Your questions answered: Are there any cheap EVs coming to Australia?

From V8s and hybrids to the next round of electric cars, this week’s carsales mailbox has it all.

And it’s clear that affordability is at the heart of a lot of readers’ questions.

From saving money on fuel to waiting for the next affordable EV, there’s a focus on keeping prices down.

We’ve also got one reader with a keen interest in the industry brawl taking place over the federal government’s proposed New Vehicle Efficiency Standard (NVES).

Question: In the next year or so I’ll be purchasing what will probably be my last car. I’m open to buying an electric car but at this stage they seem too expensive. Are there cheap ones coming? Will we see more by next year? – Monique

Answer: There’s loads happening in the EV space and plenty of new arrivals due over the next few years. That’s only likely to ramp up with the government’s proposed introduction of CO2 emissions regulations in 2025.

As for cheap EVs, it probably depends on your definition of cheap. There are already three EVs hovering around the $40,000 mark: GWM Ora, BYD Dolphin and MG4.

Each has pros and cons, but it’s the MG4 that we reckon ticks the most boxes. It even picked up our Car of the Year gong in 2023.

There’s also loads more coming. Hyundai is one that is believed to be readying an EV in the circa-$35,000 space, while BYD is also working on a more affordable model to slot below the Dolphin. See our recent review of the BYD Dolphin Mini.

Keep in mind, too, that existing petrol-powered alternatives are steadily increasingly in price. The Mazda2 is no longer the cheapy it once was and only this week Toyota dropped the most affordable versions of its already-pricey Yaris to now make it hybrid only – and about $5000 more expensive.

Obviously, there are significant fuel savings going with the hybrid that will pay back over time with reduced running costs, something that also goes with an EV.

The other unknown here is what impact those fuel efficiency standards will have. Car-makers such as Toyota, Hyundai and Kia will be desperate to bring in more EVs so they can use them to offset the emissions of some of their thirstier models. That could mean sharper pricing and more competition.

So, yes, the short story is we’d expect some more affordable EVs over the next couple of years.

Question:

Answer: Premium unleaded in Australia has to meet guidelines for lower sulphur levels in the fuel, one of the reasons some manufacturers stipulate the use of the higher-octane fuel.

And, obviously, the higher octane rating allows the engine to make a tad more power.

In the case of the Patrol, it’s the 298kW of peak power that the manufacturer is trying to look after by recommending premium unleaded.

We contacted Nissan and they sent us a screen shot from the owner’s manual that says: “If unleaded premium gasoline is not used, regular unleaded gasoline with an octane rating of at least 91 (RON) may be used at slightly reduced performance. However for maximum vehicle performance and the best driveability, the use of premium gasoline is recommended.”

So there’s no issue from a warranty or engine health perspective, but you won’t be quite realising the full performance of the engine. You may also notice fuel use increases marginally running on the lesser brew, although you should still come out in front financially.

Question: I’m interested in waiting for the Wilderness version of the Subaru Crosstrek to be released and am curious for any inside industry intel on when that may be? If it is a few years away, would you have any tips on a good “in between” purchase to replace my MY04 Outback (254,000km)? I am leaning towards an XV, am wondering what the best year/model/badge may be to minimise my losses if I was to resell when the Wilderness is released. – Ben

Answer: A more off-road-focused Wilderness version of the Subaru Crosstrek technically isn’t a done deal for Australia yet, although it’s difficult to see it not happening. But we wouldn’t expect any action before 2025 at the earliest.

As for a filler in the meantime, it sounds like you’re a rusted-on Subaru fan, so let’s stay on brand.

A Subaru XV would be a great choice given it’s a nameplate that’s no longer around (obviously replaced by the Crosstrek). As for the year, the heaviest deprecation tends to hit in the early part of a car’s life.

Once you get to three or four years old, things start to level out on the depreciation front.

Obviously buy on condition knowing that you’ll likely be selling it before long. Check out our comprehensive used car report on the Subaru XV, too.

