Mitsubishi Motors has confirmed that its all-new ASX VR-e battery electric vehicle (BEV) will launch in Australia and New Zealand in 2026, marking a significant re-entry into the pure-electric passenger vehicle market for the Japanese automaker. The announcement, made on August 18, 2026, positions the ASX VR-e to compete in the highly contested small SUV segment, where demand for EVs continues to accelerate across the country.
This move comes as the Australian electric vehicle market experiences unprecedented growth, with July 2026 recording 23,510 BEV sales, representing 21.7% of the total new car market. The introduction of the ASX VR-e aims to capitalise on this surge, offering consumers another option in a segment increasingly dominated by new entrants.
A Strategic Partnership for Electrification
The ASX VR-e will be supplied on an Original Equipment Manufacturer (OEM) basis by Foxtron Vehicle Technologies Co., Ltd. (Foxtron), a subsidiary of the Foxconn Group. This strategic partnership allows Mitsubishi to leverage Foxtron’s electric vehicle platform and manufacturing capabilities, accelerating its electrification roadmap for the Australian market. The collaboration highlights a growing trend in the automotive industry where established brands partner with EV specialists to bring new models to market more rapidly.
Mitsubishi Motors engineers have reportedly conducted extensive testing of the vehicle on local roads, implementing dedicated suspension tuning to ensure responsive handling and high road-holding performance tailored for Australian driving conditions. This focus on localisation suggests an intent to meet specific consumer expectations for ride comfort and dynamics.
Targeting Australia’s Growing Small SUV EV Market
The small SUV segment is a crucial battleground for EV manufacturers in Australia, with models like the BYD Atto 3 and Tesla Model Y currently leading sales in the broader SUV categories. While specific Australian pricing for the ASX VR-e is yet to be announced, its positioning in the small SUV segment suggests it will target a competitive price point, likely vying with established players and newer Chinese brands that have aggressively entered the market.
“The all-new ASX VR-e will enter the small SUV segment in Australia and New Zealand, where demand for BEVs continues to grow, particularly in urban areas.”
The ASX nameplate has a long history in Australia as a compact SUV, and the addition of the ‘VR-e’ designation aims to blend this heritage with modern electrified technology. The ‘VR-e’ is inspired by the high-performance Galant VR-4, with ‘e’ signifying electrification and advanced features.
Key Competitors in the Small EV SUV Segment
The ASX VR-e will face stiff competition from a range of existing and newly launched electric small SUVs. While full specifications for the ASX VR-e are pending, here’s a look at some current contenders based on reported drive-away pricing and range:
| Model | Starting Drive-away Price (AUD) | Estimated Range (WLTP) | Segment |
|---|---|---|---|
| BYD Atto 2 | From $35,337 | 345 km | Small SUV |
| GWM Ora 5 | From $33,990 | 435 km | Small SUV |
| Jaecoo J5 EV | From $36,990 | 402 km | Small SUV |
| Hyundai Inster | From $35,990 | 327 km | Small SUV |
| Chery E5 | From $37,990 | 430 km | Small SUV |
Note: Prices are approximate and may vary by state and current promotions. Range figures are manufacturer estimates (WLTP where available) and real-world performance may differ.
The arrival of the ASX VR-e will likely intensify competition, potentially leading to further price adjustments and increased feature offerings from rival brands. Consumers considering an electric small SUV in 2026 will have a broader array of choices, making it crucial to compare not just purchase price, but also running costs, charging infrastructure compatibility, and available rebates.
Impact on the Australian EV Landscape
Mitsubishi’s entry with a dedicated BEV is a significant indicator of the mainstream shift towards electrification in Australia. For years, the brand’s Outlander PHEV has been a popular choice for those seeking a step towards electrification, but a full BEV in a popular segment signals a stronger commitment. This move will add further momentum to the growing EV market, particularly for families and urban dwellers seeking practical, zero-emission transport solutions. With more models available, the choice for Australian consumers looking to transition to electric vehicles becomes even more compelling.
The ongoing expansion of public charging networks and the increasing availability of home charging solutions further support this transition. For those installing home chargers, understanding the various options and rebates remains key. Best Home EV Chargers in Australia 2026: Costs, Rebates & Key Considerations for Under $2,500
The broader adoption of EVs also has implications for energy management at a household level. Many Australians with rooftop solar are finding significant savings by charging their EVs at home during periods of high solar generation. This synergy between solar and EV ownership is a key driver for uptake, particularly in outer-metropolitan areas. The long-term cost savings of owning an EV, especially when paired with home solar, continue to be a strong incentive for buyers. Real Cost of Owning an EV in Australia 2026: Save Thousands Annually
As the market matures, the focus for consumers will increasingly shift beyond initial purchase price to total cost of ownership, including charging costs and potential for integration with home energy systems. Best Home Energy Monitoring Systems in Australia 2026: Unlock $1,000+ Annual Savings
Mitsubishi’s commitment to the ASX VR-e in Australia underlines the accelerating pace of the EV transition, offering a new, familiar badge in a segment ripe for electric disruption.