More than 157,000 EVs hit Australian roads last year, a record high, yet the nation needs 240,000 sales in 2026 to meet emissions targets, according to Electric Vehicle Council CEO.
What’s happening: Electric vehicle sales in Australia increased 38% in 2025, with more than 157,000 EVs sold throughout the year. EVs now account for 13.1% of all new car sales, up from 9.6% in 2024.
Why this matters: Industry leaders warn that continued growth depends on stable government policies, including the Electric Car Discount scheme currently under review ahead of the Federal Budget.
The Electric Vehicle Council has released annual sales data showing electric vehicles achieved their strongest year yet in Australia, with a 38% rise in sales and a record-breaking December finish.
December saw 16,303 EVs sold, capturing 16.7% of the new car market, the highest monthly share ever recorded. Of these, 10,384 were battery electric vehicles and 5,919 were plug-in hybrids.
For the full calendar year, battery electric vehicle sales exceeded 100,000 for the first time, reaching 103,300, whilst plug-in hybrid sales almost doubled to 53,484.
Julie Delvecchio, CEO of the Electric Vehicle Council, said the figures demonstrate electric vehicles have moved from niche to mainstream.
“The annual scorecard is in, and a 38 per cent annual jump in sales shows an undeniable shift towards EVs,” Ms Delvecchio said. “Australians are choosing electric vehicles in record numbers because they are cheaper to run, cleaner and quieter.”
The growth brings Australia’s total electric vehicle fleet to more than 454,000 vehicles, with EVs now representing 13.1% of new car sales compared to 9.6% the previous year.
efunMs Delvecchio said Australian buyers are responding to improved vehicle choice and charging infrastructure, with over 150 EV options now available across popular segments.
“Australians are doing the sums and seeing they can save money, choose from over 150 EV options in popular segments with improved range and charging access,” she said.
NSW passes 100,000 milestone
The momentum is particularly evident in New South Wales, which recently passed 100,000 registered electric vehicles. The state’s EV fleet is collectively saving an estimated 121 million litres of petrol annually, equal to nearly 145,000 tonnes of CO2 emissions.
Minister for Climate Change and Energy Penny Sharpe said NSW drivers are leading the national shift.
“NSW drivers are embracing EVs in record numbers, and we are proud to be leading the way in making clean transport accessible, affordable and convenient for everyone,” Ms Sharpe said. “From local kerbside charging to fast chargers along our highways, we’re making it easier than ever for NSW drivers to go electric.”
The NSW Government has invested $96 million in EV charging infrastructure grants since April 2023, funding close to 3,300 new chargers at more than 1,200 sites across the state, including service stations, regional visitor centres, supermarkets and residential streets.
Savings flow to households
Research conducted by the Electric Vehicle Council with the University of Sydney shows most EV drivers cut their fuel costs by more than 60%, translating to household savings of approximately $1,500 annually when using electricity rather than petrol.
“Our research with the University of Sydney shows most EV drivers cut their fuel costs by more than 60%, so congratulations to those NSW drivers leading the shift,” Ms Delvecchio said.
The environmental impact is already substantial. NSW’s 100,000 EVs alone cut emissions by an amount equal to the annual output of 32,000 homes, or 4,000 Sydney to Melbourne flights.
Minister for Roads and Regional Transport Jenny Aitchison said infrastructure investment is critical to supporting continued growth.
“Hitting 100,000 EVs is a huge step towards a cleaner, cheaper and fairer transport future for NSW, and the Minns Labor Government is proud to back it in,” Ms Aitchison said. “Whether you live in our cities or our regional communities, we are rolling out chargers that give drivers the confidence to go electric.”
Member for Camden Sally Quinnell highlighted growing adoption in Western Sydney, where families are choosing EVs to reduce both pollution and household expenses.
“In Camden and across Western Sydney, we’re seeing more families choose EVs, cutting pollution and adding savings to the household budget,” Ms Quinnell said.
Policy support crucial
However, Ms Delvecchio cautioned that momentum isn’t guaranteed without consistent policy support across the nation.
“While 2025 has been a record year, Australia cannot afford to take its foot off the accelerator,” she said. “Australians are choosing electric vehicles in record numbers, but we know to stay on track with the Government’s 2035 emissions target, we need to increase EV sales to at least 240,000 new vehicles in 2026.”
The Electric Vehicle Council pointed to the Electric Car Discount as a key driver of uptake, particularly for working households and fleets. With the scheme under review ahead of the Federal Budget, the organisation emphasised the importance of maintaining support.
“With the Electric Car Discount review expected to feed into the next Federal Budget, these figures underline how important it is that the scheme continues to support affordable access to electric vehicles at a pivotal point in our uptake journey,” Ms Delvecchio said. “With Budget decisions approaching, now is the time to build, not brake, EV uptake, and keep savings flowing to Australian households.”
Ms Delvecchio encouraged drivers considering their next vehicle purchase to explore electric options, noting the combination of cost savings and environmental benefits.
“If you’re thinking about what your next car is, try an EV, they’re cheaper to run, cleaner for our streets, and better on the road,” she said.
The NSW Electric Vehicle Strategy outlines the state’s roadmap for increasing EV adoption, expanding charging infrastructure and reducing transport emissions, the second largest source of greenhouse gas emissions in NSW.
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