BYD slashes EV prices in Australia, sparking fresh price competition despite Beijing warning

BYD announced a new drive-away price of $19,990 for its Atto 1 electric hatch, matching the MG 3 as the cheapest new car on Australian showroom floors, and set the Atto 2 plug-in hybrid at $24,990, now the lowest-cost PHEV, replacing the former Sealion 5. The reductions come after Chinese authorities issued September guidelines urging state-linked automakers to avoid "improper" price wars in overseas markets. Chery Australia continues to price the Tiggo 4 SUV at $22,490, while Great Wall Motors promotes the Cannon Hi4-T PHEV at $47,990 for business buyers, and Mahindra’s XUV 3XO shares that promotional price.

Industry voices, including Chery’s chief commercial officer Roy Muñoz and Pitcher Partners partner Steven Bragg, caution that sustained discounting could erode margins, depress resale values, and strain dealer and service infrastructure. Despite lower prices, August 2026 saw a rise in new-car purchases, with electric vehicles capturing 24.9 % of sales, overtaking petrol models for the first time. The price competition underscores the tension between Chinese manufacturers’ export ambitions and the need for stable market dynamics abroad.