Tesla and BYD are the biggest players in the electric vehicle (EV) market at the moment in Australia, but an expert has revealed other models that are worthy of consideration. EVs have exploded in popularity across the country and while there are concerns about the availability and reliability of chargers as well as resale value, Aussies are still jumping on the bandwagon in the tens of thousands.
Despite this, some car manufacturers have been knocking down the price of their EVs as the competition heats up Matt Wright, CEO of Cars4us, told Yahoo Finance it might be tempting to go to Tesla and BYD because they’re the big guns, but it pays to shop around.
“Definitely a Japanese brand for Australians… the maintenance costs and the reliance that we all know of here in Australia is around those Japanese and Korean brands,” he said.
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He said when you look at the car market as a whole, not just in EVs, some of the Chinese brands don’t have vehicle parts with “good longevity” and “availability”.
Wright explained that it’s still too early to tell if this is going to be a major problem with the electric vehicle market, but he said Aussies who have bought Chinese petrol, diesel or hybrid models in the past have been stung with high costs and long wait times to get parts replaced or fixed.
“We’ve often bought a car off a consumer with the intention of putting it in our yard, and we’re getting told we have to wait four months for a part that we can only get in China,” he told Yahoo Finance.
Do you have a story? Email stew.perrie@yahooinc.com
“So from a longevity piece, Chinese makes and models definitely don’t seem to offer the same that Japanese ones do.”
He named the Nissan Leaf (Japanese), Kia’s EV6 and Niro (South Korean), and Hyundai’s IONIQ and KONA (South Korean) as some models that should be considered if you’re in the market for an EV.
“Kia and Hyundai are synonymous for longevity, low maintenance costs and price point as well,” he said.
Wright also pointed to Kia’s seven-year warranty, which is the longest and best car warranty in Australia, according to the manufacturer.
As for models to avoid, Wright didn’t point to any particular manufacturer or model, but he told Yahoo Finance buyers should look into every detail to see if they work for them.
‘What a joke’: Hidden detail not included in the end price
Wright said EV buyers should be aware that the car of tomorrow comes with a hidden price tag that isn’t attached to the initial bill.
“EV, owners, for whatever reason, can expect to pay close to 20 per cent more to ensure their car than a petrol car,” he told Yahoo Finance. “The insurance side is something that people definitely need to think of when deciding whether to buy one.”
One EV owner recently took to social media to share his surprise at the staggering price difference to insure his Tesla versus his Kia cars.
Screenshots show that comprehensive insurance for a Tesla would be between $5,073 and $5,175 based on two quotes from different insurers. In comparison, insurance for his Kia was quoted as being between $900 and $1,053.
“What an absolute joke,” he said.
The Insurance Council of Australia (ICA) told Yahoo Finance there were a few factors that played into the higher premiums, like the price of the vehicle, more “complex” systems and components, and the availability of their parts and batteries.
“The cost of these parts and the limited number of qualified service centres and technicians contributes to the higher cost of insurance premiums for EVs than IC vehicles,” a spokesperson for the Council said.
The ICA noted that repairing damaged EVs required importing parts to Australia. Other factors playing into higher premiums included expensive battery replacement costs, which can be between $7,500 and $30,000 or up to 40 per cent of the EV’s total value.
The absence of a local network means most batteries will need to be returned overseas. They also require speciality removal equipment, along with disposal and recycling methods.
Top 10 best-selling electric vehicles from January to June 2024
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Tesla Model Y – 12,516
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Telsa Model 3 – 10,600
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BYD Seal – 4,092
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BYD Atto 3 – 3,726
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MG 4 – 2,771
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BYD Dolphin – 1,248
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BMW iX1 – 1,237
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BMW i4 – 1,177
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Kia EV6 – 1,060
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Volvo EX30 – 1,001
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