Australia Electric Car Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook (2024-2032)

Australia Electric Car Market Trends

The Australia electric car market offers significant environmental benefits. EVs help reduce greenhouse gas emissions, contributing to the fight against climate change. They also improve air quality in urban areas, benefiting public health, and when powered by renewable energy, they further lower their carbon footprint. In addition, EVs reduce noise pollution and decrease reliance on fossil fuels, promoting greater sustainability. They are also more energy-efficient, converting battery power into driving energy more effectively. According to the Australian Electric Vehicle Association (AEVA), the ACT Government's Transition to Zero Emission Vehicles Action Plan led to 7,233 battery electric vehicle registrations by March 1, 2024.

The growth of the electric car market is creating job opportunities across manufacturing, infrastructure, and renewable energy sectors while driving technological innovation and lowering fuel costs for consumers. Government incentives, rebates, and tax breaks make EVs more accessible, while expanded charging infrastructure makes ownership more convenient. As the market matures, EVs are expected to retain higher resale values. The Australian Automobile Association (AAA) reports that battery-electric vehicles made up 7.70% of total vehicle sales in December 2023.

Australia Electric Car Market Growth

The opportunities in the Australia electric car market are strengthened by the significant social and health benefits that come with the adoption of electric vehicles (EVs). EVs help reduce air and noise pollution, improving public health by lowering the incidence of respiratory and other pollution-related diseases. They also play a key role in the development of sustainable urban transport systems, enhancing city living and allowing consumers to contribute to environmental sustainability. By 2025, over 50 new electric vehicle models are expected to enter the Australian market, expanding consumer choice, according to the Australian Electric Vehicle Association (2023).

The Australia electric car market revenue is further driven by the contribution of EVs to the country’s infrastructure and technological progress. As Australia shifts towards greater reliance on renewable energy, electric vehicles help integrate solar and wind power into the grid. Vehicle-to-grid (V2G) technology allows EVs to stabilise the electricity grid by storing renewable energy, fostering a sustainable energy ecosystem. In April 2024, Peugeot launched its e-2008 electric crossover in Australia, featuring modern technology and a range of approximately 320 km, aimed at urban drivers seeking an efficient, compact vehicle for daily commuting.

Australia Electric Car Market Insights

• By the end of April 2024, electric vehicle (EV) sales accounted for 9.4% of all new vehicle sales, up from 8.4% in 2023 and 3.8% in 2022, according to industry reports. 
• Australia’s electric vehicle fleet surpassed 100,000 registered EVs, demonstrating strong growth in consumer adoption and infrastructure development, as reported by the Australian Bureau of Statistics in 2024. 
• EV sales in Australia are forecasted to make up 30% of total vehicle sales by 2030, driven by increasing consumer demand, according to the Electric Vehicle Council (2024). 
• The electric car market in Victoria is set to experience significant growth, with a projected compound annual growth rate (CAGR) of 20.4% from 2024 to 2032.

Industry News

September 2024

Nissan launched the Ariya electric SUV in Australia, highlighting its sleek design and cutting-edge technology. With a range of up to 500 km across various battery options, the Ariya is aimed at families seeking a spacious and efficient electric vehicle.

March 2024

Renault introduced the Megane E-Tech in Australia, marking the brand’s first purpose-built electric vehicle. Powered by a front-mounted motor delivering 160 kW and 300 Nm, it drives the front wheels and is paired with a 60-kWh battery, offering a WLTP range of 455 km.

Australia Electric Car Market Drivers

Government Incentives and Support

The growth of the Australia electric car market is being driven by increased government support for the transition to electric vehicles (EVs). Both federal and state governments are offering incentives such as rebates on EV purchases, tax breaks, and reduced registration fees, making EVs more affordable for consumers. Additionally, there is a strong focus on developing EV-friendly infrastructure, including the expansion of charging stations. These policies reflect Australia’s commitment to achieving net-zero emissions and meeting international environmental goals, encouraging both businesses and consumers to embrace electric mobility. The Australian government is investing AUD 20 million in battery recycling initiatives to support sustainable EV production and disposal, as reported by the Department of Environment and Energy in 2024.

Expansion of Charging Infrastructure

A prominent trend in the Australia electric car market is the rapid expansion of EV charging infrastructure. As electric vehicle adoption increases, the availability of charging stations has become crucial to supporting widespread usage. Both public and private investments are being directed towards building a comprehensive network of fast-charging stations, particularly along major highways and in urban areas. This expanding infrastructure alleviates range anxiety and makes long-distance travel more feasible for EV owners. With more charging points, the convenience of owning an EV is enhanced, further driving the adoption of electric mobility. Over AUD 300 million has been allocated to expand public EV charging infrastructure across Australia, according to the Department of Energy and Climate Change in 2024.

