Australia's Electric Vehicle Market Highlights in Five Vital Charts
In the Australian automotive landscape, the electric vehicle (EV) sector has experienced a mix of growth and challenges throughout 2025.
The first half of the year saw a slight dip in EV market share compared to the same period in 2024, with EVs accounting for 7.6% of new car sales, amounting to 47,230 units [1]. However, June saw a significant spike, with EV penetration reaching 15% of new vehicle sales, thanks to a recovery in Tesla's performance and strong sales from BYD's plug-in hybrids [2].
Tesla, a long-standing market leader, experienced fluctuating sales throughout the year. While the Model Y topped the EV sales charts in the first six months, July saw a dramatic drop in sales, with only 555 units sold compared to thousands in previous months [1][3]. This volatility had a ripple effect on the overall market momentum.
Competition from emerging players, such as BYD, played a significant role in shaping the market dynamics. BYD's Sealion 7 SUV and PHEV offerings gained substantial market share, even outselling Tesla in certain months, like July 2025 [1][3].
External factors also influenced the EV market's performance. The rise in petrol prices, from AU$1.57 to AU$2.25 per litre, due to geopolitical tensions, contributed to growing interest in electrified vehicles, encouraging consumers to consider EVs despite some monthly sales dips [2].
Government and market factors also played a role. The recent end of Fringe Benefits Tax exemptions for PHEVs did not significantly impact their sales, and new regulations like the New Vehicle Fuel Efficiency Standard might push EV uptake higher moving forward [2]. Additionally, lower interest rates have boosted overall vehicle sales, including EVs [4].
As we look ahead, the Australian EV market continues to evolve, with shifting consumer preferences, increasing competition, and external economic pressures all contributing to its unique trajectory.
[1] Source: Australian Bureau of Statistics [2] Source: Electric Vehicle Council [3] Source: Federal Chamber of Automotive Industries [4] Source: Reserve Bank of Australia
Cars and technology merged in the Australian automotive landscape, with the electric vehicle (EV) sector witnessing a fluctuating trend in 2025. Competition from emerging players like Tesla and BYD, offering electric vehicles and plug-in hybrids, significantly shaped the market dynamics, resulting in shifts in consumer preferences towards electric-vehicles as a lifestyle choice.
