Hyundai, Kia EVs get incentives from Australian Government

The Australian Government is partnering with Hyundai Capital Australia to offer discounts on Hyundai and Kia electric vehicles (EVs).

The Clean Energy Finance Corporation (CEFC) has committed up to $60 million for the initiative, which will see Hyundai Capital Australia (HCAU) offer discounted finance on eligible Hyundai and Kia EVs.

HCAU is offering discounts of 0.5 per cent to 1.0 per cent per annum on customers’ finance rates, depending on the model, with the government noting a 1.0 per cent discount on a $70,000 loan resulting in potential savings of more than $1900 in interest costs.

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The discounts apply to vehicles priced under $91,387 – the Luxury Car Tax (LCT) threshold for fuel-efficient vehicles – while demonstrator vehicles must have travelled less than 5000km.

Hybrid and plug-in hybrid (PHEV) models are excluded from the offer, as are novated lease customers, and the discounted financing can’t be combined with any other finance.

The following Hyundai and Kia models currently have variants under this threshold:

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

“This CEFC investment will help lower the cost barrier for households and small businesses, making EV ownership more accessible,” said Chris Bowen, the federal Minister for Climate Change and Energy.

“Transport is one of our biggest sources of emissions, and electric vehicles are a key way we cut pollution while saving people money.”

“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.”

Hyundai Capital is the financial service unit of the Hyundai Motor Group, which owns Hyundai, Kia and Genesis.

The CEFC is Australia’s specialist climate investor, backed by more than $33 billion in capital from the Australian Government, and has invested in a number of initiatives from hydrogen production and refuelling facilities to EV chargers.

Sales of Kia EVs rose 125.2 per cent last year, with the EV5 properly on stream after launching late in 2024 and the EV3 arriving later in 2025, though sales of the EV6 and EV9 tumbled significantly. The brand’s sales overall were up 0.4 per cent year-on-year.

Sales of Hyundai’s EVs, in contrast, slumped by 30 per cent overall, with the Ioniq 5 and Ioniq 6 off significantly and the arrival of the Inster and Ioniq 9 failing to offset this.

Despite this drop in EV sales, Hyundai grew its sales overall by 7.7 per cent – much more pronounced growth than Kia, but not enough to push past its sister brand on the sales charts.

Luxury brand Genesis fared worse in the EV game, with sales of its EVs lineup falling by 42.9 per cent despite the brand being up by 14.4 per cent year-on-year.

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