Opportunities in the Australia Electric Car Market

Shift Towards Sustainable Energy Integration

The integration of electric vehicles (EVs) with renewable energy sources is shaping the Australia electric car market dynamics and trends. As the country increasingly adopts solar and wind power, EVs are becoming a key component in harnessing and storing renewable energy. Electric vehicles can be integrated into smart grids using vehicle-to-grid (V2G) technology, allowing them to return surplus power to the grid. This shift towards sustainable energy integration reduces dependence on fossil fuels and aids the transition to a low-carbon economy. It also improves the overall sustainability of Australia’s EV ecosystem. By 2030, transitioning to electric vehicles could cut transport emissions by up to 18 million tonnes annually, according to the Department of Industry, Science, Energy and Resources in 2023.

Market Restraints

The Australia electric vehicle market faces several key challenges. The high purchase cost of EVs, largely driven by expensive batteries and production, makes them less accessible to many consumers despite long-term savings. Limited charging infrastructure, particularly in rural areas, exacerbates range anxiety and discourages potential buyers. This concern about insufficient charging options for long-distance travel remains a significant barrier.

Additionally, the availability of EV models in Australia is still limited, especially in larger vehicles like trucks and SUVs, which hampers broader adoption. Finally, the lack of efficient battery recycling infrastructure poses environmental and logistical challenges as the market grows, slowing down its expansion.

Australia Electric Car Industry Segmentation

“Australia Electric Car Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Battery Electric Vehicles
• Plug-In Hybrid Electric Vehicles
• Fuel Cell Electric Vehicles

Market Breakup by Vehicle Class

• Low-Priced
• Mid-Priced
• Luxury

Market Breakup by Vehicle Drive Type

• Front-Wheel Drive
• Rear-Wheel Drive
• All-Wheel Drive

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Electric Car Market Share

According to the Australia electric car market analysis, the market is driven by battery electric vehicles (BEVs), which offer significant environmental benefits by producing zero tailpipe emissions and helping to reduce greenhouse gases. This segment is projected to grow at a compound annual growth rate (CAGR) of 19.7% from 2024 to 2032. BEVs are more economical to operate and maintain compared to traditional vehicles, leading to considerable savings for consumers. Furthermore, BEVs can be charged using renewable energy sources, further boosting their sustainability. In October 2024, Tesla announced the expansion of its Model Y electric SUV in Australia, featuring improved performance and a spacious interior. With a range of over 500 km, it targets families seeking eco-friendly transport solutions.

The growth of the Australia electric car market is also supported by plug-in hybrid electric vehicles (PHEVs), which offer the benefits of both electric and conventional vehicles, providing flexibility for drivers who may not have access to charging infrastructure. PHEVs produce lower emissions than traditional petrol vehicles and can run on electric power for shorter journeys, improving fuel efficiency and reducing overall running costs. In September 2024, Mitsubishi launched the new Outlander PHEV in Australia, featuring a refined design and an enhanced electric range of up to 60 km. This model is aimed at families who want eco-friendly options without sacrificing space or performance.

By Vehicle Class Analysis

According to the Australia electric car market report, the market is led by mid-priced electric vehicles (EVs), which offer an affordable entry point for consumers transitioning to electric mobility. These vehicles provide essential features and reasonable ranges, making them accessible to a wider audience. This segment supports sustainability while allowing drivers to enjoy modern technology without the high price tag typically associated with luxury models. In October 2024, Xpeng launched its G6 electric SUV in Australia, available in two variants starting from AUD 54,800. The G6 is equipped with a 66 kWh battery, offering a range of up to 435 km, appealing to budget-conscious consumers seeking practical electric mobility solutions.

The Australia electric car market is also benefiting from the popularity of luxury electric vehicles (EVs), which offer cutting-edge technology, exceptional performance, and premium features to enhance the driving experience. These vehicles typically feature longer ranges and quicker charging capabilities, attracting affluent consumers who seek sustainability without compromising on comfort or status. Luxury EVs also play a role in reducing carbon footprints. In August 2024, Porsche launched the Taycan GTS in Australia, combining luxury with performance. With a dual-motor setup delivering a range of over 500 km and fast charging capabilities, it is aimed at high-end consumers looking for an exciting electric driving experience.

By Vehicle Drive Type Insights

The Australia electric vehicle market is experiencing growth as Front-Wheel Drive (FWD) electric cars are generally more space-efficient, offering larger cabin and cargo areas. This segment is expected to expand at a CAGR of 19.4% from 2024 to 2032. FWD vehicles provide better traction in challenging weather conditions, as the weight of the electric motor is positioned over the drive wheels. Additionally, FWD simplifies vehicle design, lowering manufacturing costs and complexity. In September 2024, Nissan launched the Leaf E+ in Australia, featuring an upgraded battery and a front-wheel drive configuration. With a range of up to 385 km, it is aimed at urban drivers looking for an efficient and practical electric vehicle.

