The Australian Government will partially subsidise loans for Hyundai and Kia EVs after the Clean Energy Finance Corporation (CEFC) announced a commitment of up to $60 million towards financing.
Partnering with Hyundai Capital Australia (HCAU), the in-house finance department of the Hyundai Motor Group, the CEFC’s $60 million injection allows potential EV buyers to access discounted finance rates, though only on certain Hyundai and Kia cars.
Available for new EVs priced under the luxury car tax (LCT) threshold - currently $91,387 for vehicles consuming less than 3.5L/100km - the government claims the initiative could lead to a discounted finance rate between 0.05 per cent and 1.0 per cent, depending on the customer.
However, this limits the available EVs to just 10 models across the two brands, with Hyundai’s Elexio, Inster, Ioniq 5, Ioniq 6 and Kona Electric being eligible, alongside the Kia EV3, EV4, EV5, EV6 and Niro.
Importantly, the financing discounts aren’t available for novated leases, which EVs separately have a fringe benefits tax (FBT) exemption for - reported to have cost Australian taxpayers more than $1 billion last year.
“Electric vehicles are an important part of Australia’s mobility future, but upfront cost can be a barrier for many customers,” said HCAU CEO Donglim Shin.
“Working with the CEFC allows us to offer discounted finance on eligible Hyundai Motor Group electric vehicles, making electric vehicle ownership more achievable for Australian customers.”
“This CEFC investment will help lower the cost barrier for households and small businesses, making EV ownership more accessible,” said Minister for Climate Change and Energy, Chris Bowen.
“Transport is one of our biggest sources of emissions, and electric vehicles are a key way we cut pollution while saving people money.”
Last year, 103,269 new EVs were delivered in Australia, the first time the market had cracked the 100,000 annual deliveries mark, while representing 8.3 per cent of all new cars sold.
Kia was the third-largest brand for EV deliveries with 8131 examples reaching customers, while Hyundai managed just 1882 deliveries for the year.
