EV price increases not related to incentives

MAINSTREAM electric vehicle manufacturers have shunned suggestions that recent price increases of their EVs are in response to the numerous incentives being announced by a growing number of state governments. 

Prices of the Hyundai Ioniq (all versions) and MG ZS EV have risen by $1000 this month, although both brands told GoAuto these increases had been in the pipeline for months.

“The Ioniq price rise was planned several months ago and had nothing to do with the NSW EV strategy. It was model-related, not EV-related,” Hyundai Motor Company Australia (HMCA) corporate communications general manager Bill Thomas said.

“The timing of the Ioniq price rise was a little unfortunate, granted, but it had nothing to do with the new incentives. 

“Note that Kona EV qualifies for the NSW Government grant, but its price has remained unchanged – hopefully that serves as a further indicator of the fact that the price rise is unrelated to the policy.”

For reference, HMCA’s Ioniq line-up now starts from $41,390 plus on-road costs for the base Hybrid Premium and stretches up to $54,010 for the flagship Electric Premium.

A spokesperson for MG Motor Australia had a similar response, telling GoAuto the “incremental price changes” applied to the ZS EV – and HS PHEV – were in response to increasing material and shipping costs.

“MG works hard to give Australian new car buyers the best value possible. However, increased material costs underpinned our decision to amend pricing,” the spokesperson said.

“Discussions around price amendments started well before the announcement of governmental incentives for electric vehicle purchases.”

While not directly cited as a reason for the increased $44,990 driveaway asking price, the ZS EV has been brought into line with the rest of the local MG portfolio in being covered by a seven-year/unlimited kilometre warranty, including its battery packs, while the service intervals have been stretched to 24 months/20,000km.

On the other side of the coin, EV specialist Tesla is bucking the trend and reducing the cost of some of its vehicles, especially the entry-level Model 3 Range Plus that can now be had from $59,990 plus on-road costs but before state government incentives.

While the other brands mentioned have upped their prices, the Model 3’s sticker price is now between $2000 and $9158 lower – depending on the variant – than at the end of the last financial year.

After prices peaked in July 2020, this is the third time in 12 months Tesla has sharpened its pencil with the Model 3, of which two variants now qualify for the NSW state government’s new EV incentive plan. Tesla now sources the Model 3 for Australia from China.

For the uninitiated, the NSW government will be waiving the stamp duty on battery-electric and fuel-cell electric vehicles priced under $78,000 and purchased after September 1, with a $3000 rebate to be offered on the first 25,000 private purchases of eligible EVs under $68,750.

Victoria has a similar system in place, offering 4000 rebates of $3000 (but no waived stamp duty) on new EVs purchased for less than $68,740.

Tasmania and Queensland each have their own EV incentives too, primarily revolving around waived or reduced stamp duty while the ACT goes a few steps further in both waiving the stamp duty and offering two years’ worth of free registration.