The true cost of electric cars exposed: How the price of EVs like the 2025 BYD Sealion 7 and MG S5 compare against some of Australia's favourite models including the MG ZS, BYD Sealion 6 and Toyota RAV4 | Analysis

How much does an electric vehicle (EV) cost? It’s a bit like asking ‘how long is a piece of string’, because obviously EVs come in various shapes, sizes and brands, but there has been a common answer in recent years - too much.

We have been told over and over by EV skeptics that they simply cost too much and are therefore not good and should be overlooked. But is that the truth? What are the facts when it comes to the actual cost of EVs and the comparison to alternatives?

Well, we wanted to find out, so we’ve crunched the numbers so you don’t have to. We haven’t priced every EV, but we have gone through and looked at the price of an EV in comparison to its closest internal combustion engine (ICE) alternative and/or its closest hybrid version.

In unsurprising news, electric cars remain considerably more expensive than a petrol or diesel-powered like-for-like alternative, but in good news the gap between hybrid and ICE models is getting closer. The smallest gap we discovered between an EV and its ICE equivalent was $6500, which is the gap between the MG ZS Excite petrol and the MG S5 Excite 49kWh electric SUV.

Interestingly the gap between the BYD Sealion 7 EV and the Sealion 6 plug-in hybrid (PHEV) was still $6000, when comparing the cheapest variant from each range. However, when you compare the two Premium grades from each line-up the gap shrinks to just $2000.

When you look at the smaller end of the market, the gap can be huge. Take the Hyundai Inster as a prime example. The Inster is the cheapest EV from a ‘legacy’ (aka not-Chinese) brand and starts at $39,000, which is already $10,000 more than the absolute cheapest EV, the $29,990 BYD Dolphin. However, when you compare it to Hyundai’s smallest (and similar-sized) petrol model, the Venue, the gap between the two Hyundai models is a staggering $16,250.

Moving to Hyundai’s sister-brand, Kia, we can look at its popular Sportage SUV and its new, similar-sized EV5. Kia offers the Sportage with both a petrol engine and conventional hybrid, so there is a good comparison to be made across the technologies. The gap between the same grade (GT-Line) is just $3380 between petrol and hybrid, but when you look at the EV5 GT-Line the gap balloons to $17,780 (between Sportage petrol) and $14,400 (Sportage hybrid), underlining just what a leap an EV still is.

Interestingly, at the premium end of the market the gap is significantly smaller. At least when looking at the example of the BMW X1 and iX1. The X1 xDrive20i starts at $71,800, while the iX1 eDrive20 is ‘only’ $8800 more ($80,600).

Finally, looking at Australia’s most successful car company, it’s pretty clear why EVs seemingly remain a low priority for Toyota. The company’s wildly successful RAV4 Hybrid starts at $42,260 (GX), which is a stunning $23,740 cheaper than the similar-sized, all-electric Toyota bZ4X. Even the top-of-the-range all-wheel drive hybrid RAV4 is more than $7600 cheaper than the most-affordable bZ4X.

Put simply, the cost of EVs compared to ICE or even PHEV and hybrid vehicles remains high and does so across all brands. While the gaps may be larger for some, the reality is EVs remain a cost-premium offering at this stage regardless of who makes them and where.

However, none of this is to say EVs are a mistake or a bad purchase. For those who prefer the silent running, easy performance or the potential environmental benefits of an EV, then you have plenty to choose from.