Under this program, up to $60 million in funding will be allocated to provide interest rate reductions ranging from 0.5% to 1.0% on vehicle loans. For instance, a 1.0% discount on a $70,000 loan over five years could result in savings exceeding $1,900 in interest costs. The discounted financing applies to new, fully electric vehicles priced below the luxury car tax threshold, currently set at $91,387.
Minister for Climate Change and Energy, Chris Bowen, highlighted the significance of this initiative, stating that it offers consumers more choices for their next vehicle while supporting the transition to cleaner transport options. He emphasized that transport is a major source of emissions, and increasing EV adoption is crucial for reducing pollution and saving consumers money.
In 2025, Australia saw a record addition of 156,000 EVs to its roads, with December alone accounting for a 16.7% market share in EV sales. This partnership between CEFC and Hyundai Capital is expected to further accelerate this growth by addressing one of the primary barriers to EV adoption: the higher upfront cost compared to traditional internal combustion engine vehicles.
Donglim Shin, CEO of Hyundai Capital Australia, acknowledged that upfront costs remain a significant hurdle for many potential EV buyers. He expressed optimism that this collaboration would make EV ownership more achievable for Australian customers by offering discounted finance on eligible Hyundai and Kia EVs.
This initiative is part of a broader effort by the Australian Government to promote the adoption of electric vehicles. By reducing financial barriers, such programs aim to encourage more consumers to consider EVs, thereby contributing to the country's emissions reduction targets and fostering a more sustainable transportation sector.
