EV Sales Surge 63 Percent in Australia, Narrowing Hybrid Lead

This was fuelled by more model options, cheaper prices, and an expanding charging network.

A charging device for a Nissan Leaf vehicle is seen in Melbourne, Australia, on July 11, 2019. Michael Dodge/Getty Images

Electric vehicle (EV) sales in Australia have reached record levels in the June quarter, with 29,244 battery EVs sold—up from 17,901 in March, marking a 63 percent jump.

EVs now account for 9.31 percent of all new car sales, compared with 6.29 percent in the previous quarter, according to the Australian Automobile Association report released on Aug. 14.

NRMA spokesman Peter Khoury said the increased range of models, more affordable prices, and greater charging availability are key drivers.

“People are still in the market for new cars and they’ve just got more variety than we’ve ever had before,” he said.

Combustion and Hybrid Trends

Petrol and diesel vehicles remain dominant, with 226,306 units sold in the June quarter, a 9.9 percent increase, although their market share dipped slightly to 72 percent.

Hybrid sales fell 0.6 percent to 46,732—the lowest since early 2024 at 14.9 percent.

Plug-in hybrids dropped 13 percent to 11,902.

Hybrids have outsold battery EVs for the past eight quarters, but the latest figures show battery EVs narrowing the gap.

Road Tax Debate

EV sales have surged since 2022, boosted by federal and state incentives, including stamp duty exemptions and registration discounts.

However, the Productivity Commission, in an Aug. 5 interim report, has called for phasing out Fringe Benefits Tax exemptions and other state-based perks for EVs, arguing they overlap with the new national efficiency standard.

Meanwhile, Federal Minister Tanya Plibersek and Coalition Senator Jane Hume have both backed a road-user charge for EVs, arguing it is needed to fund long-term road maintenance as fuel excise revenue declines.

“I think it’s sensible for the states and territories to look long-term at what they do, to make sure that there’s enough money to build the roads that people want to drive on,” she told Seven’s Sunrise program on Aug. 11.

Coalition Senator Jane Hume agreed, arguing that the fuel excise is “a shrinking tax base” and one of the few taxes specifically allocated to road maintenance.

EV Range Testing Results

The Australian Automobile Association (AAA)’s first real-world EV range tests, released on Aug. 6, found all five models underperformed against lab ratings by between 5 and 23 percent.

The best performer was the 2024 Smart #3, which delivered 432 kilometres—23 kilometres, or 5 percent lower than its lab-tested figure.

Khoury said these results underline the need for transparent performance data but do not appear to have dented public enthusiasm.

“People are still in the market for new cars and they’ve just got more variety than we’ve ever had before,” he reiterated.