Australia’s Electric Vehicle Sales Lag Behind Global Growth
Australians are falling behind the rest of the Western world when it comes to embracing electric vehicles (EVs). While global sales continue to grow, with the industry on track to surpass 20 million cars in 2025 – more than a quarter of all cars sold worldwide – Australia is ‘punching below its weight.’
The temptation might be to blame the recent public backlash against Elon Musk and Tesla, but Australians actually have no fewer than 90 EV models to choose from, including six from Chinese-owned BYD, which is aggressively expanding in the market. Despite this, EV sales growth is not meeting expectations. The Federal Chamber of Automotive Industries (FCAI) had forecast that EVs would make up 14% of the Australian market in 2023, but as of April, they accounted for just 5.9% of total car sales.
In contrast, China leads the way with 50% of new cars sold being electric, and Europe has seen EVs reach 20% market penetration. The International Energy Agency has significantly downgraded its expectations for EV adoption worldwide over the next five years. In Australia, Tesla remains the largest EV seller, but its dominance is waning as sales have fallen both locally and globally.
The initial wave of early adopters, who were less price-sensitive, has petered out. Now, car manufacturers must work harder to attract the next wave of EV buyers, even as prices become more competitive. According to the Royal Automobile Club of Victoria, affordable EV models are now available at prices comparable to top-of-the-range Toyota Corolla, Mazda3, or Hyundai i30 models.
However, demand will remain constrained if EVs continue to be less convenient than petrol guzzlers. FCAI chief executive Tony Weber identified the lack of recharging infrastructure as a major obstacle to new EV sales. Australians’ preference for larger cars, which are harder to electrify, is another challenge. Despite being known for embracing new technology and discussing climate change, Australia’s momentum on EVs appears to have stalled.
