Along with a bunch of facts and figures, a new report on the state of electric vehicles in Australia in 2025 contains recommendations on how to put the pedal to the metal on EV uptake.
How Is Australia’s EV Uptake Tracking?
The Electric Vehicle Council’s (EVC’s) State of EVs 2025 report indicates 72,758 Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) were purchased in the first six months of 2025. This was up 24.4% on the same period in 2024 and a new record.
Electric vehicles accounted for 12.1% of all new car sales, up from 9.61% in 20241. In 2022, EVs made up less than 4% of new car sales in Australia.
There were 410,000 EVs in the national vehicle fleet as of September 2025 says the EVC.
Moving from famine just a few years ago to more a feast in terms of vehicle choices, 153 EV models are now available in Australia (94 BEVs, 59 PHEVs), up from 123 in June 2024. But there are still some segments where choice is lacking.
Infrastructure Charging Ahead
1,272 fast-charging locations are in place across the country (up 20% on June 2024) and 4,192 public charging plugs of ≥ 24 kW capacity — a 22% increase.
But Australians still primarily charge at home and while not included in the EVC’s report, hard-wired home EV charging options have also been improving over the past year. SolarQuotes’ home EV charger comparison page lists models and variants from dozens of brands, ranging in estimated price (hardware only) from $750 (ZJ Beny) to a touch over $2,000 for the Enphase IQ EV Charger 2.
While installation isn’t cheap — most will pay $1000 – $1,500 for installation on top of the hardware cost — a hard-wired home EV charger is faster and offers more control options than devices plugged directly into a power outlet; although these suit some EV owners. A smart hard-wired device is also a perfect companion for a suitably sized solar power system.
Accelerating Australia’s EV Uptake
Australia’s transport sector is currently the nation’s third largest emitter, accounting for around 22% of Australia’s emissions. According to the Department of Climate Change, Energy, the Environment and Water, passenger and light commercial vehicles alone account for 60% of our transport emissions and more than 10% of Australia’s total emissions.
The Federal Government recently announced its 2035 emissions reduction target — 62–70% below 2005 levels by 2035. This implies the need for 5 million EVs to be on the road by 2035 says the EVC. From 410,000 to 5 million in 10 years is a huge jump.
Looking at the SolarQuotes rebates and subsidies page, there’s currently not much in the way of incentives for electric vehicles except in the ACT, and aside from the national EV Fringe Benefit Tax Exemption (aka Electric Vehicle Discount); which is also under threat.
Also looming is an EV road user charge, the nature of which and timeline for implementation are still some way off.
“Just when we need to accelerate, states and territories have been pulling back EV incentives,” said Electric Vehicle Council CEO Julie Delvecchio. “No country has reached mass EV adoption without sustained government support so withdrawing it now risks stalling the momentum we desperately need.”
The Electric Vehicle Council is calling for:
- Maintaining the Electric Vehicle Discount until 2035.
- A date for a ban on new petrol and diesel car registrations.
- Incentives such as GST exemptions and energy bill credits.
The EVC’s State of EVs 2025 can be accessed here.
Footnotes
- According to the Australian Automobile Association’s Electric Vehicle Index, BEVs accounted for 7.87% and PHEVs 4.28% of new light vehicle sales in the first half of 2025. ↩
About Michael Bloch
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What needs doing won’t happen. Sales of new petrol and diesel (and perhaps even secondhand combustion clunkers) need to be banned, inside 5 years. We have no domestic car industry to protect.
None of that will happen because vehicles are so fundamental to far too many people’s identities.
Not once in all human history has a ‘revolution’ been a planned, staged, managed rollout of anything.
Another incentive would be cheaper power costs at commercial fast chargers which all seem to be three or four times the cost of the power to the provider.
And another the provision of slow chargers at locations where cars are parked for long periods like railway station and airport car parks.
