Chinese EVs and PHEVs could cost about 4 per cent more from April 2027
China will cut the export tax rebate on electric and plug-in hybrid cars from 1 April 2027, a move that could make Chinese-built cars more expensive in Australia. The Ministry of Finance and the State Taxation Administration announced on 12 October 2026 that the value-added tax export rebate for new energy vehicles will drop from 13 per cent to 9 per cent.
What is changing
Chinese carmakers pay value-added tax on parts and materials, and the government refunds part of it when a car is exported. From April 2027 a four-percentage-point slice of that tax will no longer be refunded and becomes a real cost for the maker. The change covers battery electric cars and plug-in hybrids, including range-extender models.
| Item | Current | From April 2027 |
|---|---|---|
| Export rebate rate | 13 per cent | 9 per cent |
| Start date | Now | 1 April 2027 |
| Models covered | EVs, PHEVs and range-extenders | Same |
| Battery export rebate | Being phased down | Scrapped from 1 January 2027 |
How it could hit Australian buyers
Australia is one of the biggest markets for Chinese-built cars, from BYD, MG, GWM, Chery, Geely and Leapmotor to the Shanghai-built Tesla Model 3 and Model Y. If makers pass the full cost on, prices could rise by up to about 4 per cent. The examples below are our estimates only, assuming the full rise is passed through.
| Car price (estimate) | Possible rise at 4 per cent (estimate) |
|---|---|
| $30,000 | About $1,200 |
| $40,000 | About $1,600 |
| $50,000 | About $2,000 |
| $60,000 | About $2,400 |
The real impact is likely to be smaller for many models, because the rebate applies to the export value, not the Australian sticker price, and brands can absorb some of the cost. Exchange rates, shipping costs and competition will matter just as much. No carmaker has announced Australian price rises linked to the change yet.
Buy now or wait
The change does not start until April 2027, so prices are not expected to move straight away. Brands may even push harder on price before then to grab market share, much like current deals such as the BYD cashback offer. Even with a rise, Chinese models are still expected to undercut many rivals from established brands.
If you are shopping now, compare models like the BYD Atto 3 and Tesla Model Y, check our average new car price guide and factor in on-road costs before you sign.
