Australia Electric Vehicle Market Report and Forecast 2025-2034

Key Trends in the Market

Electric vehicles (EVs) are automobiles propelled by one or more electric motors, utilising electrical energy stored in rechargeable batteries or another energy storage device. They differ from traditional internal combustion engine vehicles by relying solely on electricity for power instead of gasoline or diesel fuel.

These vehicles are manufactured in three different types, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs). They run entirely on electricity stored in rechargeable batteries. Since they do not have an internal combustion engine, they produce zero emissions while driving. Lithium-ion batteries are the most commonly used due to their energy density and efficiency.

• As consumer awareness about the benefits of electric vehicles grows, including their lower operational costs and reduced environmental impact, the demand for sustainable transportation options is expected to observe an upward trajectory. The Australia electric vehicle market demand is increasingly influenced by the growing preference for eco-friendly transportation over traditional internal combustion engine cars. Reportedly, the number of electric vehicles on Australian roads increased significantly, nearly doubling from 44,000 in early 2022 to surpass 83,000 by the year end.

• Australia has established its position as a crucial manufacturer of critical minerals and raw materials such as lithium, bauxite, nickel, manganese, cobalt, and graphite, among others, used in EV batteries. Moreover, the ongoing advancements in battery technology, resulting in improved range, faster charging times, and decreasing costs, are pivotal in enhancing the appeal and practicality of EVs.

• One of the significant Australian electric vehicle market trends is the introduction of government initiatives aimed at driving the transition towards a decarbonised transportation system. The Australian government intends to surge EV sales to 30% by 2030 and 100% by 2035 in new light vehicle sales.

Moreover, commitments by the Australian government under the Net Zero Emissions 2050 plan and the Paris Agreement are expected to boost the share of EVs in the transportation system to lower greenhouse gas emissions in the forecast period.

• Other factors influencing the Australia electric vehicle market growth include the increasing affordability of EVs, growing concerns regarding climate change, the surging availability of different models and brands of EVs, and the rising access to charging stations.

Market Analysis

Based on the platform, the market is categorised into two-wheeler, three-wheeler, and four-wheeler. On the basis of propulsion type, the Australia electric vehicle market segmentation includes battery electric vehicles, hybrid electric vehicles, fuel cell electric vehicles, and plug-in hybrid electric vehicles.

By price range, the market is divided into low-priced, mid-price, and luxury. The market, based on vehicle type, is categorised into passenger cars and commercial vehicles.

The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Australia electric vehicle market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• BMW AG

• Toyota Motor Corporation

• Tesla Inc.

• Mazda Motor Corp.

• Hyundai Group 

• AUDI AG 

• Mercedes-Benz Group AG

• Honda Motor Co., Ltd.

• Nissan Motor Co., Ltd.

• Australian Electric Motor Co

• Others

Market Share by Platform

According to the Australia electric vehicle market analysis, four-wheelers have been gradually gaining popularity. Various federal and state-level incentives, such as rebates, tax breaks, and subsidies for EV purchases, have been introduced to encourage their adoption. Efforts have been made to expand the charging infrastructure across the country, making it more feasible for people to own and use electric vehicles. More manufacturers are introducing electric models to the Australian market, providing consumers with a broader range of choices for four-wheel electric vehicles.

Meanwhile, the demand for two-wheelers, particularly motorcycles and scooters, in Australia has shown fluctuations without significant sustained growth. However, local companies such as Benzina introducing their sport electric scooters is likely to propel the development of the market.

Market Share by Propulsion

Battery electric vehicles are expected to account for a major portion of the Australia electric vehicle market share. The rising adoption of these vehicles can be attributed to the ongoing efforts to expand the charging infrastructure across cities and major highways in Australia. Increased accessibility to charging stations makes it more practical for people to own and operate BEVs.

In addition, more automakers are introducing BEV models into the Australian market, providing consumers with a wider selection of electric cars to choose from. Models like the Tesla Model 3, Nissan Leaf, Hyundai Kona Electric, and others have gained popularity.

Competitive Landscape

BMW AG, headquartered in Munich, Germany, is a leading automobile manufacturers renowned for its production of luxury vehicles and motorcycles. Established in 1916, BMW has established a global presence and reputation for manufacturing high-quality automobiles under its BMW, Mini, and Rolls-Royce brands. The company's product line ranges from sedans and SUVs to electric vehicles, consistently emphasising innovation, performance, and premium design across its vehicle offerings.

Toyota Motor Corporation, headquartered in Toyota City, Japan, is one of the largest automobile manufacturers globally. Founded in 1937, Toyota has a wide-ranging product lineup encompassing vehicles across various segments, including sedans, trucks, hybrids, and electric vehicles. Renowned for its reliability, efficiency, and innovation, Toyota is recognised for its Toyota, Lexus, Daihatsu, and Hino brands. It's a pioneer in hybrid technology, with its Prius model being one of the most iconic hybrid cars globally.

Tesla Inc., based in Palo Alto, California, is a leader in electric vehicle (EV) manufacturing and sustainable energy solutions. Founded in 2003, Tesla focuses on producing fully electric vehicles, energy storage solutions, and solar products. Tesla's innovative approach to EVs has significantly influenced the automotive sector’s transition towards electric mobility. Additionally, Tesla is involved in developing self-driving technology and aims to revolutionise transportation through its vision for autonomous vehicles.

Other Australian electric vehicle market players are Mazda Motor Corp., Hyundai Group, AUDI AG, Mercedes-Benz Group AG, Honda Motor Co., Ltd., Nissan Motor Co., Ltd., and Australian Electric Motor Co, among others.