It was a dreary Tuesday afternoon when I got the call. “Have you seen this?” asked my colleague James, his voice carrying that unmistakable tone of genuine surprise – rare in this industry where leaks and predictions typically remove the element of shock from most announcements.
I hadn’t seen it yet, but within minutes my inbox was flooded and my phone wouldn’t stop buzzing. Geely, the Chinese automotive giant still establishing its foothold in Australia, had just rewritten the rules of the local electric vehicle market with a single press release.
The 2025 Geely EX5, originally slated to launch in Australia with a starting price of $41,990 drive-away, would now hit showrooms at $29,990 drive-away for the base model. To put this in perspective, that’s cheaper than many petrol-powered small SUVs – and a full $12,000 less than initially advertised just weeks earlier.
As I furiously scanned through the press release, searching for the catch or condition that surely must exist, I found none. This wasn’t a limited-time offer or a bait-and-switch with a stripped-down model. This was the genuine article – a fully-featured, modern electric SUV with a range of 420km from a respected global manufacturer, now priced in the same bracket as a mid-spec Toyota Corolla.
“It’s bloody bonkers,” texted Pete, a veteran industry analyst I’ve known for years. “I’ve been covering this industry for two decades and I’ve never seen a price adjustment of this magnitude this close to launch.”
He wasn’t wrong. We’d seen price drops before – Tesla had played with their pricing strategy multiple times, occasionally dropping Model 3 prices by a few thousand dollars. But this was different. This was a seismic shift that threatened to upend the entire market overnight.
What You Actually Get for $29,990
The natural first question any cynical Australian would ask is: what’s the catch? I’d arranged a preview drive of the EX5 a month earlier, when it was still positioned as a $42K vehicle, and recall being impressed by what seemed like solid value even at that higher price point.
The base Comfort model – now the sub-$30K offering – comes with a 55kWh LFP (lithium iron phosphate) battery pack providing that aforementioned 420km WLTP range. It’s front-wheel drive with a single motor producing 160kW and 330Nm – enough to propel this compact SUV from 0-100km/h in a respectable 7.2 seconds.
Standard equipment includes 18-inch alloy wheels, a 12.3-inch central touchscreen with wireless Apple CarPlay and Android Auto, a 10.2-inch digital instrument cluster, leatherette upholstery, dual-zone climate control, and a comprehensive safety suite including adaptive cruise control, lane keep assist, blind-spot monitoring, and autonomous emergency braking.
During my preview drive along winding roads near the Dandenong Ranges, the EX5 had impressed with its composed handling and responsive powertrain. The cabin materials weren’t luxurious but were perfectly acceptable – think Mazda-adjacent rather than Audi – and the technology worked intuitively without the frustrating quirks sometimes found in vehicles from newer manufacturers.
“We’ve made no changes to the specification,” confirmed David, a Geely Australia representative I called after the announcement. “Same vehicle, same features, just a dramatic repositioning in the market.”
This wasn’t a case of de-contenting a vehicle to hit a price point. This was a strategic bombshell.
The Mystery Behind the Move
When a car company makes a major price adjustment, it’s typically for one of several reasons: clearing old stock, responding to poor initial sales, or countering a competitor’s move. None of these applied here. The EX5 hasn’t even launched yet in Australia, and at the originally announced price, it was already positioned as one of the more affordable electric SUVs in the market.
Industry insiders I spoke with offered several theories about the dramatic repositioning.
“It’s a land grab, pure and simple,” suggested Marcus, who works for a rival European brand he asked me not to name. “The Chinese makers know that establishing market share now, in these early days of EV adoption, could set them up for decades. They’re playing the long game while the European and Japanese brands are still trying to protect their margins.”
Another theory came from Sarah, an EV fleet manager for a major Australian corporation: “The price of battery components has fallen faster than anyone expected. If you’ve scaled up production enough, you can pass those savings on and still make money. The Western manufacturers don’t want to admit how much profit they’re building into their EV pricing.”
But perhaps the most compelling explanation came from a candid conversation with a Geely executive at a media function last night, who spoke off the record: “We looked at the Australian market specifically and saw an opportunity. You have high fuel prices, growing environmental awareness, but EV adoption lagging behind similar markets. The barrier is clearly price. So we decided to just smash through that barrier instead of tiptoeing around it.”
