New Tesla rival Xpeng could see Aussie electric vehicle prices plummet further

A "great" new Chinese electric vehicle set to land down under within months, that some experts say "performs better than a Tesla" and is "comparable to a Porsche", will increase consumer competition and likely result in cheaper EVs for Aussies over time.

Pre-orders for the 2025 Xpeng G6 electric SUV have now opened to Australian motorists, with deliveries due to begin later this year. The G6 sports has near-identical dimensions to the Tesla Model Y, but some argue it's actually more similar to the Porsche Macan or Mercedes-Benz EQE SUV, being on the "higher end" of the scale.

The announcement highlights the fact the Chinese EV market is "unstoppable", an industry expert says, and we can expect to see a whole lot more of them on our roads as time goes on. Speaking to Yahoo News Australia, Swinburne University's urban mobility professor Hussein Dia said many wouldn't consider the new Xpeng model affordable, but it will go a long way in increasing competition among manufacturers, which will in turn drive prices down eventually.

New luxury model to land down under in months

"There isn't really a price set for Australians just yet," Dia told Yahoo. "But in Hong Kong it's selling for around A$60,000. This is similar to some of the cars in that high-end category.

"Now that there is an oversupply of EVs, particularly in China — and Tesla has been dropping prices too — if the arrival of Xpeng sees prices drop 10 or 20 per cent, that's a good outcome for consumers.

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"It's not going to be affordable for most people, but if it's the same price as the Tesla Y Model, it means competition is going to happen, and maybe both cars will come down in price eventually. I think it is really about offering more variety to people. It looks like a great car. But performance is key as well."

As China's prevalence on the market continues to grow, some questioned whether Australia would introduce import tariffs on overseas car manufacturers, as seen recently in Europe. But Dia said it's "unlikely" — and if the government were to do so it would come "as a big surprise".

More variety to increase consumer competition

"It wouldn't be sensible," Dia said. "First of all, we have a trade agreement in place with China. Second, we don't have any local manufacturing. These tariffs in the EU and the US are mainly meant to protect local car manufacturing jobs.

"On the contrary there could be opportunities for Australia to maybe do joint ventures with companies from China, to build factories in Australia... So I would be very surprised, it would be counterproductive to impose any tariffs from our side."

'No stopping' Chinese EVs from landing on Aussie roads

While the Xpeng model might not have the biggest impact on the market immediately, it is a sign of what's to come, Dia said. Australians can expect to see even more electric cars from China being imported down under, "hopefully bringing us up to speed" with Europe and America.

"Chinese brands like the BYD... we will soon start to see more of them. And I think there is no stopping them. Actually, for us, it's a good thing, because we are starting from behind, we need more variety, we need more options, and we need more price range.

"Five years ago, when people went to trade shows, the Chinese vehicles were poor quality. Everyone now says over the past two decades, they have come a long way. They're competing, not only on price, but also on quality. For us, and Australia, it's a good thing."

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