An EV is Australia's cheapest new car for the first time

The BYD Atto 1 Essential was already Australia's cheapest electric vehicle (EV), and now it's Australia's cheapest new vehicle, full stop.

The light hatchback’s base price has been slashed to just $19,990 drive-away as part of a special offer, which is currently set to end on December 15, 2026 unless BYD extends it.

It was previously priced at $23,990 before on-road costs, equating to a drive-away price of $26,993 based on a Sydney postcode.

The new drive-away price sees it match the sticker of the petrol-powered MG 3 Vibe, which is being offered for $19,990 drive-away until September 30, 2026. Both well and truly undercut the smaller Kia Picanto Sport manual micro-hatch, which is priced at $19,190 before on-road costs, equalling a drive-away price north of $22,000.

"At a time when Australian families are carefully considering every household expense, we're committed to making vehicle ownership more attainable," said BYD Australia chief operating officer Stephen Collins in a press release.

"The BYD Atto 1 at $19,990 drive-away demonstrates our commitment to delivering outstanding value without compromising on technology, safety or quality.”

Metallic paint remains a $500 option.

The Atto 1 Essential has a 30kWh lithium iron phosphate (LFP) battery powering a 65kW/175Nm front-mounted electric motor, with total WLTP range of 220km and a maximum DC fast-charge rate of 65kW.

Standard equipment includes:

• 15-inch steel wheels in 175/65 R15 Hankook tyres
• Automatic halogen headlights
• Keyless entry and start
• 7.0-inch digital instrument cluster
• 10.1-inch touchscreen infotainment system
• Wireless and wired Apple CarPlay, Android Auto
• Leatherette seat upholstery
• Leatherette-wrapped steering wheel with two-way steering column adjustment
• Adaptive cruise control
• Autonomous emergency braking
• Lane-keep assist
• Traffic sign recognition
• Front, front-side and curtain airbags
• Reversing camera and rear parking sensors

The Atto 1 Premium remains available for $27,990 before on-roads, bringing more equipment plus a larger battery offering more range and a more powerful electric motor.

The number of competitors for the BYD Atto 1 has grown since its local launch late in 2025.

The Geely EX2 arrived this year, priced from $26,490 before on-roads. It's been joined by the MG 4 EV Urban, which was launched here at $31,990 drive-away – matching the GAC Aion UT – but is currently being offered for $29,990 drive-away. Chery is also expected to throw its hat into the budget EV ring with the Q hatch in 2027.

BYD has delivered 3838 Atto 1s so far this year. Despite its bargain basement pricing, it's outsold by the pricier Atto 2 small SUV by more than two-to-one.

The Chinese brand, which is currently number-two in the charts year-to-date behind only Toyota, has been massively expanding its local lineup.

Over the past 12 months, it has added not only the Atto 1 and Atto 2 but also the Sealion 5, Seal 6 and Sealion 8 plug-in hybrids (PHEVs).

Next month, it'll add a PHEV version of the Atto 2, plus the M9 PHEV people mover.

It has been rapidly expanding its retail network in tandem with this huge lineup expansion, boasting it has opened on average one new sales and service centre per week since last October with an emphasis on regional and rural locations.

By the end of 2027, BYD plans to have more than 150 dealerships nationwide.

MORE: Explore the BYD Atto 1 showroom