This record-setting year is largely fueled by a few key factors: better access to charging infrastructure, an expanding range of EV models at more competitive prices, and the ongoing availability of purchase incentives.
Electric vehicle (EV) sales in Australia soared to unprecedented heights in 2024, setting a new record that highlights a major shift in the country’s automotive landscape.
According to the Electric Vehicle Council (EVC), around 114,000 new battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) hit Australian roads last year—surpassing the previous record of 98,000 sales set in 2023.
This surge in EV sales marks an important milestone, with BEVs accounting for the lion’s share—roughly 91,000—while PHEVs made up about 23,000. Together, these vehicles represented 9.65% of all new car sales in Australia, compared to 8.45% in 2023. While these numbers are still relatively modest in the context of global EV markets, the trend is unmistakable: Australians are increasingly choosing electric over traditional internal combustion engine (ICE) vehicles.
The surge comes despite significant headwinds, including high interest rates and the ongoing cost-of-living crisis that has stretched household budgets. “Electric vehicle uptake in Australia has reached an all-time high, with nearly 114,000 EVs sold in 2024,” said Aman Gaur, Head of Policy, Legal, and Advocacy at the EVC. “This is incredibly encouraging, especially in a year when Australians were facing such financial pressure. The continued rise in demand for EVs shows that Australians want cleaner, more affordable transportation.”
This record-setting year is largely fueled by a few key factors: better access to charging infrastructure, an expanding range of EV models at more competitive prices, and the ongoing availability of purchase incentives. All of these elements have helped pave the way for what many see as the next phase in Australia’s automotive evolution.
A shift in consumer behavior
The rapid rise in EV sales suggests a significant shift in consumer attitudes towards electric vehicles. What was once considered a niche market for environmentally-conscious individuals or early adopters is now becoming mainstream. The fact that one in ten new cars sold in 2024 was an electric vehicle speaks volumes about how attitudes are changing across the country.
The growing popularity of EVs has not gone unnoticed by the automotive industry. Manufacturers, both local and international, are beginning to flood the market with a wider variety of electric models that cater to a broader range of budgets and consumer preferences. From compact city cars to SUVs and high-performance sports cars, the EV market is no longer just about small, high-end electric sedans.
For example, the Tesla Model Y continues to dominate as the best-selling EV in Australia, with 21,253 units sold in 2024. But it’s not just Tesla that is benefiting. New players such as BYD, with models like the Seal and Atto 3, are also making a significant impact. Local manufacturers, including Kia and MG, are seeing growing sales figures as well, especially with models like the Kia EV5 and MG MG4, both of which offer more affordable options for Australian buyers.
“Australians are responding to a wider choice of models that cater to a range of budgets,” Gaur said. “These vehicles are not only better for the environment but are now more accessible to everyday consumers looking for affordable, modern cars with lower running costs.”
Infrastructure and incentives
Behind the rising sales figures is a more robust infrastructure and supportive government policies. In many cities, the expansion of EV charging stations is making it easier for consumers to switch to electric cars without worrying about running out of power.
Government incentives have also played a key role in encouraging adoption, although there have been challenges. Some states withdrew incentives prematurely, potentially dampening the full potential of the market. Still, these setbacks have not been enough to stop the momentum. The federal government’s renewed focus on expanding charging infrastructure and introducing new incentives for EV buyers is expected to continue driving sales growth in 2025.
“One of the key factors driving EV adoption is the increasing availability of charging stations,” Gaur explained. “As charging infrastructure improves, more Australians feel confident making the switch to an electric vehicle. This is crucial for the next wave of EV owners, who need assurance that they won’t face ‘range anxiety’ or long waits to recharge their cars.”
Challenges and the road ahead
Despite the record-breaking sales in 2024, there are still significant challenges ahead. While Australia is making progress, it lags behind other developed nations in terms of EV adoption. To meet its climate goals and future-proof the automotive sector, the country will need to accelerate its transition to electric vehicles.
The introduction of the New Vehicle Efficiency Standard in 2025 is a promising step in the right direction, but experts say that Australia needs more. Continued investment in EV infrastructure, enhanced purchase incentives, and consistent, nationwide policies are all essential to ensuring the growth of the market. Additionally, tackling misinformation about electric vehicles and addressing concerns over battery production and disposal are critical for fostering broader acceptance.
Gaur also noted that while Australians are increasingly interested in EVs, the next step is to make them even more accessible. “We still have a lot of work to do, especially in ensuring that electric vehicles are affordable for all Australians, no matter where they live,” Gaur said. “This means lowering upfront costs and ensuring that EVs are a viable option for everyone, from city dwellers to rural residents.”
With 2024 behind us, all signs point to an even bigger year for EVs in Australia in 2025. Manufacturers are preparing to release new, more affordable models, and government incentives are expected to ramp up as the country works toward its climate targets.
“The momentum is building, and 2025 is shaping up to be a game-changer for EV adoption in Australia,” Gaur said. “With greater model availability, new pricing strategies, and improved incentives, we can expect to see even more Australians making the switch to electric.”
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