For the better part of a decade, the Australian automotive landscape has been defined by a frustrating “EV tax”—an unwritten rule that if you wanted to ditch the pump, you’d have to cough up at least $50,000 for the privilege. But as we settle into 2026, that ceiling hasn’t just been lowered; it’s been absolutely shattered.

The arrival of the BYD Atto 1 has sent shockwaves through the local market, officially bringing the entry price of electric motoring down to $23,990 (plus on-road costs).¹ This isn’t just a win for the environment; it’s a win for the hip pocket. For the first time, a brand-new electric hatch is cheaper than a high-spec petrol Toyota Yaris or MG3.

However, “cheap” shouldn’t mean “compromised.” If you’re looking to spend under $40,000 in 2026, you’re no longer limited to used cars with degraded batteries. You have three genuine, heavy-hitting contenders: the BYD Atto 1, the MG4 Excite 51, and the GWM Ora.

But which one deserves your hard-earned “dollarydoos”? Let’s get under the skin of Australia’s budget-beaters.

The Disruptor: BYD Atto 1 (Essential)

Price: From $23,990 (+ORC) | ~$25,870 Drive-away2

The Vibe: The ultimate suburban runabout.

The Atto 1 is the car that finally silenced the “EVs are too expensive” crowd. It is a compact, four-seat city hatch that prioritises urban agility over interstate touring.³

• The Hardware: You get a 30kWh “Blade” battery (BYD’s ultra-safe LFP tech) paired with a 65kW front-mounted motor.⁴
• The Range: Expect a real-world WLTP range of 220km.⁵
• The Drive: It’s no rocket ship, with a 0-100km/h time of 11.1 seconds, but in the stop-start traffic of Sydney or Melbourne, its instant torque makes it feel zippier than the numbers suggest.⁶

The Informed Verdict: The Atto 1 is perfect as a second car or a dedicated commuter. However, with a 65kW DC charging cap, it’s not the car you’d want for a dash from Brisbane to Byron. It’s designed to be charged at home overnight on a standard 240V plug or a 7kW wallbox.

The Driver’s Choice: MG4 Excite 51

Price: ~$34,990 – $37,990 Drive-away (Model Year 2025/26)

The Vibe: The “hot hatch” of the budget world.

If you care about how a car handles, the MG4 remains the gold standard in this price bracket. Unlike its front-wheel-drive rivals, the MG4 is Rear-Wheel Drive (RWD) with a 50:50 weight distribution.⁷

• The Hardware: A 51kWh battery and a 125kW motor.⁸
• The Range: A very respectable 350km (WLTP).⁹
• The Drive: It’s genuinely fun. The steering is sharp, and the RWD setup means you don’t get the “torque steer” (tugging at the wheel) that can plague cheaper front-drive EVs.

The Informed Verdict: The MG4 is the most “complete” car here. With 88kW DC fast-charging, it handles highway trips far better than the BYD. The only trade-off? The interior is a bit more minimalist (some might say “plasticky”) compared to the plushness of the GWM.

The Value King: GWM Ora (Lux)

Price: ~$34,490 – $35,990 Drive-away

The Vibe: Premium tech in a retro-chic package.

The GWM Ora has seen significant updates for 2026.¹⁰ GWM has streamlined the range and boosted the battery tech, making the “Lux” trim a formidable value proposition.¹¹

• The Hardware: A new 57.7kWh LFP battery and a 126kW motor.¹²
• The Range: The standout stat here is the 400km WLTP range.
• The Tech: It feels the most “expensive” inside, with dual 10.25-inch screens, a 360-degree camera as standard, and a suite of active safety tech that earned it a 5-star ANCAP rating.¹³

The Informed Verdict: If you need the most range for every dollar spent, the Ora wins. The 400km range makes it a viable primary vehicle for many families. The quirky, retro styling isn’t for everyone, but the build quality is surprisingly high for the price.

Head-to-Head: The 2026 Australia’s Cheapest EVs Budget Breakdown

Looking Beyond the Sticker Price

At EV Evolution, we always tell our readers: The purchase price is just the beginning. To make a truly informed decision, you need to look at the Total Cost of Ownership (TCO).

1. FBT Exemption: Remember, if you are a PAYG employee, these cars are all exempt from Fringe Benefits Tax (FBT) under a novated lease. This can effectively reduce your “real” monthly cost by 30-40%.
2. Servicing: MG offers 24-month service intervals, while BYD and GWM stick to 12 months.¹⁴ Over five years, the MG4 might actually save you a few hundred extra on maintenance.
3. Resale Value: 2026 is seeing a flood of cheap EVs.¹⁵ To protect your resale value, look for models with the longest warranties (MG) or the most “safety tech” (GWM).

Final Verdict

• Buy the BYD Atto 1 if: You need a secondary car for the school run and local shops, and you want to keep your entry cost as low as humanly possible.
• Buy the MG4 Excite 51 if: You love driving, you occasionally head out on the highway, and you want the peace of mind of a 10-year warranty.
• Buy the GWM Ora if: You want the longest range for your money and a cabin that feels more like a luxury car than a budget hatch.

🤖 Confused by the 2026 price drops? Let our AI do the math.

With “Summer Savings” deals and varying state incentives, the “drive-away” price can change between Melbourne, Perth, and Sydney. Don’t rely on old brochures—get real-time data.

Get your personalised purchase breakdown in seconds.

Our EV Evolution AI has the latest 2026 dealer pricing and state-specific rebate data loaded and ready.

You can also ask:

• “Which of these three has the cheapest capped-price servicing over 5 years?”
• “Does the BYD Atto 1 Essential have enough range for a 40km daily commute with only weekend charging?”
• “Compare the safety features of the 2026 GWM Ora vs the MG4.”

Chat with the EV Evolution AI now and take the guesswork out of your first (or next) EV purchase.

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.