Whatever the reasoning, the impact is undeniable. At $29,990, the EX5 is now the cheapest highway-capable electric vehicle in Australia by a significant margin, undercutting the BYD Dolphin by around $7,000 and positioned a staggering $15,000 below the entry-level Tesla Model 3.
The Competitive Landscape Just Imploded
To appreciate the full magnitude of this pricing announcement, you have to understand the Australian EV market as it stood just yesterday.
The most affordable EVs included the BYD Dolphin at around $38,000 drive-away, the MG4 starting at about $39,000, and the GWM Ora at approximately $40,000. The “mainstream” options from Western brands started at much higher price points – the Kia Niro EV at around $55,000, the Hyundai Kona Electric at a similar level, and the Volkswagen ID.3 coming in at over $60,000.
Tesla’s Model 3, often considered the benchmark in the segment, starts at around $54,990 drive-away after recent price cuts.
Against this backdrop, Geely’s initial $41,990 pricing for the EX5 seemed competitive but not revolutionary. It would have slotted in alongside the other Chinese offerings, fighting for the same price-sensitive early adopters.
But at $29,990, it exists in a category of one. It’s now competing not with other EVs, but with popular petrol SUVs like the Mazda CX-30, Hyundai Kona, and Toyota Corolla Cross.
“This changes absolutely everything,” admitted John, a dealer principal for a multi-franchise operation that includes several Japanese brands. “I was at a meeting this morning where we were discussing our Q4 targets, and halfway through, everyone’s phones started pinging with this news. The room went silent. We’re going to have customers walking in asking why they should pay $35K for a petrol SUV when they could get an electric one for less.”
The impact is likely to be felt hardest by the other Chinese EV makers who had been competing on price. BYD, MG, and GWM now find themselves in the awkward position of being the “expensive” Chinese options, without the established brand equity of Western manufacturers to justify the premium.
“BYD will have to respond,” predicted Tom, an industry consultant who works with several manufacturers. “They’ve built their entire Australian strategy around being the affordable EV option. Geely just pulled the rug out from under them. I’d expect countermoves within weeks, not months.”
The Ownership Equation Just Changed
For years, the conversation around EV adoption has centered on the “total cost of ownership” argument. Yes, EVs cost more upfront, advocates would explain, but factor in the savings on fuel and maintenance, and they become competitive over a 5-7 year ownership period.
It was always a tough sell. Human psychology tends to prioritize immediate costs over long-term savings, and asking budget-conscious buyers to spend an extra $15,000 upfront to save money eventually was never going to drive mass adoption.
The EX5’s new pricing changes the equation entirely. At $29,990, it’s already cheaper than many equivalent petrol vehicles before any operational savings are calculated. The long-term math now heavily favors the electric option.
Let’s run some quick back-of-napkin calculations. A comparable petrol SUV might use around 7L/100km in mixed driving. At current Australian fuel prices of roughly $2/liter, that’s $14 per 100km. The EX5, using around 16kWh/100km and charging predominantly at home at off-peak rates of approximately 15c/kWh, would cost about $2.40 per 100km to run.
For someone driving the Australian average of 15,000km per year, that’s a saving of about $1,740 annually on fuel alone. Add in reduced service costs – Geely is offering 7 years of free servicing as part of the launch deal – and the gap widens further.
“The argument has completely flipped,” said Elena, an energy economist I consulted for this article. “We’re no longer asking consumers to pay more upfront to save later. We’re offering them savings from day one, plus more savings over time. That’s a much easier sell.”
The Knock-On Effects
The ripples from this pricing announcement will extend far beyond Geely’s sales figures or their immediate competitors’ responses. Here are some potential broader impacts:
Accelerated EV adoption: Australia has lagged behind comparable markets in EV uptake, with electric vehicles making up just 7.2% of new car sales in the first half of 2024. With the entry price now significantly lower, expect to see adoption rates climb sharply.