As ever, prices will make the difference and we are very nearly there. I think that it is like how I was among the thousands ready to pounce on a home battery when a price threshold was crossed with the rebate scheme (<$500 per kWh installed or LCoS of 15c/kWh) – and not in the least surprised by the huge take-up of that scheme.
I am among presumably thousands who are waiting for a good little city runabout second car for under $30k new or under $20k used. I don't like the BYD Dolphin or a used Nissan Leaf, so I'm not there yet. But very, very close.
It is frustrating how the small, cheap end of the market is so slow, because that it is where a huge chunk of the potential EV buyers live.
Because of batteries' massive price drop and that an electric motor is relatively far simpler than the engineering marvel of modern, efficient ICE, it is only a matter of time.
Agree, really need more 2nd EV options, so close for me now, I work from home and just need something for general run about town every couple of days. Can’t justify a new EV – have never brought a new car in my life. But 2nd hand EV’s are still rare and overpriced.
The used EV market is funny, both good and bad. While you can get a car that was $45k two years ago for $35k, the new equivalent is also down to $35k with some – which encourages buying new. On the other hand, Tesla’s, especially, are going quite cheap and Nissan Leafs are under $20k but with some outdated charging ports; but overall you are right, supply does not match demand like we are used to with ICE cars – where about half of all purchases are used.
A regulated battery capacity assessment process for all used sales would help. As would some mandated government fleet purchases that cycle into used relatively quickly.
Sounds like we are both bound for an EV as our next purchase… soonish? Over to the market. I am hoping some manufacturers find they need a few more EVs out the door to square their NVES sums towards the end of the year.
We were in that same place two years ago – purchased a 2nd hand Nissan leaf – best decision we ever made. You will pickup a used 2017 or later with a 40Kwh battery for less than 20K and if you only plan on charging at home or not doing lots of long trips it is a perfect runabout.
If you wish to future proof it you can purchase Chademo to CCS2 adapters that will allow you to use the majority of fast chargers out there.
Craig
Have researched Nissan Leafs a lot, very tempting. I like their no frills approach to controls with minimal reliance on touch screens.
There’s a lot of scare mongering around the air cooled batteries in the aussie climate, but as far as I can tell the issue is with fast charging in the heat. If your granny charging uner cover, not so much a problem I believe.
OB,
The base model MG4 is about $33k new now, and the petrol savings shave $3k off that in a year on average – then after two years your cost is down to $27k. Just don’t test drive it until you’re ready, ‘cos it’s a dream to drive. (Their SUV had too much body roll for me.)
It has an LFP battery, which can give twice the cycle life of Li-Ion, and doesn’t need to be kept in the 20% – 80% SoC range for longevity. On only 100 km/h highway driving, my range is 290 km, not the specified 320 km, but air drag is a cube law, so that’s just physics.
I tow a light trailer with it, 65 km return, at 100 km/h on a heavy shopping trip.
(Dealer fitted towbar.)
It’s a bit more than a runabout, performance-wise definitely. They use them as taxis out here in Gippsland, doing 140 km return jobs, Sale – Bairnsdale. It’s a payback dynamo there, no question.
It’s 4 yrs to first real service = change battery coolant. Ten year warranty if dealer does it. (BYD’s service costs didn’t appeal to me.)
Michael,
You’re not kidding about the benefits of a level 2 home EV charger. After several overcast days, I put 39kWh into the MG4 yesterday, in just part of the day – off-grid, so night-time charging is limited by house battery size and competing loads. A granny charger could take 5 days to do the same, wasting sunshine all the way.
The cost of the charger is about 500 L of petrol, or 5,000 km of fossil-propelled driving – an ongoing dead expense for active polluters, a one-time charger investment for climate saviours.
And, yes, ample arrays enable the whole household’s pollution-free energy consumption. Yesterday hit a new optimum here; 57 kWh for the day. There seems to be more overcast days as the climate heats up, so a big grabby array and batteries may become increasingly necessary, to make up for low insolation some days.
