Is Now a Good Time to Buy an EV in Australia?

Key Facts Panel

• What just happened: EVs from BYD and MG claimed all five of the most searched car spots on RACV Car Match over the past five months, according to RACV's own data

• The most searched vehicle overall: the BYD Atto 2, starting from just under $36,244 drive away

• What's driving it: Australia's temporary fuel excise reduction ended on August 3, 2026, coinciding with an indexed rate increase of 17.1 cents per litre, with some retailers pushing prices up further still

• The affordability shift: Australia now has 12 EVs priced under $40,000, with the cheapest, the BYD Atto 1, starting from $23,990 before on road costs

• Running cost gap: charging an EV at home typically costs a fraction of the equivalent petrol spend per kilometre, even at standard, non-off-peak electricity rates

• Do this: if rising petrol prices are the main reason you're considering an EV, run the actual numbers for your own driving distance before assuming the switch pays off immediately, the savings are real but they scale with how much you drive.

• Don't do this: buy an EV purely because search interest is high and everyone else seems to be looking. Base the decision on your own budget, charging access and driving pattern first.

If petrol prices have got you looking at EVs more seriously lately, you're not alone.

New data shows affordable electric vehicles have just claimed every one of the top five spots on Australia's most searched new cars list, and it's not a coincidence.

Here's what's actually driving that shift, and whether it genuinely makes this a good time to buy.

Why EV Searches Just Spiked

The timing here isn't subtle. Australia's temporary fuel excise relief ended on August 3, 2026, and the indexed rate immediately jumped by 17.1 cents per litre, with some retailers adding further increases on top.

RACV's own Car Match data shows that shift lining up directly with a surge in EV search interest, specifically for affordable models rather than premium ones.

Notably, Australia's actual best selling EV, the Tesla Model Y, didn't feature in RACV's top five most searched list at all. Neither did several other strong sellers like the BYD Sealion 7, Geely EX5, Jaecoo J5 or Zeekr 7X.

What topped the list instead were genuinely affordable options, led by the BYD Atto 2 at around $36,244 drive away.

That's a meaningful signal: people reacting to petrol prices are searching with a budget ceiling in mind, not chasing the flashiest EV on the market.

The Affordability Picture Has Genuinely Changed

So, Is now a good time to buy an EV in Australia? Petrol excise relief just ended and EV searches are spiking. Here's the honest answer.This search spike is landing at a point where the EV market itself has shifted meaningfully. Australia now has 12 electric vehicles priced under $40,000, something that simply wasn't true a year or two ago.

The cheapest, the BYD Atto 1, starts from $23,990 before on road costs, putting it in direct competition with petrol hatchbacks rather than other EVs.

That combination, rising petrol prices and falling EV entry prices, is the real story behind the search data, not a single dramatic event but two trend lines crossing at the same time.

Some of the Cheapest EVs on Sale Right Now

Model	Price (before on road costs)
BYD Atto 1	$23,990
Geely EX2	$26,490
BYD Dolphin	$29,990
BYD Atto 2	$31,990
MG4 Urban	$31,990
GAC Aion UT	$31,990

These figures are before on road costs, so add registration and stamp duty for your actual drive away price, and note that pricing in this segment moves quickly as new brands compete hard on entry cost.

Is now a good time to buy an EV in Australia?

The answer depends on your own driving pattern more than the headlines. If you drive a meaningful weekly distance and can charge at home, even at standard electricity rates, the running cost gap between electricity and petrol is substantial enough that a budget EV can genuinely pay back its price premium over petrol equivalents within a few years, sometimes faster if petrol prices keep climbing.

If you drive infrequently, don't have reliable home charging access, or your budget is genuinely tight even at $23,990 entry pricing, the calculation is less clear cut, and it's worth working through the actual numbers for your situation rather than reacting to a search trend or a fuel excise headline alone.

What's true right now is that the range of viable, well priced options has never been wider. Whichever way the maths lands for you personally, you're choosing from a genuinely different market than even twelve months ago.

Buy or Avoid: The Verdict

Buy now if: you drive a solid weekly distance, you can charge at home, and rising petrol prices have been a real, ongoing cost for you rather than a passing frustration, the current wave of sub $40,000 EVs makes the switch more accessible than it's ever been.

Hold off if: you drive infrequently, can't charge reliably at home, or you're being swept up in search trend momentum rather than your own genuine numbers, take the time to run your own cost comparison before committing.

FAQs

Why are EV searches spiking in Australia right now? Australia's temporary fuel excise relief ended on August 3, 2026, triggering a 17.1 cent per litre indexed increase, which coincided with EVs from BYD and MG claiming all five of the most searched new car spots on RACV Car Match.

What's the cheapest EV in Australia right now? The BYD Atto 1, starting from $23,990 before on road costs, is currently Australia's cheapest new electric vehicle.

Is it actually cheaper to run an EV than a petrol car right now? Generally yes, charging at home typically costs a fraction of the equivalent petrol spend per kilometre, though the exact savings depend on your electricity rate, driving distance and whether you can charge at home reliably.

How many EVs are now available under $40,000 in Australia? There are currently 12 EVs priced under $40,000 in Australia, a significant increase driven largely by new and expanding Chinese brands.