Australian Government backs discounted finance for Hyundai and Kia EVs

A new partnership between the Australian Government’s Clean Energy Finance Corporation and Hyundai Capital Australia aims to reduce the upfront cost of electric vehicles by offering discounted finance to households and small businesses.

The Clean Energy Finance Corporation has committed up to A$60 million to partner with Hyundai Capital Australia to provide lower interest rates on eligible fully electric Hyundai and Kia vehicles priced below the luxury car tax threshold.

Under the scheme, eligible customers can receive interest rate discounts of between 0.5% and 1%. On a A$70,000 loan, a 1% discount over five years could reduce interest costs by more than A$1,900.

Australia’s Minister for Climate Change and Energy Chris Bowen says the initiative is designed to give consumers more choice and reduce barriers to EV ownership.

“This CEFC investment will help lower the cost barrier for households and small businesses, making EV ownership more accessible,” Bowen says.

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

The discounted finance applies to new and demonstrator battery electric vehicles from Hyundai and Kia, with demonstrator vehicles required to have travelled less than 5000 kilometres. Hybrid vehicles are excluded from the programme.

Hyundai Capital Australia launched its Electric Vehicle Finance Discount Program on January 23 following the agreement with the CEFC signed in December last year. The company says the initiative reflects its commitment to supporting wider EV adoption.

“Electric vehicles are an important part of Australia’s mobility future, but upfront cost can be a barrier for many customers,” Hyundai Capital Australia Donglim Shin says.

“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.”

Interest rate discounts vary by model, and Hyundai Capital Australia says additional manufacturer-supported incentives may be offered from time to time, including deposit contributions or further reductions in finance rates during promotional periods.

The announcement comes as EV uptake in Australia continues to grow. A record 156,000 electric vehicles were added to Australian roads in 2025, with December recording a monthly EV market share of 16.7%.

The CEFC says the programme complements existing government initiatives aimed at reducing transport emissions and supporting the transition to net zero by 2050.