Australia EV sales: China price war ‘bloodbath’ slams owners

The predicted ‘bloodbath’ in the Australian EV market is happening now and current owners are suffering, new data shows.

As the electric vehicle (EV) market heats up, competition is becoming intense, particularly from Chinese automakers.

This new wave of EVs means that established brands have had to adapt their strategy and offer aggressive new models.

But it’s also ignited a price war between established brands and new entrants.

Earlier this week Mitsubishi CEO Shaun Westcott predicted a “bloodbath” but new data from Thebeep.com.au reveals blood is already being lost with some players slashing prices on EVs.

Thebeep.com.au founder Rob Leigh said the continued price cuts were already destabilising the EV market.

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New data reveals certain players are driving the EV price war. Picture: AFP

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“As newer and more niche brands continue to cut pricing, the EV market is becoming increasingly volatile and it is unclear when it will stabilise,” he said.

EV prices have been steadily falling throughout 2024 but the latest data reveals that lesser-known Chinese brands are aggressively cutting prices, while established automakers are refraining from participation in the price war.

Between January and October 2024, Chinese-built EVs saw an average price drop of 1.4 percent or $1,263.

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The MG4 Excite had the biggest price cut among the Chinese EVs. Picture: MG website

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Although this seems minor, certain models experienced far more dramatic cuts.

For instance, the BYD Atto 3 dropped by 7.1 percent from $50,853 to $47,261 while the GWM Haval saw its price plummet by 25.4 per cent to a staggering $36,990.

The MG4 Excite 51 had the biggest price cut among the Chinese EVs, falling by 26.4 per cent to $30,990.

Leigh said he’s noticing a majority of the price cuts coming from newer Chinese EVs.

“The majority of price movement is coming from newer brands, mostly out of China, while the more traditional brands are trying to focus on maintaining price stability,” he said.

“At some point this is going to become very difficult for them.

European EVs, by comparison, have remianed relatively stable.

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EV prices in Australia are beginning to fall rapidly. Data: thebeep.com.au

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German brands such as Audi, BMW and Mercedes-Benz experienced an average price drop of 5.4 per cent.

BMW led with a 9 per cent reduction, while Porsche prices dipped by just 2.1 per cent.

It’s clear that these established brands do not want to participate in the price war.

The Tesla model 3 had a price reduction of 9.3 per cent from $81,672 to $74,051.

Japanese EVs also saw a drop in price with an average decrease of 9.2 per cent, this may be largely due to Subaru cutting its pricing for the Solterra EV by 8.8 per cent.

South Korean brands, including Genesis, Hyundai and Kia, have keep their average pricing steady with only a 0.9 per cent reduction.

The Peugeot e-2008 had the largest price cut of any model. Picture: Supplied

Interestingly, Hyundai’s price rose by 4.3 per cent, potentially because of more expensive models like the Ioniq 5 N.

However, there is one brand that is resisting participating in the price war - Kia, with a mere 0.3 per cent price reduction across its EV line-up.

The largest price cut of any model came from the Peugeot, which slashed the price of its e-2008 SUV by a staggering 38.9 per cent, from $65,455 to $39,990.

This could be due to the fact its parent company, Inchcape is about to launch two Chinese EV brands - Foton and Deepal.

This graph shows how the resale price of EVs is falling compared to traditional fuel vehicles. Data: iSeeCars

Leigh believes the price cuts could become the “new reality” which could be great for those looking to buy a new car but devastating news for current EV owners.

“On one hand it’s great news for consumers with better access to cheaper EVs, however there remains a big question mark around the impact on residual values and what that means for existing owners,” he said.

Early EV adopters, particularly those who purchased at higher prices, may now find themselves facing disappointing returns when selling their vehicle.

As prices continue to drop, these earlier buyers could experience even further depreciation than anticipated.

*Prices in this article are based on Victorian driveaway prices.

Originally published as Australia EV sales: China price war ‘bloodbath’ slams owners