The next generation of electric vehicles is here, and they cost less than $40,000

August 11, 2023

The new MG4 all- electric car is unveiled at the Fully Charged Live convention at the ICC Sydney Theatre in Sydney, Friday, March 10, 2023. Source: AAP Image/Bianca De Marchi

One of three electric vehicles priced at less than $40,000 will arrive in Australian dealerships this week in a move its manufacturer promises will be a game-changer for the adoption of the technology.

And MG said the company was confident it would sell at least 3000 electric hatchbacks in the country this year, making the vehicle one of Australia’s top-selling electric cars.

The MG4, with its entry model costing $38,990, will be the second-cheapest electric vehicle on the market, at $100 more than the BYD Dolphin that is due to arrive within weeks.

The GWM Ora, which had its price cut to $39,990 in July, is already in dealerships.

MG Motor Australia and New Zealand chief executive Peter Ciao said the company had cut back its profit margin on the MG4 hatchback to make greener vehicles available to a new audience.

“We want a big change in this market,” Ciao said.

“If you were originally planning to buy (a petrol car), you can now get pure electric.”

The MG4, which received a five-star ANCAP safety rating on August 3, features five driving modes, regenerative braking, adaptive cruise control, a 10.25-inch touchscreen, and a seven-year warranty.

The battery range for its entry model is rated at 350 kilometres per charge.

MG sales director Kim Nguyen said the brand expected to sell more than 3000 hatchbacks in Australia in five months.

“This is a game-changer,” she said.

“We are confident we help over 3000 customers get behind the wheel of MG4 by the end of this year.”

The Electric Vehicle Council estimates 130,000 battery-powered cars are in use in Australia, with the figure forecast to reach 180,000 by the end of the year.

Electric cars made up 8.4% of all new vehicle sales between January and June this year, more than double the figure from 2022.

But MG product manager Kevin Kou said Australia still had a long way to go to catch up to electric vehicle sales in European countries, China, the United Kingdom or the United States, and Australia’s National Electric Vehicle Strategy had identified high prices as one of the challenges holding back progress.

“With aggressive pricing, we can help further the adoption of electric vehicles,” he said.

“Price accessibility means a faster transition to a sustainable future with zero tailpipe emissions, quieter streets, healthier neighbourhoods and, for those with solar power, better energy independence.”

This article was first published by AAP.