BYD has officially launched the Atto 2 DM-i in Australia, making it the nation’s most affordable plug-in hybrid electric vehicle (PHEV) with a starting price of $24,990 before on-road costs. This aggressive pricing, confirmed today (September 24, 2026), significantly undercuts existing PHEV models and signals a renewed push by BYD into the budget-conscious Australian market.
The arrival of the Atto 2 DM-i positions BYD to capture a substantial share of buyers seeking to reduce their fuel expenses without fully committing to a battery electric vehicle (BEV). Its introduction also follows closely on the heels of the Atto 1 EV becoming Australia’s cheapest new car just nine days prior, further demonstrating BYD’s strategy to disrupt pricing across the electrified vehicle segments.
Unpacking the BYD Atto 2 DM-i’s Value Proposition
The 2027 BYD Atto 2 DM-i range consists of two variants: the Essential and the Premium. The entry-level Atto 2 DM-i Essential is priced at $24,990 before on-road costs, while the higher-specification Atto 2 DM-i Premium is available for $29,990 before on-road costs. This pricing places it approximately $7,000 below the equivalent Atto 2 EV models.
Crucially, the Atto 2 DM-i enters the market approximately $9,000 cheaper than the next most affordable PHEV in Australia, the BYD Sealion 5 Essential (priced at $33,990 before on-road costs since its December 2025 launch). It also significantly undercuts the Chery Tiggo 7 Super Hybrid, which is currently offered at $34,990 drive-away until September 30, 2026.
“The plug-in hybrid version of the BYD Atto 2 will enter Australia $9000 cheaper than the next-cheapest PHEV on the market – and $7000 more affordable than the Atto 2 EV.”
Both Atto 2 DM-i variants are front-wheel drive and utilise BYD’s DM-i 5.0 plug-in hybrid system, which pairs a 1.5-litre naturally aspirated four-cylinder petrol engine with an electric motor. The key differentiator between the two models lies in battery capacity and electric-only range:
| Feature | Atto 2 DM-i Essential | Atto 2 DM-i Premium |
|---|---|---|
| Price (excl. ORCs) | A$24,990 | A$29,990 |
| Battery Capacity | 7.85kWh Blade Battery | 18.03kWh Blade Battery |
| WLTP EV Range | 39km | 90km |
| Engine | 1.5L NA Petrol | 1.5L NA Petrol |
| Electric Motor | 145kW/300Nm | 145kW/300Nm |
| Combined Output | Varies | Varies |
Standard features across both DM-i grades include wireless Apple CarPlay and Android Auto, adaptive cruise control, a surround-view camera, blind-spot monitoring, and LED headlights and taillights. The vehicle maintains the same compact SUV dimensions as its electric counterpart, measuring 4330mm long, 1830mm wide, and 1675mm tall, with a 2620mm wheelbase.
Impact on the Australian EV Market
BYD’s consistent strategy of introducing competitively priced electrified vehicles is having a profound effect on the Australian automotive landscape. The launch of the Atto 2 DM-i provides an accessible entry point into hybrid ownership for many Australians, particularly as fuel prices remain a significant concern. The national average for unleaded petrol has seen volatility throughout 2026, making the prospect of reduced reliance on petrol increasingly attractive.
While the Atto 2 DM-i offers a substantial saving over other PHEVs, it’s important for buyers to understand the current incentive landscape for electrified vehicles in Australia. As of April 1, 2025, plug-in hybrids are no longer eligible for the full Fringe Benefits Tax (FBT) exemption for new novated leases, a benefit now reserved for battery electric and hydrogen fuel cell vehicles under the Luxury Car Tax threshold. However, some state-level concessions, such as reduced registration fees or stamp duty, may still apply depending on the jurisdiction. Readers can explore broader incentives in our guide: Your 2026 Guide: Claim Up To $15,000 in Energy Rebates Across Australia.
The continued expansion of affordable EV and PHEV options is crucial for increasing uptake. Battery electric vehicles alone constituted a record 24.9% of all new car sales in Australia in August 2026, demonstrating a significant shift in consumer preference. The availability of models like the Atto 2 DM-i will further support this trend, particularly for those who may have been deterred by the higher upfront cost of full EVs or concerns about charging infrastructure.
For consumers evaluating their options, the Atto 2 DM-i presents a compelling case for bridging the gap between traditional petrol cars and full EVs. Its competitive pricing also positions it as a strong contender for buyers looking for value, alongside other models featured in our Best Electric Vehicles Under $40,000 in Australia 2026: Your Essential Buyer’s Guide. This launch reinforces BYD’s position as a dominant force in Australia’s rapidly evolving electrified vehicle market.