A price war for Australia’s cheapest ‘small’ electric vehicle (EV) could be about to erupt, with details surfacing from Chery’s overseas distributors that could reshape the Australian market.

A new compact model, called the Chery Q, has gone on sale in Thailand, providing a strong hint at the relative positioning for the model in other right-hand drive markets, including Australia.

Pricing for the Thai version, where the models is known as the Chery Q, is set to start from 469,900 Thai baht (A$20,400) at its recommended retail price.

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Right now, BYD holds the title of Australia’s cheapest EV outright, with the Atto 1 priced from $23,990 plus on-road costs before offers or promotions. Unlike the 3990mm-long Atto 1, which is classified as a Light Car in Australia, the 4195mm-long Chery Q steps up a class into the Small Car category.

BYD sells the Atto 1 at a slightly lower price in Thailand, starting from 429,900 baht (A$18,650).

The Chery Q, meanwhile, would be pitched as a competitor to cars like the BYD Dolphin (from $29,990 plus on-road costs), MG 4 Urban (from $31,990 drive-away), and GAC Aion UT (from $31,990 drive-away).

Comparatively, Thailand’s cheapest Dolphin variants starts from A$26,020 or roughly 27 per cent, more than the Chery Q’s starting point. Applying the same relative gap for Australia could see the Q start from as little $23,500.

If Chery where to land the QQ3 here undercutting the smaller Atto 1 on price, the move could start a price war for Australia’s cheapest EV.

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Rival Chinese brand, Geely, is also poised to join Australia’s small car EV market with the EX2 later this year. Thai pricing for that model matched the Atto 1 in Thailand (from A$18,650) and while Australian pricing is yet to be announced, both incoming models pose a serious threat to BYD’s current price-leading position.

Chery may, however, opt to undercut direct Small Car rivals and leave the Atto 1 as Australia’s cheapest EV, instead targeting similarly sized EVs for price leadership.

Earlier this year Chery confirmed the QQ3 for Australia, where it will adopt the Chery Q name, but has yet to confirm timing.

Thai versions of the Chery Q are equipped with a 90kW/115Nm rear motor and 42.7kWh battery enabling up to 400km of claimed NEDC range, with recharging at up to 85kW DC. By comparison the Atto 1 Essential offers a 70kW/175Nm front motor, 30kWh battery, and 220km of claimed range, based on WLTP-cycle testing).