BYD Atto 2 wins Best Electric Vehicle Under $40K

The BYD Atto 2 has risen to the top of its class in the Best Electric Vehicle Under $40K category in the Drive Car of the Year 2026 awards.

With a growing selection of cheap electric cars entering Australia’s new-car market, the decision for buyers is harder than ever.

Finding the right mix of comfort, quality, and included features is at the heart of a value-for-money choice.

While it’s often easy to think of an electric powertrain as ‘simpler’ compared to a combustion engine, getting the balance of performance, refinement, and day-to-day useability just right can still be a challenge.

The BYD Atto 2 and Atto 3 put their sibling rivalry to the test this year, alongside the Hyundai Inster.

While Hyundai showcased daring design, BYD highlighted technology and sophistication as leading talking points.

Although all three made a strong case, the new BYD Atto 2 demonstrated how far the segment has advanced in a short time.

Drive's pick: Atto 2 Premium priced from $35,990 plus on-road costs.

It feels like BYD really went over the Atto 2 with a fine-toothed comb, making sure the lessons learned from the models that launched before it were attentively finessed in this car.

From the just-right city-centric exterior dimensions, to the surprising amount of interior space inside, BYD has matured quickly into an automaker driven by customer feedback.

Some of the more unusual features from the larger Atto 3 have been left behind, so there are no gimmicks inside. Instead, quality plastics, soft-touch surfaces, and sturdy touchpoints make the affordable Atto 2 feel like it could be from a larger and more expensive vehicle class.

While the 345km WLTP range claim won’t set new driving distance records, the 51kWh battery is sized with urban use and achievable regular home charging in mind, as a sensible compromise.

With 130kW and 290Nm from the single electric motor, the Atto 2 can dive into torrential city traffic without breaking a sweat.

Steering is quick and light enough to make fast-paced three-point turns and enclosed parking citations effortless, but out on the open road, the Atto 2 maintains ride comfort and refinement. Never feeling out of place, either in town, or away from built-up areas.

The peace of mind of a six-year/150,000km warranty and capped-price servicing also helps balance out ownership and provide some surety.

Factor the Atto 2's feature list, which includes 360-degree parking cameras, a panoramic sunroof, electrically-adjustable front seats with heating and ventilation, eight-speaker audio and a 12.8-inch touchscreen, and the value really comes into focus.

And those are just the extras included on the Premium. All Atto 2s come with LED head- and tail-lights, vehicle-to-load power compatibility, adaptive cruise control, traffic sign recognition, lane-keeping assist, autonomous emergency braking, and more.

From $35,990 plus on-road costs, the Atto 2 Premium offers standard equipment that’s often only available at much greater cost on rivals, or in conjunction with larger or more expensive models, making the value equation almost unassailable.

Kez Casey migrated from behind spare parts counters to writing about cars over ten years ago. Raised by a family of automotive workers, Kez grew up in workshops and panel shops before making the switch to reviews and road tests for The Motor Report, Drive and CarAdvice.

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