Best Electric Cars Under $40,000 in Australia

Australia’s affordable electric-car market is expanding quickly, giving buyers more choice than ever at the lower end of the EV segment. This guide brings together a broad selection of compact hatchbacks, city-focused models and practical SUVs, including established offerings and several newer arrivals expected around late 2025 and early 2026.

The smallest options prioritise urban usability and accessible pricing. The BYD Atto 1 is positioned beneath the Dolphin in the brand’s range, while the Hyundai Inster combines a compact footprint with a surprisingly adaptable four-seat cabin. The BYD Dolphin and GWM Ora take a more conventional hatchback approach, pairing manageable dimensions with useful boot space, contemporary infotainment and driving ranges suited to everyday commuting.

Buyers wanting SUV practicality have several alternatives. The BYD Atto 2, Chery E5 and Leapmotor B10 bring raised body styles, flexible cargo areas and longer advertised ranges than many small hatchbacks. The Chery E5 is listed with a 61.1kWh battery and a claimed 430km range, while the Leapmotor B10 offers up to 516km depending on specification. These models demonstrate how quickly battery capacity and interior packaging are improving in the more affordable part of the market.

The BYD Atto 3 and MG S5 EV provide larger, more family-oriented packages. Both offer substantial cargo capacity and five-star ANCAP ratings based on the testing information in the guide. The Atto 3 remains a well-established affordable electric SUV, while the S5 EV is positioned as a midsize alternative with a spacious cabin and an advertised range of up to 425km.

The MG 4 adds variety through a wide model range, from its entry version through to long-range and performance variants. Its hatchback body provides useful interior and cargo space without the external dimensions of a larger SUV. At the top end of the group, the Geely EX5 offers a midsize SUV layout, a spacious second row and up to 430km of advertised range, although the article notes that Apple CarPlay and Android Auto are not currently supported.

• Compact hatchbacks such as the BYD Dolphin, GWM Ora and Hyundai Inster suit buyers focused on manoeuvrability and urban driving.
• Models including the Chery E5, Leapmotor B10 and BYD Atto 3 combine electric power with SUV-style practicality.
• Advertised driving ranges across the vehicles vary substantially by battery and variant, from around 220km to 530km.
• Battery chemistry includes lithium iron phosphate and nickel-manganese-cobalt configurations, depending on the model.
• ANCAP ratings vary across the group, with some newer models still listed as unrated.

Range figures, equipment, pricing and warranty coverage differ between variants and can change as manufacturers update their Australian line-ups. The guide is therefore best used as a starting point for comparing vehicle size, practicality, technology and advertised electric range rather than as the specification of one particular vehicle.