But the price gap between BYD's Dolphin, which is set to launch on the Gold Coast on Thursday night, and the entry-level MG4 electric hatchback announced days earlier is just $100.
The electric vehicle price battle comes with a Roy Morgan survey finding 548,000 Australians intend purchasing a battery-powered car in the next four years - an increase of more than 1200 per cent since 2019.
BYD revealed the price of its small electric car would be the second to locally break the $40,000 barrier with a price tag of $38,890.
EV Direct chief executive Luke Todd told AAP the lower price of electric vehicle ownership, along with state-based incentives, would disrupt the automotive market in Australia.
"We believe that today is the day the dial changes," he said.
"When you can buy a high-quality EV, a five-seater ... that is more price competitive than a petrol equivalent, we believe that heralds the EV era that's been coming for some time."
The BYD Dynamic Dolphin, which is expected to feature a 12.8-inch touchscreen, adaptive cruise control and 426km range, will go on sale at 8pm, with models arriving in Australia late this year.
Vehicle shortages were not expected, Mr Todd said, as the company could produce 5000 a month for the Australian market alone.
BYD's announcement comes three days after MG revealed the price of its hatchback would also break records at $38,990 when it arrives in August.
Both launches could help to fuel a growing electric car market, which Roy Morgan research found would pick up speed in the coming years.
More than half a million Australians planned to purchase an electric car by 2027, chief executive Michele Levine said, which represented a huge increase from 2019 when 41,000 motorists expected to buy an EV.
"Electric vehicles have come a long way in a short time," she said.
"Men have been the early adopters when it comes to electric vehicles but in the last two years the fastest growth for intention to purchase electric vehicles has come from women - up over 480 per cent."
But the research found one electric car brand dominated purchase intentions in Australia, with two thirds of potential buyers planning to buy a vehicle from Tesla.
The US company currently leads electric vehicle sales in Australia and has challenged traditional automakers, with its Model Y becoming the third most popular vehicle sold in May 2023, according to the Federal Chamber of Automotive Industries.
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