll have to check out carsales’ Best Electric Car 2022 mega-test, which goes live on Friday, September 9 – World EV Day.

For the record, MG covers the ZS EV with a seven-year/unlimited-kilometre warranty (including the battery), while BYD covers the Atto 3 for six years/150,000km in the case of the car, while the battery is longer at eight years/160,000km.

Strangely, the BYD’s infotainment system is only covered for four years/100,000km.

How much does the 2022 MG ZS EV cost?
Nationwide – $46,990 (Excite), $49,990 (Essence)

How much does the 2022 BYD Atto 3 cost?
TAS – $44,980.92 (SR), $47,980.92 (ER)
NT – $45,027.65 (SR), $48,027.65 (ER)
ACT – $45,155.55 (SR) $48,155.55 (ER)
NSW – $45,405.92 (SR), $48,405.92 (ER)
QLD – $46,001.20 (SR), $49,061.20 (ER)
SA – $46,810.99 (SR), $49,930.99 (ER)
VIC – $47,049.75 (SR), $50,175.75 (ER)
WA – $47,935 (SR), $51,343.60 (ER)
*All prices are drive-away, correct at time of publication and do not include EV subsidies.