CEFC backs cheaper Hyundai, Kia EV loans with AUD $60m

Clean Energy Finance Corporation has committed up to AUD $60 million for a discounted electric vehicle finance program with Hyundai Capital Australia.

The program focuses on reducing the upfront cost of EV ownership for eligible customers buying new battery electric vehicles from Hyundai and Kia. It applies to vehicles priced below the luxury car tax threshold.

Hyundai Capital Australia, the Hyundai Motor Group finance arm in Australia, will offer discounted rates under the arrangement. The parties said households and small businesses would qualify for the offer, alongside business and fleet buyers referenced in the announcement.

Finance terms

Eligible customers could receive a finance rate reduction of at least 0.5 percentage points and up to 1.0 percentage point across the Hyundai and Kia range of eligible EVs.

The organisations provided an example of how that reduction could flow through to repayments. On a loan of AUD $70,000, a 1.0 percentage point interest rate discount over five years could save more than AUD $1,900 in interest costs.

CEFC said the program structure uses its capital to support the discounted rate through Hyundai Capital Australia. The offer targets new, fully electric vehicles rather than hybrids or plug-in hybrids.

Grid links

The investment also ties to plans for vehicle-to-grid integration. CEFC said EV models with vehicle-to-grid functionality can operate as mobile batteries.

Those vehicles can charge from the grid and also discharge electricity back to the grid. CEFC said this creates additional options for customers and aligns EV adoption with electricity system changes.

Vehicle-to-grid remains at an early stage in Australia. It relies on compatible vehicles, charging hardware, and regulatory settings that govern how energy exports work and how customers receive credits or payments. CEFC's statement positioned Hyundai as a participant in that technology direction.

Market push

CEFC framed the initiative as part of a broader shift in road transport, with finance costs seen as a barrier for some buyers. Australia's EV market has grown in recent years, although affordability remains a central theme in policy and industry debate. The luxury car tax threshold has become a practical dividing line for some EV incentives and financing offers.

The release also referenced work by the Climate Change Authority on the scale of EV uptake implied by national emissions pathways. It said the authority estimates that the lower end of a 62% to 70% emissions reduction pathway requires "putting more than 20 times the number of battery electric passenger vehicles on the road than there are today" and cited a figure of "over 5 million EVs".

CEFC invests government-backed capital into projects and programs connected to emissions reduction. It said it has access to more than AUD $33 billion from the Australian Government and that it invests with an objective of delivering a positive return for taxpayers.

"Hyundai Motor Group is bringing a growing range of innovative EVs with advanced technology to the Australian market, and can help more households and small businesses get behind the wheel of an EV sooner." said Richard Lovell, CEFC Executive Director – Debt Markets

"By cutting finance costs, we're not only making these vehicles more accessible, we're also supporting Hyundai's leadership in technologies like vehicle-to-grid, which can turn EVs into mobile batteries and strengthen our energy system. This investment is working to drive down emissions while giving Australians smarter, more thoughtfully designed transport options," said Richard Lovell, Executive Director - Debt Markets, Clean Energy Finance Corporation.

Hyundai Capital Australia said the finance discount responds to customer sensitivity around total ownership costs, particularly at the point of purchase where loan rates and deposit size affect the monthly payment.

"Electric vehicles are an important part of Australia's mobility future, but cost can be a barrier for many customers. Working with the CEFC allows us to offer discounted finance on eligible Hyundai Motor Group EVs, making electric vehicle ownership more achievable for Australian customers," said Shin.

The program will run through Hyundai Capital Australia for qualifying vehicles and customers under its credit processes, with the finance discount applying within the stated range of 0.5 to 1.0 percentage points.