BYD, Tesla and MG resume price war as EV prices fall below $35,000 for first time

Electric vehicle prices have fallen below $35,000 for the first time in Australia as brands continue to fight for dominance in the market.

MG issued the latest salvo in a price war on Thursday, unveiling a series of cost cuts on its electric vehicles, including the MG ZS EV that will become the cheapest in Australia at $34,990. The price of the MG4 was also cut.

But the Chinese automaker is not the only brand to cut prices on low-emission vehicles, with BYD and Tesla also offering models at reduced rates.

The price cuts follow a fierce battle between three small electric cars last year and after slower growth in battery-powered vehicles in 2024.

Australia’s third most popular electric car brand, MG, ignited the latest price battle by cutting as much as $3000 from the cost of its MG4 electric hatchback, and by issuing a month-long price cut on its SUV.

The price change, including on-road costs, will make the MG ZS EV the cheapest electric vehicle in Australia to date and is a reduction of up to $8,700 on its earlier price.

MG Motor Australia chief executive officer Peter Ciao said the move was designed to make electric vehicles “attainable” and to encourage more drivers to try the company’s technology.

“MG is putting customers first by ensuring all road users can access a wide range of affordable zero-emission vehicles,” he said.

Rival brand BYD also cut prices on two of its Seal sports cars, with the premium model starting at $55,798, which is $3000 lower than its launch price.

Meanwhile Tesla debuted discounted loans on some Model 3 vehicles for the month of August.

The price cuts come as electric vehicle growth slows in Australia, with sales of new EVs up by 16.5 per cent in the first six months of the year and representing almost eight per cent of all new car sales.

AAP