Australia Witnesses Strong Growth in EV Sales in 2024, But Faces a Slow Start in 2025

Australia’s electric vehicle (EV) market reached a milestone in 2024, recording a total of 114,273 EV sales, reflecting a 17% year-on-year increase. Of these, Battery Electric Vehicles (BEVs) made up the lion’s share with 91,293 units, while Plug-in Hybrid Electric Vehicles (PHEVs) contributed 22,980 units.

The top-performing models driving this surge included the Tesla Model Y (21,253 units), Tesla Model 3 (17,094 units), and MG MG4 (6,934 units), followed by popular models from BYD, BMW, Volvo, and Kia. Notably, electric cars accounted for 99% of BEV sales, dominated by medium SUVs and hatchbacks, which together comprised nearly 65% of all new BEV sales.

Despite this positive trend in 2024, 2025 began with a sharp dip, with BEV sales declining 57% in January and February compared to the same period last year. Experts suggest the rise in hybrid vehicle purchases may be impacting BEV demand.

On a regional scale, the Australian Capital Territory (ACT) led the nation with 21.8% of new vehicle sales being electric, followed by Tasmania (9%) and New South Wales (9%).

To support this transition, governments at both federal and state levels have introduced various incentives—including rebates, tax exemptions, and zero-interest loans—to make EVs more accessible. The Federal Government’s National Electric Vehicle Strategy, launched in April 2023, aims to create a strong policy framework that includes a New Vehicle Efficiency Standard, an expanded EV charging network, and the establishment of the Net Zero Economy Agency (NZEA) to drive a coordinated transition.

Australia currently boasts 1,059 fast and ultra-fast charging sites, with New South Wales (294) and Victoria (268) leading infrastructure deployment. Meanwhile, the ACT Government is actively working towards its goal of 180 public EV chargers by 2025.

With the nation targeting 1 million EVs on the roads by 2027 to align with its climate goals, stronger policies, improved infrastructure, and competitive vehicle offerings will be key to sustaining long-term growth.

About Eninrac Consulting:
Eninrac is a leading market research and consulting firm specializing in clean energy, electric mobility, infrastructure, and sustainability transitions.

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