Summary
- Global electric vehicle sales increased by 25-30% in 2024, but Australia’s penetration rate stayed at 8-10%
- Price wars in Australia led to significant drops in the prices of electric vehicles, making them more affordable
- The Australian market saw an influx of newer, cheaper, and better-equipped electric vehicle models, with more expected to enter in 2025
- Despite the introduction of fuel efficiency standards and increased competition, the penetration rate of electric vehicles in Australia remained stagnant
- In 2024, Australia sold a record high of 114,000 new electric vehicles, with the Tesla Model Y being the top-selling EV with 21,253 units sold.
Article
In 2024, global electric vehicle sales increased by 25-30%, but Australia’s electric vehicle market remained stagnant at around 8-10% penetration. Despite the launch of numerous new electric models and price wars among manufacturers, the market share did not increase. With new, cheaper, and better-equipped electric cars entering the Australian market weekly, older models like the MG ZS EV and Great Wall Ora are expected to see significant price reductions. The introduction of new models like the Volkswagen family – Skoda Enyaq, ID.4, and Cupra Tavascan – has added to the growing variety of electric vehicles in Australia.
In the past year, a variety of new electric vehicles, including the Jeep Avenger, Leapmotor C10, Chery Omoda E5, Kia EV9 and EV6 GT, Hyundai Ioniq 6, and others, have entered the Australian market. Despite this influx, the penetration rate of electric vehicles in the country remained flat at 8%. The price wars and competition among manufacturers have not significantly impacted the overall market share. Additionally, discussions about the future of electric vehicles in Australia have been influenced by political debates and concerns over security issues related to Chinese-made electric vehicles.
In 2024, Australia saw record high sales of electric vehicles, with approximately 114,000 new EVs sold, including 91,000 battery electric vehicles and 23,000 plug-in hybrid electric vehicles. The top-selling EVs in Australia included the Tesla Model Y, Tesla Model 3, MG4, BYD Seal, and others. Despite the growth in EV sales, the overall share of electric vehicles in the Australian market was still relatively low. The government’s introduction of fuel efficiency standards and the influx of newer, cheaper electric vehicles may contribute to further growth in the market.
While electric vehicle sales growth slowed in Australia in 2024 compared to the previous year, there was still a 4.7% increase in sales, reaching 91,292 units and capturing a 7.4% share of total industry sales. The slowing sales of Tesla EVs were a contributing factor, but the arrival of new models in 2025 is expected to drive further growth in the market. The discussion around electric vehicles in Australia has been influenced by media FUD (fear, uncertainty, doubt) but the implementation of fuel efficiency standards and the increased competition in the electric vehicle market are poised to accelerate the adoption of electric vehicles in the country.
The future of electric vehicles in Australia looks promising with the availability of newer, cheaper electric models and the fierce competition among manufacturers. The government’s commitment to fuel efficiency standards and efforts to expand the range of electric vehicle options for consumers are positive developments for the industry. As the market continues to evolve and more electric vehicles become available, the prospects for electric vehicle adoption in Australia are expected to improve.
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