The affordable EVs and rebates that will help drivers escape rising fuel costs

From the groceries we buy at the supermarket to the shirts on our backs, rising energy and fuel costs are impacting the cost of just about everything. But there is one light in the so-called tunnel as various state EV rebates kick in to help drivers escape fuel costs.

And, there are more affordable EVs just around the corner.

Yesterday I filled up my sister’s ICE car which is a relatively new Kia Cerato. 44 litres of unleaded fuel ended up being just over $90. This would normally get her around 500kms.

This got me thinking: what it would have cost to fill up an EV that would get close to that range?

The Hyundai Kona Electric – which starts at $54,500 in its short range format – has a relatively good range. In the long-range model (which starts at $62,000 before on-roads), can get you close to 500kms with its 64kWh battery pack.

Hyundai has sold over 470 of these fairly popular EVs so far in 2022. To fill the long-range up at home would cost under $16 (at 25 cents/kWh). That’s a saving of over $70 compared to filling up the Kia Cerato yesterday.

But, the main barrier to Australians owning these cleaner, cheaper-to-run EVs is still the initial cost to buy them. So what is being done by states and territories around Australia to increase affordability and get more of us behind the wheel of one?

EV subsidies are starting to kick in

Many of us are seeing this rise in fuel prices and are wanting to make the switch to EVs. The Hyundai Kona Electric isn’t exactly in the price bracket that many people spend when they buy a new car. Affordability is key.

Governments around the country have started offering rebates and incentives. Some of them are more generous than others:

• Queensland – $3,000 rebate for vehicles under $58,000 from July 2022
• NSW – $3,000 rebate for vehicles under $68,750 from September 2021
• ACT – $15,000 0% loan for vehicles under $77,565 + 2 year free registration
• Victoria – $3,000 rebate for vehicles under $68,740 from May 2022
• Tasmania – No stamp duty for vehicles for up to 2 years from July 2021
• South Australia – $3,000 rebate for vehicles under $68,750 from 1st July 2022+ 3 year free registration from October 2021
• West Australia – $3,500 rebate for vehicles under $70,000 from May 2022
• Northern Territory – Stamp duty waiver for vehicles under $50,000 from July 2022

Looking at what’s on offer from the states and territories, EVs under $50,000 seem to be eligible for most subsidies around the country. As of the middle of 2022, there aren’t any new EVs that can be purchased that would fit within that criteria but that’s about to change.

Affordable EVs around the corner

I’ve previously written about the need for more affordable EVs for the Australian market if we are going to reduce transport emissions, costs, noise pollution and many other benefits that come from EV ownership.

Things are about to change in the coming months with 2 models launching under the $50,000 price point. This will be great news for those looking at making the switch to EVs this year rather than waiting for fuel prices to continue to rise over the coming years.

BYD Atto 3

The BYD Atto 3 is nearly here with the production of the right-hand drive model commencing shortly. I also have been covering BYD setting new production records and making more pure EVs than ever.

The BYD Atto 3 extended-range model falls under the $50,000 mark and will be eligible for the maximum rebate and incentives currently on offer by state and territory governments.

But compared to the Hyundai Kona Electric, there’s a lot better value for the money.

This model will also get over 400kms of range and is a pure ground-up EV compared to many other EVs on offer.

Similar to the Hyundai Kona Electric, this car has a 60kWh battery pack which costs under $15 (electricity costs of 25 cents/kWh) to charge from empty to full. That’s a lot better than the $90 I just paid yesterday to get a similar range out of a Kia Cerato!

MG ZS EV

The new 2022 MG ZS EV is another model that will launch over the coming months in Australia that would also be eligible for the maximum rebates and incentives on offer.

This is another EV to watch out for as it’s also an SUV – something many family car buyers opt for as their first new car.

MG and BYD’s choice to bring more affordable family SUVs that are eligible for rebates and incentives from the go in 2022 will see their sales to grow over the next 12 months. The more of these affordable EVs that are brought into Australia this year can only be a positive thing for EV uptake in Australia.

This shift will make it easier for more families to experience the benefits of EVs and not having to spend over $90 for fuel every time they fill up. The cost to fill up a tank will only rise when the fuel excise reduction is removed in September this year.

More affordable EVs in Australia arriving this year will only be a good thing and will ease the cost of living pressures. On top of that, it will help us decarbonise transport sooner and tackle climate change.