For years, the idea of owning an electric vehicle in Australia felt aspirational rather than attainable. Slick marketing, futuristic showrooms and a few celebrity endorsements made EVs look desirable – but the price tags often put them out of reach for many buyers. Fast forward to 2025 and the market has shifted. Compact, well-equipped EVs for under $40,000 (before on-road costs) are now a realistic option for everyday motorists right across the country.

Why? Competition from established and new brands, falling battery costs and wider consumer acceptance have combined to make affordable EVs a genuine proposition. But with more choice comes more questions: Which model suits your commute? Which one charges fastest on a long run? How will battery chemistry affect ownership? This guide cuts through the noise and presents the standout sub-$40k contenders in Australia today, what they offer in real-world terms, and the practical factors every buyer should weigh up.

The contenders: three value-focused EVs

Three models have emerged as the most talked-about options in the under-$40k segment. Each occupies a slightly different niche – from driver engagement to tech features to urban style. Below is a practical look at what each brings to the table, and where they might fall short depending on your needs.

MG4 Excite 51 – for drivers who want engagement

Why it matters: The MG4 has stood out as the most driver-centric option in this price band. If you prioritise handling and a dynamic feel, it’s the rare affordable EV with a rear-wheel-drive layout that translates to sharper turn-in and a more planted feel on twisty roads.

What you get (approximate figures, 2025 market):

• Price: around $38,990 plus on-road costs (varies by dealer and offers).
• Battery: 51 kWh (LFP chemistry).
• Range (WLTP): up to roughly 350 km.
• DC fast charging peak: up to about 88 kW (real-world charge times vary).
• Safety: ANCAP 5-star rating (where tested).

Strengths: Engaging driving dynamics, minimalist but usable interior with a 10.25-inch touchscreen and smartphone integration, competitive safety kit for the class.

Considerations: The 51 kWh capacity is competent for city and weekday commutes, but long interstate trips will need planning. Charging peak is higher than some rivals, but pack size still limits absolute range.

BYD Dolphin Dynamic – the tech-packed all-rounder

Why it matters: BYD’s Dolphin offers a surprising amount of equipment for the money. It’s aimed at buyers who want convenience, creature comforts and modern tech rather than outright sportiness.

What you get (approximate figures, 2025 market):

• Price: around $38,890 plus on-road costs.
• Battery: about 44.9 kWh (BYD’s LFP “Blade” pack).
• Range (WLTP): up to roughly 340 km.
• DC fast charging peak: around 60 kW.
• Safety: ANCAP 5-star rating (where tested).
• Notable feature: Vehicle-to-Load (V2L) capability for powering small appliances.

Strengths: High perceived value thanks to large infotainment screens, sunroof and safety tech as standard. The V2L feature adds real-world utility for camping, work sites or emergency power.

Considerations: Smaller battery and lower peak charge rate versus some rivals mean longer charging stops on long runs. The ride and handling lean toward comfort rather than engagement.

GWM Ora Standard Range – personality and urban practicality

Why it matters: The Ora trades on character. Its retro-inspired styling and quirky interior are designed to appeal to buyers who want a car with personality and strong urban credentials.

What you get (approximate figures, 2025 market):

• Price: from about $35,990 plus on-road costs (often the most competitively priced with drive-away promotions).
• Battery: roughly 48 kWh (LFP chemistry).
• Range (WLTP): up to approximately 310 km.
• DC fast charging peak: around 60 kW.
• Safety: ANCAP 5-star rating (where tested).

Strengths: Distinctive looks, comfortable and well-appointed cabin, compact footprint that’s excellent in inner-city driving and tight parking. Competitive list of driver aids and convenience features.

Considerations: Shorter WLTP range than some rivals and a smaller boot mean it’s best suited to urban owners or small families rather than frequent long-distance touring.

How these models compare in practice

Each of the three cars targets slightly different buyers. The MG4 prioritises driving dynamics; the Dolphin maximises equipment and utility; the Ora focuses on style and urban practicality. Real-world range will be influenced by driving speed, load, climate control use and ambient temperature – so on-paper WLTP figures tend to be optimistic for sustained high-speed travel.

A few cross-cutting notes:

• All three use LFP (lithium iron phosphate) battery chemistry. That’s become the mainstream choice in this price bracket because LFP batteries are robust, less prone to thermal degradation and can handle frequent full charges without as much long-term wear as some higher-energy chemistries.
• Peak DC charge rates remain modest compared with premium EVs. Expect charge-session times that are adequate for normal travel but longer than what you’d get with 150-350 kW-capable cars.
• Safety provision is strong across the trio, with comprehensive driver-assist systems often included as standard.

Why LFP matters for buyers

Lithium iron phosphate batteries have become widespread in affordable EVs for good reasons:

• Durability: They tolerate high charge cycles and frequent 100% charges better than some other chemistries.
• Safety: LFP is intrinsically more thermally stable.
• Cost: Lower raw-material costs help keep the retail price down.

The trade-off is a marginally lower energy density – which is why LFP-equipped cars in this bracket tend to have smaller WLTP ranges than higher-end EVs that use nickel-rich chemistries. For most urban and suburban Australian drivers, the balance of safety, longevity and cost is attractive.

