CANBERRA: Australia’s Clean Energy Finance Corporation said it will commit up to A$60 million to support discounted car loans for buyers of eligible Hyundai Motor Group and Kia battery electric vehicles, in a partnership with Hyundai Capital Australia. The program offers eligible customers a reduction of 0.5 to 1.0 percentage points on their finance rate, according to government and company statements released on Feb. 3.
The federal government said the discounted finance is available for new, fully electric vehicles priced below the luxury car tax threshold, and is aimed at households and small businesses. The arrangement is being delivered through Hyundai Capital Australia, which sets the customer’s personalised rate and applies the discount for eligible applicants. Hyundai Capital said the offer applies to approved finance applications received after Jan. 23, 2026, and excludes hybrid vehicles.
Hyundai Capital said eligibility is tied to a vehicle price cap of A$91,387 including GST based on the original invoice price, and that customer deposits or trade-ins do not change the eligibility price. It said demonstrator electric vehicles can qualify if they meet the program’s criteria, including having travelled less than 5,000 kilometres. The company also said the offer is not available to novated lease customers, and that standard fees, charges and lending criteria apply.
Officials pointed to the potential savings from a lower finance rate as a way to reduce the upfront cost of electric vehicle ownership. Government statements said a 1.0 percentage point discount on a A$70,000 loan over five years could save more than A$1,900 in interest costs, depending on the customer’s approved rate and loan terms. The discount varies by vehicle make and model within the Hyundai and Kia electric ranges.
Transport is Australia’s third-largest source of emissions and accounts for around 22% of national emissions, according to federal climate and energy information. The government said 2025 added a record 156,000 electric vehicles to Australia’s roads, and that December 2025 delivered a record monthly share of 16.7% of new vehicle sales for electric vehicles. Chris Bowen said the partnership is intended to reduce running costs and help cut transport emissions.
Discounted finance arrangement
The CEFC said its commitment supports discounted rates through Hyundai Capital Australia, with the stated aim of making finance more affordable for households, small businesses and fleets purchasing eligible electric vehicles. The CEFC is a government-owned specialist climate investor backed by more than A$33 billion in capital, and invests across clean energy and emissions-reduction projects. Hyundai Capital Australia is the local finance arm supporting Hyundai and Kia vehicle customers in Australia.
The CEFC said it has helped finance more than 17,000 electric vehicles since its inception, with transactions exceeding A$1 billion in value when including third-party capital. It said its transport-related financing has supported consumer and fleet electric vehicle uptake through a range of asset finance programs. The CEFC also said the Hyundai Capital arrangement supports the future integration of electric vehicles into the electricity grid, including vehicle-to-grid capable models.
Eligibility and access
Hyundai Capital said eligible customers apply for finance through its channels and participating sales networks, with discounts applied to the customer’s personalised interest rate after approval. It said the CEFC is not involved in individual financing decisions. Hyundai Capital also said additional campaign incentives may be offered from time to time with manufacturer support, including deposit contributions or further reductions in finance rates, subject to the program’s terms.
The loan discount initiative arrives as federal incentives for electric vehicles remain under review. The government’s electric car discount, which has applied since July 2022, provides fringe benefits tax and tariff exemptions for eligible vehicles under specific conditions, and a statutory review of that policy was announced in December 2025. The government said the discounted finance partnership is part of measures aimed at lowering ownership costs for eligible buyers while supporting emissions reductions from road transport. – By Content Syndication Services.