Record-breaking quarter for electric vehicle sales in Australia

Close up shot of shiny red Tesla EV in garage (polestar)
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New figures from the Australian Automobile Association show a record-breaking quarter for electric vehicle (EV) sales in Australia.

The AAA’s quarterly EV Index shows Australians bought 29,244 new battery electric vehicles (BEVs) in the June quarter—up from the 17,901 sales registered in the three months to 31 March.

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While sales of all light vehicles increased by 10.42% in the June quarter, BEV’s market share climbed from 6.29% in the previous quarter to 9.31% in Q2.

Internal combustion engine (ICE) vehicles dominated overall sales with 226,306 sold—up 9.90% from the Q1 total of 205,911. But the ICE market share fell slightly from 72.37% to 72.03%.

Total hybrid sales fell only slightly (from 47,014 to 46,732, down 0.6%). But with total light vehicle sales up, the hybrid market share slipped from 16.52% to 14.87%, the lowest share since Q1 2024.

Plug-in hybrid (PHEV) sales also declined, falling from 13,711 in Q1 2025 (4.82% market share) to 11,902 in Q2 (3.79% market share).

The Electric Vehicle Council says the record sales figures underscore the importance of retaining incentives and policies to sustain uptake and drive emissions down.

“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,” Electric Vehicle Council CEO Julie Delvecchio said.

“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. 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.

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“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. These proposed changes will abruptly stall the shift to EVs, which benefit everyone through lower energy bills and cleaner air.

“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.”

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