An interest-free loan for BEVs (Not HEVs) would endow low cost & emissions-free commuting NOW, with the savings easing repayment. It’s win-win & easy.
I agree Erik. I intend to double my current 7.1kw three phase inverter/9.2kw of panels in the net6-12mths and add probably a 20kw Sigenergy battery with the charging module as there will soon be two dwellings on my property. I will remain on grid though.
One of the big challenges for the government in adding further incentives for EVs is the Opposition and its fossil fuel backers. Given the LNP is mired in infighting largely driven by the climate change denying right wingers, the government cannot get a united front with them on managing climate change. So the ALP is reluctant to expend valuable political capital when it needs to deal steadily with issues like the deficit, NDIS etc etc.
So overall I think the development of clear and substantial effort to increase responses to climate change and EV adoption in particular is a political challenge more than an economic and social one.
Patrick,
I’m not pushing off-grid, just stuck with it as it was *much* cheaper than extending the grid several km at my cost. There’s a 66kv line within 1 km, but a private transformer from that would have to hit the credit card pretty hard, and 1 km underground isn’t cheap either.
The grid is elsewhere still a cheap battery, reducing capital expenditure.
I like the charging rates achievable with the Sigenergy EV modules, and could easily cope with the reported overnight idle drain of their battery stack dc-dc converters. Ample PV arrays (fill the roof) totally cure such concerns.
Climate-aware engineer here, so very frustrated that today’s politics and consumer inertia are condemning our children to fires, floods, cyclone winds, and hundreds of millions of climate refugees within a few decades. (+2°C by 2035, +3°C by 2055, and +4°C by 2084, according to 5 reputable climate models.)
There may be mandatory ICE buybacks by 2035 – 2040, as the chocolate hits the fan.
All the FBT exemption does is boost available second hand EV’s in a few years time as businesses rotate fleets, it does nothing to incentivise a private vehicle buyer.
The proposed road user tax – the more they talk about it without any firm numbers on what it is actually going to cost potential EV buyers, or indeed how it will be collected – is an absolute wet blanket on those wavering on the idea of getting an EV.
Also, while EV’s are getting down into affordable range for normal home use, not so much for vehicles that need to tow. For me, a PHEV that will replace my existing tow vehicle for my boat will cost at least 20k more than than I can get an ice equivalent for. (Actually the ICE equivalent is technically better, but i only need the 2 tonne towing capacity the PHEV gives, not the 3 1/2 tonnes the ICE vehicle gives )
FBT exception applies to noviated lease purchases I believe?
Yes but here’s a fun fact, it doesn’t apply to vehicles that attract luxury car tax and even if you buy a used car, on which LCT has already been paid, you still don’t get the FBT exemption. Once a luxury car, always a luxury car.
Maddening when a Kia EV9 is the only thing with 7 seats under the LCT, but the base model doen’t have much towing capacity… it’s almost as if they plan to ruin your weekend.
the leased vehicle is still owned by the leasing company, and generally will go onto the second hand market when the lease expires.
Does nothing to incentivise private purchases of new EV’s.
You have the option to own the car outright at the end of the lease.
Hi Andrew,
Here’s a fun fact, FBT exemption doesn’t apply to vehicles that attract luxury car tax and even if you buy a used car, on which LCT has already been paid, you still don’t get the FBT exemption. Once a luxury car, always a luxury car.
Maddening when a Kia EV9 is the only thing with 7 seats under the LCT, but the base model doen’t have much towing capacity… and the 2.5 tonnes towing only comes with a luxury price tag… it’s almost as if they plan to ruin your weekend.
Well it incentivised us to get an EV on a novated lease instead of buying another petrol vehicle. When I did the numbers our EV is costing us less per month than the Mazda CX5 was costing us.
Yeah but you dont own it, the leasing business owns it. As i said in a few years when your lease is up they will cycle it into the second hand car market.
