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Electric vehicles are claiming an increasing share of Australia’s new-car market, showing a dramatic shift away from petrol.
VFACTS data shows battery electric vehicles accounted for a record 20% of all new vehicle sales during May. Electrified vehicles more broadly – including battery electric vehicles, conventional hybrids and plug-in hybrids – represented 46% of sales.
For the first time ever, an electric vehicle was the best-selling car in Australia in May, outselling previous favourites Ford Ranger, Toyota HiLux and RAV4.
Federal Chamber of Automotive Industries Chief Executive Tony Weber said the results showed buyers were increasingly adopting lower-emission technologies. “The shift is particularly evident in the SUV segment, where consumer preferences are changing rapidly,” he said. “Today’s SUV buyer is increasingly choosing hybrid, plug-in hybrid and electric options.”
Electric Vehicle Council CEO Julie Delvecchio said record EV sales suggested more Australians were finding electric vehicles suited their needs. “We know Australians buy cars that save them money, suit their lifestyle and perform well,” she said.
Why EVs are becoming more attractive
Two federal policies are helping support the transition. The Electric Car Discount reduces the cost of eligible electric vehicles by removing fringe benefits tax from qualifying salary-packaged EVs. The New Vehicle Efficiency Standard is designed to encourage carmakers to supply more fuel-efficient and lower-emission vehicles to Australia.
Ms Delvecchio said these policies had helped create “more models, more affordable prices, more choice”.
EVs can offer lower running costs, reduced emissions and a quieter driving experience. However, they may not suit everyone. Purchase prices can still be higher than comparable petrol cars, charging access varies by location and long-distance drivers may need to plan trips more carefully.
Traditional petrol and diesel vehicles, meanwhile, can still appeal to buyers who want lower upfront costs, familiar technology, fast refuelling and broader model availability. However, running costs can be higher, particularly when fuel prices rise.
The key is to choose a vehicle and loan structure that suits your budget, driving habits and long-term plans.
If you’re thinking about buying an electric, hybrid or traditional vehicle, contact us to compare finance options and work out a loan structure that suits your situation.
