EV buyer’s guide: The cost of electric cars in Australia
While the EV purchase price from your dealership is an important factor to consider, there are other factors to consider when you’re weighing up the cost of electric cars in Australia. Here, we’ll explore some of the models of electric cars in Australia, why it’s important to consider the average cost to charge electric cars and other factors to help you decide if buying an EV is a good option for you.
Electric cars in Australia
The idea of driving an EV in Australia is not new – but the industry in Australia is relatively young compared with other parts of the world. The number of different models of electric vehicles is growing and as the market expands, EV prices could become more affordable.
Here’s a quick look at some of the models of electric cars in Australia available at the moment. Please note, this is for general information – you’ll need to confirm pricing and availability with the manufacturer or your local dealership.
The lower end of the EV purchase price range
Pricing of the MG ZS EV MY 23 starts from around $48,190 (manufacturers recommended driveaway price)* for the Excite model. This is a compact SUV with an advertised driving range of up to 320km.^ This is not the highest EV driving range available in the market, but this model is powered with a 50.3kW/280Nm FWD electric motor. Nm stands for Newton-meter, which is the measure of an engine’s power, similar to revs per minute (RPM) which is often used for other types of engine.
The middle range EV purchase price
The Tesla Model 3 is a popular option for drivers of electric cars in Australia. Currently costing from around $57,400* plus on-road costs for the rear wheel drive model it offers an advertised driving range of 491km and has some serious driving power.^
The higher cost range of EVs
The Audi e-tron GT Quattro MY23 is not for everyone, starting from around $158,211 (manufacturers recommended list price)* plus on-road costs. It’s an all-electric SUV with fast-charging capabilities.^
Electric car prices compared to other types of vehicles
While you can buy many types of internal combustion engine (ICE) vehicles for under $50,000 in Australia, there aren’t as many models available in that price range for electric vehicles. This is partly due to the fact that batteries for electric cars are expensive to produce, which also impacts the EV purchase price.
Here are some of the other reasons electric cars in Australia tend to cost more than ICE vehicles:
- Electric vehicles are made in smaller numbers compared to many mass-produced ICE vehicles models – because of the smaller scale of production this can add to the cost of EVs.
- Some countries in Europe are working towards phasing out ICE vehicles altogether, so many car manufacturers are exploring more EV options to address the growing demand in these countries.
- The rebates and incentives currently offered in Australia for the purchase of EVs are generally less than those offered in other countries and can vary from state to state.
Car manufacturers, like every business, want to turn a profit. This means the cost of batteries, along with the cost of manufacturing and research investment into electric vehicles, is generally passed on to customers in the form of a higher EV price, when compared with ICE vehicles of a similar make and model.
The good news for drivers considering purchasing an electric car in Australia is that more EV models are being introduced. As the industry expands and technology advances, more choice is likely to bring more budget-friendly options for electric vehicles.
The average cost of charging EVs
Don’t let the higher EV purchase price put you off the idea of buying an EV in Australia. When you compare the running costs to those of ICE vehicles, you might find that over time, your EV could be worth the investment.
The average cost to charge an electric car is generally lower than visiting a fuel pump for a regular petrol or diesel top-up. EV charging station costs in Australia vary, but generally the cost is lower than fossil fuels. If you have a solar PV system and charge your EV at home, you could bring down the cost to charge your EV even further by charging during the day when your solar PV system is generating renewably generated electricity. You may also be able to change your electricity plan to a time of use plan such as our Synergy EV Add On# to take advantage of cheaper rates at off-peak electricity times.~
Electric vehicles tend to have lower maintenance costs
Choosing an EV in Australia also means you may have lower maintenance costs when compared to the maintenance of an ICE vehicle. Less moving parts means that the engines of electric vehicles generally don’t need the same kind of maintenance as ICE vehicles. While they still need regular servicing to ensure your EV is in optimum working condition , most fully electric vehicles don’t need to worry about oil and filter changes, timing belts and many other mechanical and often expensive repairs associated with ICE vehicles.
Owning any type of car involves committing to ongoing expenses – including maintenance such as tyre and brake pad replacements, licensing and insurance – but the generally lower maintenance costs of an EV could be worth exploring.
The future of electric cars in Australia
The uptake of electric vehicles around the world is expanding rapidly. The Australian market still has a long way to go before we catch up, but as the number of electric vehicles on the roads grows, charging stations and infrastructure expand and the technology develops further, electric car prices are likely to become more affordable.
Overall, the lifetime costs of an EV, including the environmental costs, are likely to be lower compared to other ICE vehicle options based on a comparison of current costs.
While the cost of EVs is an important factor, there are many other aspects of EV ownership to consider before you invest in one. We've put together a guide to exploring important things to know about electric vehicles to help you make an informed decision about buying an EV.
* Pricing information appearing in this post are as published by the relevant vehicle manufactures for Western Australia as at 6 July 2022. Synergy has no role or responsibility in respect of vehicle pricing. All prices subject to change and provided for convenience only. For up to date recommended manufacture pricing contact vehicle manufacturers.
^ Driving range based on Worldwide Harmonised Light-Duty Vehicles Test Procedure (WLTP) static laboratory combined average city and highway cycle test, which measures, energy consumption, range and emissions in passenger vehicles, designed to provide figures closer to real-world driving behaviour. The WLTP standard can be useful in comparing ranges among electric vehicles. Ranges listed as “estimate” or “est.” Actual driving results and range will vary depending on various factors such as speed, type of journey, environment and elevation, battery age and condition, use of vehicle features, operating, and weather conditions.
# Synergy EV Add On is subject to eligibility criteria, see the Synergy EV Add On Eligibility Criteria for details. The Synergy Standard Electricity Agreement Terms and Conditions apply to the Synergy EV Add On product.
~ The electricity charges during the Super Off Peak, Off Peak and Overnight time periods on Synergy EV Add on are lower than the electricity charge for the Synergy Home Plan (A1) (the regulated residential tariff). The electricity charge during the Peak time period on Synergy EV Add On is however higher than the electricity charge for the Synergy Home Plan (A1) (the regulated residential tariff). Ensure you do your own due diligence when deciding whether changing to Synergy EV Add On would work for your unique circumstances.
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