You have first option to own it after the lease is up. When the lease is written up the balloon payment is calculated up front (66% after 12 months, 47% after 36 months etc) and all you have to do is pay the balloon payment at the end of the lease and you own the car outright.
Several work colleagues have already done or are about to do this with the Model Y’s they leased back when the FBT exemption started back in 2022.
Just an idea to accelerate usage of the EV Fringe Benefit Tax Exemption.
Leasing companies negotiate exclusivity deals with corporate employers. This gives them no reason to compete on price and thus they are eating up a lot of the FBT exemption benefits. Much like Super Choice, we need Lease Choice legislation.
Great comments and ideas all.
I agree with the EVC assessment. We will never achieve the implied 5m EV’s required by just doing the same things and expecting the drop in EV pricing to do the rest. Governments are just kidding themselves and not willing to take the risk of politically hard decisions.
I do not have all the answers, but one just needs to look at Norway, a country that also exports fossil fuels. Their philosophy is that “bad” fuels need to subsidise “good” fuels. Today 98% of car sales are EVs.
Some examples of what they have done.
1. No 25% VAT/GST on most EV’s below a certain price.
2.. No petrol ute subsidies. Why do we need a RAM when there are other clean options, as an example?
3. Petrol excise. Increase this progressively, we are one of the lowest in the world.
4. Reduced rego costs. Some states here did this, and then dropped after just a few vehicles were sold.
5. Proliferate workplace, kerbside, parking garage with AC chargers.
Grow a pair, please!
Speaking of Norway … maybe we could do what they do and send most of our freight by electric rail, rather than by road.
“ Approximately 50 to 60 per cent of the goods between Oslo and the biggest cities of Southern Norway, such as Bergen, Stavanger and Trondheim are transported on rails. Between Oslo and Northern Norway, to the coastal cities of Bodø and Narvik, these numbers are up to 80-90 per cent”
from
https://www.railfreight.com/coronavirus/2020/03/20/freight-trains-in-norway-prioritised-over-passenger-traffic/?gdpr=accept
Or maybe we could look at some of the research that our people do eg. https://theconversation.com/we-compared-land-transport-options-for-getting-to-net-zero-hands-down-electric-rail-is-the-best-234092
BTW I’m an EV owner.
Well, as far as i can tell – “inland rail” is still touted to be completed by 2031.
But it hasn’t been in the news much since Snowy 2 seemed to take it’s crown as the newsworthy government white elephant project, so who knows…
Chris O’Rourke: – “Speaking of Norway … maybe we could do what they do and send most of our freight by electric rail, rather than by road.”
Approximately 11% of Australia’s heavy railway network is electrified, which equates to about 3,488 route-kilometres. The majority of the electrified lines are in urban areas, particularly for passenger services, while most long-distance and freight lines rely on diesel power.
Heavy rail in Australia uses two primary voltages: 1500 V DC for older or established suburban networks like Sydney and Melbourne, and 25 kV AC for newer and main lines, particularly in Queensland and Adelaide. The specific voltage depends on the location and when the line was electrified, with 25 kV AC now an international standard for new systems.
Hi Geoff, I know about the different voltages and you would know that in some places locomotives are “wired” to accept 3 levels and move from one country to another with ease. My point was that no amount of EVs (cars and trucks) on the road will ease the climate crisis – and other issues – as bringing our rail networks into the 21st Century. Where I live in NSW, the last realignment of the rail line was in 1922, and that was to make it longer and with more curves!
Chris O’Rourke: – “I know about the different voltages and you would know that in some places locomotives are “wired” to accept 3 levels and move from one country to another with ease.”
The Eurostar electrical supply voltages are:
• 25kV 50Hz AC (used in the UK, France, and the Netherlands);
• 3kV DC (used in Belgium with dedicated separate pantographs);
• 1.5kV DC (used in the Netherlands, some train sets only);
• 750V DC third rail (Southern region UK).
http://www.railfaneurope.net/tgv/eurostar.html
The Eurostar TGV was arguably the most complicated & sophisticated train ever to ride the rails when services began in Nov 1994.
