Hyundai Elexio: The EV Taking On Tesla and BYD
The Hyundai Elexio is here and it's gunning for Tesla and BYD. Here's what Australian salary earners need to know before adding it to a novated lease.
A new EV contender has arrived in Australia and it's stirring up genuine conversation. The Hyundai Elexio — reviewed by The Driven in May 2026 — is Hyundai's latest attempt to compete directly with Tesla and BYD on their own turf. The headline framing says it all: "Fighting China with China" — a nod to the fact that the Elexio is built on a platform designed to go toe-to-toe with the brands that have dominated Australia's EV sales charts.
For PAYG employees considering a novated lease, the timing matters. The federal government's FBT exemption for eligible battery electric vehicles remains in place for employer-provided vehicles under the relevant income thresholds — meaning a car like the Elexio, if it qualifies, could be genuinely compelling on a post-tax cost basis. Whether it earns its place on your shortlist depends on how it stacks up on price, range, and real-world usability.
What this means for novated lease customers
The EV novated lease market in Australia is no longer just Tesla Model 3 versus everything else. BYD has taken serious market share, and now Hyundai is pushing back with a purpose-built competitor. More competition generally means better pricing, better features, and more negotiating leverage — all things that flow through into a novated lease deal.
If the Elexio is priced within the FBT exemption threshold for eligible EVs (according to current ATO guidance on the electric car FBT exemption, the vehicle's value must sit under the luxury car tax threshold for fuel-efficient vehicles — check the ATO's current guidance for the applicable figure), it becomes a zero-FBT vehicle in a novated lease arrangement. That means your employer pays no FBT and your pre-tax salary contributions cover the bulk of the running costs. The potential savings relative to buying the same car outright with after-tax dollars can be substantial — especially for mid-to-high income earners.
The practical consideration right now: the Elexio is newly launched and lease residual values, fleet pricing, and lender appetite will take a few months to settle. That's not a reason to ignore it — it's a reason to get your paperwork in order early so you can move quickly once pricing firms up.
Common questions
Does the Hyundai Elexio qualify for the EV FBT exemption?
For a battery electric vehicle to qualify, it generally needs to be a zero or low-emissions vehicle first provided to an employee on or after 1 July 2022, with a value under the luxury car tax threshold for fuel-efficient vehicles. Whether the Elexio meets that threshold depends on its confirmed on-road price — your novated lease provider should verify this before you sign anything.
How does the Elexio compare to the Tesla Model 3 or BYD Seal for a novated lease?
On paper, all three can attract the same FBT exemption treatment if they qualify on price. The real differences come down to residual value projections, which affect your monthly payment, and the fleet discount your broker can negotiate. A newer model like the Elexio may have less residual data available initially.
Can I novate an Elexio if my employer hasn't done EVs before?
Yes — novated leasing works for any employer willing to set up a salary sacrifice arrangement. The EV FBT exemption actually makes it easier to pitch to employers who were previously hesitant, because there's no FBT liability for them to manage.
Is now a good time to lock in a novated lease on a brand-new model?
There's a trade-off: you get early access to a competitive vehicle, but residual values and fleet pricing are less certain on launch. If you're not in a rush, waiting 3-6 months for the market to settle can lead to a better structured deal.
What running costs are typically bundled into a novated lease?
A fully maintained novated lease typically bundles registration, insurance, servicing, tyres, and charging costs into the pre-tax payment. For EVs specifically, home charging costs can often be included — ask your provider how they handle this.