Electric vehicle (EV) sales in Australia exceeded petrol car sales for the first time in August, marking a significant shift in the country's new-vehicle market. More than 27,000 EVs were sold during the month, a record for a single month, representing 24.9% of all new cars sold. This compares with nearly 26,000 petrol vehicles and 23,600 diesel cars sold in the same period. If plug-in hybrids are included, the proportion of new cars with a plug rose to 36% of total sales.
Factors Behind the Surge
The rise in EV sales has been driven by two key factors: the war in Iran, which has pushed up oil prices and made running a petrol car significantly more expensive, and the introduction last year of a federal vehicle emissions standard. This standard requires auto companies to cut average tailpipe emissions year-on-year, triggering a big increase in the number of low and zero emission car models available at a range of prices.
Australia had previously trailed most OECD countries in EV adoption. The technology has been the focus of political scare campaigns, including former prime minister Scott Morrison's 2019 claim that introducing a vehicle emissions standard would “end the weekend.” EVs made up less than 2% of sales just four years ago and about 8% last year.
Government and Industry Reactions
Climate change and energy minister Chris Bowen described EV sales surpassing petrol cars as a “landmark moment.” “Australians have seen through the scare campaigns and are voting with their wallets for cars that are cheaper to run, cleaner and reduce their exposure to international petrol price shocks,” he said.
Toyota was Australians' most popular car brand in August, followed by Chinese EV manufacturer BYD and Tesla. Five of the top 10 brands were Chinese: BYD, GWM, MG, Geely and Chery. The Tesla Model Y was the most popular new model, with more than 6,400 sold.
Industry Calls for Infrastructure Investment
The Electric Vehicle Council said there had been a “structural shift in the way Australians choose their cars,” with both economic and environmental benefits driving the change. Council chief executive Julie Delvecchio noted there were now nearly 200 EV models on offer. “The priority now is to make the benefits of going electric accessible to more Australians, including people in regional communities, apartment residents and the 30% of Australians who rent their home,” she said.
Federal Chamber of Automotive Industries chief executive Tony Weber said consumer choice and competition were rapidly reshaping the new-vehicle market, and infrastructure settings needed to keep pace. “Accessible and dependable charging will remain critical to consumer confidence, particularly on highways, in rural and regional areas and for motorists without access to charging at home,” he said.