Practical buying considerations in 2025

If you’re in the market for a sub-$40k EV, here are the practical things to weigh up beyond headline specs:

• Total purchase cost: Advertised price is usually before on-road costs (registration, stamp duty, dealer delivery). Always get a drive-away quote.
• Warranty and battery coverage: Compare length of manufacturer warranty and specific battery warranty terms (warranted capacity percentage over time).
• Ownership costs: EVs typically mean lower servicing bills and no fuel costs, but insurance, tyres and possible home-charging installation add to running costs.
• Home charging: A dedicated AC wallbox is the most convenient and often fastest regular charging solution. Installation costs in 2025 vary with house wiring and installer demand – budget several hundred to a few thousand dollars.
• Public charging access: Australia’s fast-charging network continues to grow, with more high-power chargers on major corridors and expanded urban coverage. However, affordable EVs’ charge acceptance limits mean you won’t benefit as much from ultra-high-power chargers as higher-end models do.
• Software and updates: Many manufacturers now push OTA (over-the-air) updates for infotainment and sometimes vehicle control systems. Check how frequently and comprehensively a brand updates their vehicles.
• Real-world range checks: Test any prospective car on a realistic commute that includes your typical traffic, speeds and load to verify it meets your needs.

Charging realities: what to expect

• Home charging is the backbone for sub-$40k EV ownership. Most drivers will plug in overnight and rarely need public DC fast chargers.
• When you do need a public fast charge, expect charging peaks of 60-88 kW depending on the car. That’s fine for adding a useful amount of range on a road trip, but stops will be longer than for cars that accept 150 kW+.
• Charging costs vary by network and time of day. Public high-speed charging can be more expensive than home electricity, so plan stops and compare networks.

Who should buy one of these cars?

• Urban commuters who primarily do short to medium daily trips and can charge at home: excellent candidates.
• Second-car buyers who need a nimble city runabout with occasional longer drives: these models fit well.
• Long-distance drivers who regularly cover big interstate hauls: less ideal unless you’re comfortable with planned charging stops and slightly longer dwell times.

Conclusion

The arrival of genuinely affordable EVs in Australia is one of the automotive market’s most significant developments in recent years. In 2025, the MG4, BYD Dolphin and GWM Ora represent three different but credible routes into electric driving for under $40,000. Each has strengths: the MG4 for driver engagement, the Dolphin for tech and utility, and the Ora for style and urban practicality.

For most Australians, the combination of improving charging infrastructure, practical LFP battery chemistry and competitive pricing means EV ownership is now achievable without major compromise. Your final choice should rest on how you use the car day to day: prioritise range and charge speed if you’re a regular long-distance traveller; prioritise features, space or design if your driving is mostly urban. And always factor in on-road costs, warranty terms and home charger installation when comparing offers.

If you’re still undecided, book test drives, get drive-away quotes and run the numbers for your typical commute. In many cases, a sub-$40k EV will save money over time and deliver a quieter, more refined drive – with the added bonus of lower local emissions. Still tossing up which one fits your life? Got a tricky question about charging or real-world range on your commute? Chuck it at our AI Chatbot, the EV Guru! It’s here to give you instant, personalised advice to help you make the right call.

FAQs

Are these sub-$40k EVs really cheaper than petrol cars overall?

Total cost of ownership varies, but EVs often have lower running and servicing costs. Higher initial outlay is mitigated by cheaper “fuel” (home electricity vs petrol) and fewer regular mechanical services. Always compare drive-away prices, insurance and local registration costs.

How far will these cars go in real-world driving?

Real-world range commonly falls short of WLTP figures when you drive at highway speeds or use climate control heavily. For the models discussed, expect comfortable city and suburban ranges; plan for charging stops on longer, sustained highway trips.

How long will LFP batteries last?

LFP batteries are durable and handle frequent full charges well. Manufacturers typically offer multi-year battery warranties; check warranty terms for guaranteed minimum capacity (for example, many brands warrant a certain percentage of capacity over a set number of years or kilometres).

How much does installing a home charger cost?

Costs depend on the charger type and home electrical setup. A basic single-phase wallbox plus installation might start in the lower thousands of dollars, but complex installs or upgrades to household wiring will increase that. Get quotes from accredited installers.

Can I rely on public fast chargers for long trips?

Yes – public fast chargers are increasingly available across Australia’s main routes. However, the sub-$40k cars’ maximum charge rates are modest, so expect longer stops than you’d get in higher-end EVs that accept very high-power charging.

Are there government rebates or incentives for these cars?

Incentives vary by state and can include rebates, stamp duty concessions or registration benefits. Federal incentives are limited; check the latest state government information and dealer advice before you buy.

About EV Evolution

EV Evolution is the leading online platform dedicated to Australian electric vehicle owners and enthusiasts. We foster a vibrant community, delivering essential EV news and insights, and enhancing user engagement through our innovative, AI-powered chatbot for dynamic discussions. Our mission is to empower Australian electric vehicle owners and enthusiasts by fostering a vibrant, AI-driven online community that connects, informs, and advances the nation’s electric vehicle landscape.