Hyundai Australia has voiced concerns over how Chinese electric vehicles (EVs) are undercutting the market by tens of thousands of dollars, raising questions about long-term sustainability and potential government subsidies behind these prices.
Don Romano, CEO of Hyundai Australia, says he’s puzzled by how Chinese carmakers are able to deliver such low prices, especially when all manufacturers are using similar components, manufacturing equipment, and supply chains. He speculated that the price gap might be due to Chinese government support, echoing recent European Union and U.S. accusations of unfair subsidies.
While Hyundai does produce some models in China, Romano claims the price advantage is minimal and often offset by distribution costs and shipping logistics. He also warned that such cost advantages are unlikely to last forever, suggesting that global economic forces usually even out over time.
Chinese brands like BYD and Geely are making waves in Australia, offering battery-electric vehicles (BEVs) like the BYD Dolphin from $29,990 — far cheaper than Hyundai’s smallest EV, the Inster, which starts from $39,000. Even the Geely EX5 midsize SUV is priced close to Hyundai’s petrol-powered Tucson, despite being electric.
The European Union recently imposed up to 35.3% tariffs on Chinese EVs, while the U.S. has raised its import duty to 100%, both citing unfair trade practices. Australia, however, has yet to take similar measures.
Despite Hyundai’s concerns, its sister company Kia is embracing Chinese production — sourcing its EV5 from a plant near Shanghai, allowing it to price the SUV more competitively. Hyundai has a similar model sold in China (the Elexio) but hasn’t confirmed if it will be brought to Australia.
Romano stressed that Hyundai’s focus remains on quality, branding, and long-term customer trust rather than racing to the bottom on price.