Australia doesn’t have any freight multi-mode electrical supply locos.
The New South Wales R sets, replacing the XPT, XPLORER and Endeavour train fleets, allows them to run on both electricity (with 1.5 kV DC pantograph pick-up) and diesel-electric.
https://www.transport.nsw.gov.au/projects/current-projects/regional-rail
The Plug Priming Initiative involves the construction of a network of EV charging parks of 20 by 50kW type 3 chargers throughout the populated areas of Australia such that EVs would not have to drive more than 100 km between charges. Copilot estimates this would require between 100 and 150 parks and the chargers at $25K each would cost between $50 and $75 million. This estimate excludes land acquisition, grid upgrades, maintenance, and operational costs. If grid infrastructure needs significant reinforcement or solar + battery storage is added, costs could increase substantially. Allowing three times the cost of the chargers for ancillary costs would produce a figure of between $200 million and $300 million.
The network would remove the last argument against EVs, that of range anxiety. This would accelerate the goal of 50% EV penetration which would result (according to CoPilot) in foreign exchange savings of $18 billion per year, increase national energy security and avoid large gre
My sense is that EV technology has not quite matured. Better batteries will be available in the next year or two, and EV ownership should take off then.
I’m not keen on subsidies, which often benefit the upper middle classes. I’m more in favour of taxes on bad things, like fossil fuels. So I’d go with a carbon tax if I were dictator for life.
Nicholas Reid: – “Better batteries will be available in the next year or two, and EV ownership should take off then.”
CATL’s Naxtra sodium-ion battery is a new generation of battery technology with an energy density of 175 Wh/kg, approaching that of lithium iron phosphate (LFP) batteries. Its key advantages include a lower cost, excellent performance in cold temperatures (down to -40 °C), a 15-minute fast-charging capability (80% state of charge), and an impressive lifespan of over 10,000 charge cycles or 3.6 million miles. Mass production is expected to begin in late 2025, and mass vehicle integration in 2026
https://www.youtube.com/watch?v=UiIgLY50TQc
https://www.evinfrastructurenews.com/ev-technology/catl-s-sodium-ion-ev-battery-passes-china-s-new-certification-with-15-minute-fast-charging-capability
Thanks Geoff, saw that development coming through, if it comes from CATL, it seems imminent. Great news.
Still needs Government to penalise fossil fuels, as there are so many lobbyists, bloggers, youtubers on the oil industry payroll spreading disinfo who will find an argument against any new dev (inlcuding Sodium).
So the $$$ need to talk to the average punter by a really strong margin.
David Levine: – “Still needs Government to penalise fossil fuels…”
The AFR published on 15 Oct 2025 an article by foreign affairs and defence correspondent Michael Read, headlined ‘Country could shut down’: Australia has just 28 days of petrol.
The headline in the AFR article misses the critical fact that diesel fuel, NOT petrol, is the premier liquid fuel resource.
Rex Patrick reportedly said:
Look familiar? Does Australia need to learn the hard way?
https://www.solarquotes.com.au/blog/ev-ruc-australia-mb3264/#comment-1727842
The various layers of Government buy all their cars at a big discount, and sell them after a couple of years at a profit! So I’ve been buying ex-government cars at Auction for many years, getting nearly new cars at a fair discount.
I would like to suggest that all layers of government use EVs as standard.
If Federal, State and Local Government all use EVs it would send a clear message.
This would have several big benefits.
It would be seen as “Putting your money where your mouth is!” Setting a good example!
It would be visible proof that the government knows they are capable reliable vehicles.
They would soon appear in the Auction listings, and easily available to the general public.
The Carbon Emissions would drop quickly!
It has to happen eventually. Why not NOW?