New Government Initiative Offers Discounted Loans for Hyundai and Kia Electric Vehicles

Under this scheme, the CEFC has committed up to $60 million to offer interest rate discounts ranging from 0.5% to 1% per annum on eligible EV models. For instance, a 1% discount on a $70,000 loan could result in savings exceeding $1,900 over a five-year term. Eligible vehicles must be priced below the Luxury Car Tax (LCT) threshold, currently set at $91,387, and the program is exclusive to full battery electric vehicles, excluding hybrid and plug-in hybrid models.

Climate Change and Energy Minister Chris Bowen highlighted that this investment is designed to lower the cost barrier for households and small businesses, thereby making EV ownership more accessible. He emphasized that transport is a significant source of emissions, and increasing the adoption of electric vehicles is a key strategy in reducing pollution while offering financial savings to consumers.

Donglim Shin, Chief Executive of Hyundai Capital Australia, expressed hope that the CEFC's investment would assist potential buyers who are considering the switch to electric vehicles but are concerned about the associated costs. He noted that reducing the purchase price through discounted financing could influence motorists contemplating low-emission options.

The list of eligible Hyundai and Kia electric vehicles under this initiative includes:

• Hyundai Inster
• Hyundai Kona Electric
• Hyundai Elexio
• Hyundai Ioniq 5
• Hyundai Ioniq 6
• Kia Niro
• Kia EV3
• Kia EV4
• Kia EV5
• Kia EV6

According to data from the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council, Australians purchased a total of 103,269 battery electric vehicles in 2025. This record number represents 8.3% of the total new car market and marks a 13.1% increase over the previous year.

This collaboration between the CEFC and HCAU signifies a substantial step towards promoting sustainable transportation in Australia. By offering financial incentives, the initiative aims to accelerate the adoption of electric vehicles, contributing to the nation's environmental goals and providing economic benefits to consumers.