Australia has recorded its strongest quarter yet for electric vehicle (EV) sales, with the Electric Vehicle Council (EVC) warning that policy certainty will be crucial to maintaining momentum in the shift to cleaner transport.
Figures released by the Australian Automobile Association show 41,146 new EVs were sold nationwide in the second quarter of 2025, up 37 per cent from the same period last year when 30,028 EVs were sold.
Of the latest total, 29,244 were battery electric vehicles (BEVs) and 11,902 were plug-in hybrid electric vehicles (PHEVs), representing 13.1 per cent of all new car sales.
EVC Chief Executive Julie Delvecchio said the figures demonstrate the growing appeal of EVs among Australian drivers.
“Australian drivers are discovering what early adopters already knew: electric vehicles are better for the family budget. They’re great to drive, better for the environment, and cheaper to run,” she said.
Delvecchio cautioned, however, that the transition is still in its early stages. “It’s encouraging to see EV sales climb, but we’re still in the early stages of the transition, and numbers remain well short of what’s needed for a self-sustaining market,” she said.
“Electric vehicles need to make up at least 30 per cent of all new car sales in Australia before governments can responsibly consider withdrawing incentives or imposing taxes.”
The EVC pointed to concerns about proposed policy changes, including the removal of the fringe benefits tax (FBT) exemption and the introduction of road user charges.
“These figures show good progress, but with the Productivity Commission calling for the removal of the FBT incentive and road user charges being discussed, this risks slamming the brakes on growth,” Delvecchio said.
“These proposed changes will abruptly stall the shift to EVs, which benefit everyone through lower energy bills and cleaner air.”
She credited current federal policies, including the New Vehicle Efficiency Standard and the FBT exemption, for fuelling the surge in sales.
“Australia’s strongest quarter for EV sales yet is a testament to the current federal policies and incentives fuelling this growth,” Delvecchio said. “Combined with the discount on EVs through the FBT exemption, more everyday Australians are making the switch – and once they go electric, they don’t look back.”
Delvecchio added that the EV market is now offering more diversity than ever before. “Australia now offers electric vehicles for every lifestyle and preference – from utes and SUVs to sedans and hatchbacks,” she said.
With transport projected to become the nation’s largest source of emissions by 2030, the EVC said supporting the uptake of EVs is essential.
“More electric vehicles on our roads benefit everyone – they cut emissions, improve air quality, create quieter streets, reduce Australia’s reliance on foreign oil and help build a stronger energy grid,” Delvecchio said.
“These collective benefits make electric vehicles essential for a more sustainable, healthier, and resilient future.”