The demand of Australia electric car market is further supported by the appeal of Rear-Wheel Drive (RWD) electric cars, which offer superior handling and performance, particularly when it comes to acceleration and cornering. The RWD layout improves weight distribution, enhancing stability and control. It is also favoured for performance-oriented models, delivering a more engaging driving experience for enthusiasts. In August 2024, BMW launched the i4 electric sedan in Australia, featuring a rear-wheel drive system that enhances its sporty performance. With a range of up to 590 km, it blends luxury with dynamic driving experiences, appealing to Australian consumers.

Australia Electric Car Market Regional Insights

New South Wales Electric Car Market Regional Insights

The electric vehicle market in New South Wales is supported by a robust infrastructure network and government incentives, which encourage sustainable transport solutions. This segment is expected to grow at a compound annual growth rate (CAGR) of 20.1% from 2024 to 2032. Increased consumer awareness and a broader selection of affordable electric vehicle options are driving adoption, leading to lower emissions and better air quality. In 2023, New South Wales recorded 28,883 electric vehicle sales, marking a significant rise in consumer interest and the shift towards sustainable transport, according to the Australian Automobile Association.

Queensland Electric Car Market Trends

According to the Australia electric car industry analysis, Queensland’s electric vehicle market is witnessing rapid expansion, driven by increased affordability and strong government support. The availability of cheaper models and the growth of charging infrastructure are making electric vehicles more accessible, thus appealing to a larger audience, and supporting environmental sustainability. Battery Electric Vehicle (BEV) sales in Queensland surged by 177.05% from 2022 to 2023, demonstrating the growing popularity of electric vehicles among consumers, as reported by the Australian Automobile Association in 2024.

Western Australia Electric Car Market Dynamics

Western Australia's electric vehicle market benefits from significant government initiatives that promote sustainable transport solutions. This segment is projected to grow at a CAGR of 16.7% from 2024 to 2032. With rising investments in charging infrastructure and consumer incentives, the region is well-positioned for continued growth in electric vehicle adoption. The number of public charging stations in Western Australia increased by over 30% in 2023, enhancing accessibility for electric vehicle owners across the state, according to the Western Australia Department of Transport.

Competitive Landscape

The Australia electric car market key players offer a diverse range of vehicles, including hatchbacks, sedans, SUVs, and electric vehicles, with a strong emphasis on quality, performance, and innovation. These companies are committed to sustainability and have made significant progress in the electric vehicle sector, with several models leading the market. They also provide comprehensive after-sales support, including maintenance, parts, and accessories, ensuring customer satisfaction across their brands. These companies play a crucial role in the Australian automotive industry, focusing on technological advancements and promoting eco-friendly mobility solutions.

Key Industry Players 

Tesla Motors Australia Pty Ltd: Established in 2010, Tesla Motors Australia Pty Ltd is the Australian arm of the global electric vehicle and clean energy company Tesla. Headquartered in Sydney, it focuses on the production and sale of electric vehicles, solar products, and energy storage solutions.

Hyundai Motor Company Australia Pty Ltd: Founded in 1986, Hyundai Motor Company Australia Pty Ltd is a subsidiary of Hyundai Motor Company, headquartered in Sydney. It offers a wide range of cars, SUVs, and electric vehicles, focusing on innovation, quality, and sustainability in the Australian automotive market.

BMW Australia Ltd: Established in 1992 and headquartered in Melbourne, BMW Australia is a subsidiary of the German luxury car manufacturer BMW Group. The company distributes a full range of premium vehicles, including electric models, and is renowned for its performance, innovation, and luxury offerings in Australia.

TATA Motors Australia (Jaguar Land Rover Ltd.): TATA Motors Australia, established in 2007 and headquartered in Melbourne, is part of TATA Motors and oversees the distribution of Jaguar and Land Rover vehicles in Australia. The company offers luxury cars, SUVs, and electric models, known for their design, performance, and off-road capabilities.

Another key player in the Australia electric car market report is Volkswagen Group Australia Pty Ltd, among others.

Recent Developments

June 2024

MG Motors unveiled the launch of its Marvel R electric SUV in Australia. With its roomy interiors, advanced technology features, and competitive pricing, this model is designed to appeal to families in search of affordable electric mobility options.

May 2024

Volkswagen introduced the ID.4 electric SUV in Australia, offering a spacious interior and modern connectivity features. Focused on sustainability and performance, this model is aimed at eco-conscious consumers seeking practical family-friendly vehicles.