The federal transport department issued a warning for all variants of the GWM Ora electric hatchback on Monday after confirming a software error created "the risk of serious injury or death".
The vehicle is one of the cheapest electric cars on the market in Australia and the recall comes just seven months after it arrived.
All 1659 GWM Ora vehicles in Australia will be affected by the recall, which has been blamed on a software problem.
"Due to to a programming issue, if the operator removes the charging cable without cancelling the charge, an electrical arc between the charging plug and the vehicle may occur," the recall notice said.
"If an electrical arc comes into contact with the operator or bystanders, it will increase the risk of serious injury or death."
A similar concern with the vehicle was raised by German motoring organisation ADAC in June after which the manufacturer issued a software update for the vehicle in Europe.
GWM will contact local Ora owners about the recall and update its software free of charge.
The hatchback is one of three electric vehicles on sale in Australia for less than $40,000, with a price cut just before launch bringing down its entry price to $39,990 plus on-road costs.
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