BYD’s hybrid ute targets Australia’s love of gas-guzzlers

One of the world’s safest havens for fuel-guzzling pickups, Australia, is set for its biggest shakeup in years with the arrival of new models including the first hybrid off-roader from China’s BYD.

Australia, famed for its love of petrol-powered SUVs and trucks, has cemented its status as an electric-vehicle laggard.

EV sales slumped 25 per cent in the third quarter from the previous three months and accounted for just 6.6 per cent of the market, according to the Australian Automobile Association. That’s the smallest proportion since 2022.

BYD’s rollout of the Shark 6 hybrid is a potential turning point. The vehicle offers Australian buyers a taste of electrification, albeit a partial one, while satisfying their obsession with chunky pickups.

If successful, China’s best-selling car brand could finally unlock an Australian market that’s been wrapped up by the world’s major manufacturers. Toyota’s RAV4 and HiLux, and Ford’s Ranger and Everest are the country’s four best-selling cars.

The introduction of a hybrid ute in Australia is an “important development”, said Tony Weber, chief executive of the Federal Chamber of Automotive Industries. Hybrid vehicles are “a stepping stone” toward the inevitable full-scale adoption of EVs on the path to net zero, he said.

“It’s the trajectory that’s in question, not the ultimate landing place,” Mr Weber said.

Hybrids — vehicles powered by both an engine and a battery — address a deep-seated fear among Australians outside major cities that their EV will run out of juice far from any charging station.

As overall new vehicle sales fell in the third quarter, hybrid purchases rose 3.3 per cent, taking the segment’s share to 17 per cent, according to the AAA. Hybrids have outsold pure EVs in Australia for five straight quarters.

BYD’s Shark 6 also narrows an affordability gap that for years put EVs beyond the reach of many Australians. The car starts at less than $60,000 and the first deliveries are due in weeks. A top-end Ford Ranger can cost almost $100,000.

Meanwhile, the new diesel-powered Tasman ute from South Korea’s Kia is an appeal to more traditional buyers. But it’s a risk for the company, all the same.

That’s because utes occupy an over-sized, male-centric corner of popular culture. They’re often advertised as a symbol of masculine ruggedness and adventure, towing boats and caravans to remote destinations.

That will be new territory for Kia, a carmaker better known for budget-friendly SUVs, small hatchbacks, and functional urban people carriers.

Kia’s Tasman will be available mid-2025. Prices haven’t yet been disclosed.

Still, both the Tasman and the Shark 6 appear to break new ground in other ways, however they’re powered. The interiors appear sleek and spacious, more like a passenger car than a load-carrying truck. The Tasman, in particular, has a vast display panel that wouldn’t look out of place in a Tesla.

If the newcomers can combine form as well as function, Australians may not be able to say no.

Bloomberg