Question:

If I were to upgrade to a newer car, what would be something similar to consider? Not keen on electric or hybrid at the moment and wanting some ideas on what I could get. Would like bigger car, rear-wheel drive and a four-cylinder engine would be ideal. – Matthew

Answer: Getting something bigger than your Ford Falcon could be a challenge given it’s a large sedan with a fair bit of space. Your best bet is a Kia Stinger.

The twin-turbo V6 got the headlines with the Stinger, but there was also an excellent four-cylinder turbo that was overshadowed in the fun-factor stakes.

Those four-cylinder cars are not as desirable on the used car market so could make decent buying now.

Beyond that you’re looking into the luxury car market, although – again – you’ll have to step down in size. A BMW 330i would be a great choice, as would a Lexus IS.

Question: I’m looking to buy a hybrid car but am worried it will soon be old tech that isn’t worth much on the used car market. What is really going to happen with the price of hybrids? Should I be buying one or am I better off looking at an EV? – Andrea

Answer: Hybrid is generally regarded as a stepping stone technology between internal combustion engines and battery-electric vehicles. But it’s a stepping stone tech that’s been getting stronger over a quarter of a century.

And there’s still plenty of life left in hybrid yet.

Hybrid residual values have been strong recently and we can’t imagine anything that will change that in a hurry. Fuel at five dollars a litre? Yep, that could do it, but we don’t imagine that’s about to happen anytime soon.

Of course, there are more EVs these days that are starting to make sense. Most will generally cost more than a hybrid, though, although they should partly pay back with lower running costs.

Part of it will come down to how you plan to use the car. If you can easily charge at home and don’t need to regularly travel 1000km a day then an EV can make plenty of sense.

But, again, a hybrid is right now more affordable tech that also does a terrific job.

Question:

The problem as I see it is the fuel savings argument is completely bogus if there isn’t an apples for apples replacement overseas – and the reality is that for SUVs and passenger cars that may be so, it fundamentally just isn’t for utes and large off-roaders.

So business and consumers that need the equivalent of a double or single cab ‘small’ turbo-diesel ute will just have to suck up the price increases – and the reality is that there’s no obvious market RHD for manufacturers of those vehicles to target other than Australia, so exactly where the pressure is being applied (other than on the consumer and business) is unclear.

One thing I have never understood is the claim that US vehicles are more efficient than their equivalents sold here – looking at common models the engines are usually the same, or the US gets larger, less-efficient petrol engines instead of small diesels – any idea where that claim comes from?

It’s all musings from me as I’m very happy with the lazy old 4.0-litre petrol manual Prado 150 Series – all the car we could ever need for going bush and longer family road trips and they’ll never make another big petrol manual of that class ever again (and being a petrol manual is the only reason we could afford a 150!).

The everyday (and 95-per-cent-plus of the time, if not distance) family car is a 2009 Yaris YRS hatch – manual of course, safety pack special order – bought new, serviced by me since it hit 100,000km and at 200,000km it is flawless in every way except the Caribbean blue paint; Toyota resprayed it all except one door, which is gradually peeling.

Hopefully the Yaris will last us until Toyota does an equivalent electric Yaris – not that I am holding my breath there. – Dougal

Answer: There’s definitely more efficient powertrain options for utes coming – especially petrol-electric hybrid. Don’t take the Toyota i-FORCE as representative. That’s mild hybrid only, effectively a smart alternator.

In other hybrid applications Toyota has managed to halve suburban fuel economy, something that should be achievable with utes, too.

Ford’s PHEV Ranger (due late in 2024) should be an interesting study – although it won’t be cheap. And BYD has promised a hybrid ute in the coming months, followed by an all-electric alternative.

There are also battery-electric utes coming from JAC, LDV, Kia and Hyundai, while the big companies are all planning EV utes.

Ultimately the New Vehicle Efficiency Standard (NVES) due in 2025 will have some unexpected winners and losers. But the battleground will be based on diversity of model offering. Toyota will be fine as long as it continues to champion small hybrid passenger cars and SUVs. It’s brands like Mazda, Ford and Isuzu Ute that will have real challenges – for different reasons.

Because it’s an average fleet efficiency standard that allows manufacturers to offset thirsty vehicles with more efficient alternatives, it relies on having those low – or zero – emissions alternatives.

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