Pressure on infrastructure: More affordable EVs mean more EVs on the road, period. Australia’s charging infrastructure, already straining in some areas, will face increased pressure. This could accelerate investment in public charging networks, but may also lead to congestion at existing stations in the short term.
Used car market disruption: As new EV prices fall, the value proposition of used EVs changes dramatically. A three-year-old Tesla Model 3 priced at $45,000 suddenly looks less attractive when a brand-new EV is available for $15,000 less.
Policy implications: Government incentives for EVs have been a contentious political issue in Australia. With market forces now driving prices down naturally, expect the debate around subsidies and tax breaks to shift significantly.
Local manufacturing questions: Australia’s departure from car manufacturing was partly driven by an inability to compete on cost. With Chinese manufacturers now demonstrating the ability to sell vehicles at these price points profitably, it raises uncomfortable questions about whether local manufacturing could ever return.
What About Quality and Reliability?
The elephant in the room with any aggressively priced vehicle is whether corners have been cut to hit that price point. While I can’t offer long-term reliability data on a vehicle that hasn’t launched yet, I can provide some context.
Geely is no fly-by-night operation. The company owns Volvo and Lotus, has a controlling stake in Proton, and has been manufacturing vehicles since 1997. Their global sales exceed 2.3 million vehicles annually, and their engineering capabilities have improved dramatically in the past decade.
During my preview drive, the EX5 felt solidly built, with panel gaps, interior materials, and overall fit and finish that wouldn’t be out of place in a Japanese or Korean vehicle. The infotainment system was responsive, the drive modes worked as expected, and there were no warning lights or glitches during my time with the vehicle.
“We’re offering a 7-year, unlimited-kilometer warranty on the entire vehicle, plus a 7-year battery warranty,” the Geely representative reminded me. “We wouldn’t do that if we weren’t confident in the product.”
Of course, a new brand establishing itself in a market comes with some unknowns. Service network coverage, parts availability, and resale value are all question marks that will only be answered with time. Buyers considering the EX5 should factor these considerations into their decision-making process.
Is This the Electric Tipping Point?
For years, industry analysts have discussed the concept of an “EV tipping point” – the moment when electric vehicles stop being a niche alternative and start becoming the default choice for mainstream buyers. Different markets have reached this inflection point at different times, driven by a combination of government policy, infrastructure development, and crucially, competitive pricing.
Norway hit this tipping point years ago, with EVs now making up over 80% of new car sales. Markets like the UK, Germany, and China have seen rapid acceleration in recent years, with EVs accounting for between 20-30% of new vehicle sales.
Australia has been slower to transition, but Geely’s aggressive move could be the catalyst that changes the trajectory dramatically.
“This is potentially our ‘Model T moment,'” suggested Professor Alan Davidson, who specializes in transport economics at the University of Melbourne. “Ford’s breakthrough wasn’t inventing the automobile – it was making it affordable for average Americans through manufacturing innovation and scale. Geely appears to be doing something similar for EVs in Australia.”
The comparison isn’t perfect – the EX5 isn’t revolutionizing manufacturing processes the way the Model T did. But the impact on accessibility could be similar.
“$30K is where psychological barriers break down,” Davidson continued. “It’s where a technology transitions from aspirational to attainable for middle-income households.”
The Game Has Changed
As I write this, less than 48 hours after Geely’s announcement, the Australian automotive landscape feels fundamentally altered. Competitors are scrambling, dealers are reassessing their inventory strategies, and consumers who had written off electric vehicles as too expensive are suddenly scheduling test drives.
The EX5 won’t be for everyone. Some will prefer the established dealer networks of traditional brands. Others may have range requirements that necessitate a more expensive EV with a larger battery. And some will simply be skeptical of a relatively new brand making such aggressive promises.
But what’s undeniable is that Geely has changed the conversation. The question is no longer “Can I afford an electric car?” but rather “Can I afford not to consider one?”
For an industry that typically evolves through incremental improvements and cautious price adjustments, this kind of disruption is rare and significant. The $12,000 price cut on the EX5 may well be remembered as the moment when electric vehicles in Australia crossed from the future into the present.
The barriers to entry have fallen. The excuses have evaporated. The electric future just arrived, and it costs less than we thought.
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