Volvo XC40 Recharge Pure Electric: Australian and overseas prices compared
Australian pricing of Volvo’s first-ever fully-electric SUV is remarkably sharp compared to other markets.
We’ve all heard it. “Cars are too expensive in Australia, my friend lives in [insert country name here] and pays so much less”. It’s a bit of throw-away banter, and may have been true once, but not anymore.
My sister, who lives in the UK, was bemoaning the price of the 2022 Volvo XC40 Recharge Pure Electric as it was top of the list for her next car purchase. At nearly 50 thousand ‘pounds’ ($AU93,600), the electric XC40 commands nearly £10,000 ($AU18,700) more than the (arguably lower spec) hybrid version, but at least, she said, it was cheaper than in Australia.
Ah, sorry sis. It isn’t.
Priced at $76,990 before on-road costs the XC40 Recharge Pure Electric is the equivalent of about £41,000. Throw in the $3000 (
£1600) rebate for buyers in some states, and Australians can pick up an electric XC40 for about the same as our colonial siblings can buy the hybrid (£39,100). Forget rugby or cricket, that’s a clear win right there.But what about other countries?
We’ve had a look at ten global markets where the Pure Electric XC40 is sold, and found that Australia is in fact the fourth most affordable. At about $77,000, Australia is $6100 more expensive than France (€44,390 or $AU70,900), $10,900 more than Canada ($CA59,950 or $AU66,100) and $13,600 pricer than China (¥286,000 or $AU63,400).
Given the XC40 Recharge Pure Electric is built in China, and attracts an
¥18,000 ($AU4000) subsidy, which is factored into the price, it’s not surprising to see this as its most affordable market.Everywhere else though, is more expensive.
In our sample of ten countries, there is a staggering $AU44,400 range between the highest and lowest prices, and a median price of $AU88,700. Many markets include higher taxes than in Australia and our usually price-crippling Luxury Car Tax has a threshold of $79,659 for fuel-efficient vehicles, so it does not apply to the XC40.
From our set, Thailand is the most expensive place to buy one, with the equivalent of $AU107,800 needed to pop your name on an electric XC40, followed by our right-hand-drive brethren in South Africa at the equivalent of $AU106,400.
According to the benchmark of all things global pricing parity, The Economist’s Big Mac Index, the Australian dollar is currently 15 per cent undervalued when compared to the US dollar, which should give us some latitude in terms of keener pricing.
As production and supply ramp up into the new year, we’ll keep an eye on other key models to see where we sit on the world stage, but for now, know that your 300kW electric Volvo in Australia is somewhat of a global bargain.
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