Australia Electric Car Market Report and Forecast 2024-2032

Australia Electric Car Market Size

The Australia electric car market is expected to grow at a CAGR of 18.3% between 2024 and 2032.

Key Takeaways

• As per industry reports, as of mid-2023, electric vehicles (EVs) accounted for 8.4% of all new car sales in Australia, marking a remarkable 120% increase compared to the entirety of 2022. 

• Notably, the bulk of EV sales are attributed to just three models—the Tesla Model Y, Tesla Model 3, and BYD Atto 3—which collectively comprise over 68% of the EV market. Despite this concentration, the overall sales of electric cars in Australia have seen a continuous uptick, with the first half of 2023 surpassing the total sales volume for the entire year of 2022. 

• By the end of June 2023, Australia had recorded the sale of 46,624 EVs, representing a nearly threefold increase from the same period in 2022—an impressive surge of 269%.

The Australia electric car market is undergoing a significant transformation, embracing sustainable transportation as a key focus. While the growth of electric vehicles (EVs) has been steady, it remains relatively modest compared to other developed nations. EVs, powered by electric motors and rechargeable batteries, currently constitute less than 1% of total vehicle sales in Australia due to factors such as limited government incentives, high upfront costs, and inadequate charging infrastructure.

There's a gradual shift fuelled by growing environmental awareness, technological advancements, and declining battery costs. Major players like Tesla, Nissan, Hyundai, and Mitsubishi have introduced improved electric car models, aiming to attract Australian consumers. The government's initiatives, including proposed incentives and investments in charging infrastructure expansion, further encourage electric car uptake.

Despite progress, challenges persist, necessitating more aggressive policy support, public awareness campaigns, and infrastructure development. Government initiatives play a vital role in driving market growth, with states like New South Wales and Victoria leading the charge with EV-friendly policies and incentives.

Urban centres such as Sydney, Melbourne, and Brisbane stand out for their robust EV infrastructure and proactive governmental policies, fostering higher adoption rates. Over the medium term, factors like increasing demand for fuel-efficient vehicles and stricter emissions regulations are expected to drive market growth, along with investments and product launches by major OEMs. Moreover, government regulations phasing out fossil fuel-powered vehicles and investments in EV charging infrastructure are poised to further propel the Australia electric car market development.

Australia Electric Car Market Report Snapshots

Australia Electric Car Market Size

Australia Electric Car Companies