Australia recorded a sharp rise in electric vehicle (EV) sales in 2025, with new-car sales data showing nearly 157,000 EVs were purchased nationwide, marking a 38% increase from the previous year. According to new figures from the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council (EVC), a total of 156,753 electric vehicles were sold across Australia in 2025.
Record Market Share and Strong Growth
EVs made up 13.1% of all new car sales in 2025, up from 9.6% in 2024. Of the total EV sales, 103,269 were battery electric vehicles (BEVs), accounting for 8.3% of all new-car sales, a slight increase from 7.4% in 2024. Sales of plug-in hybrid vehicles (PHEVs) also saw substantial growth, more than doubling to 53,484 units, a 130.9% increase compared to the previous year.
The annual results were bolstered by a strong finish in December, which marked one of the best months on record for EV sales. EVs accounted for 16.7% of all new cars sold in December 2025, with 16,303 EVs sold. Out of these, 10,384 were BEVs, and 5,919 were PHEVs.
These strong sales figures have helped bring Australia’s total EV fleet to more than 454,000 vehicles.
A Shift in Buyer Priorities
According to Julie Delvecchio, CEO of the Electric Vehicle Council, the growth in EV sales points to a sustained shift in buyer priorities, with EVs becoming “an established and growing part of Australia’s car market.” However, not all industry leaders share the same enthusiasm about the pace of growth.
Tony Weber, CEO of the FCAI, noted that the growth in the battery electric vehicle (BEV) segment has been slower than expected. He pointed out that the increase in BEV market share has been “anaemic”, rising by only 1.1 percentage points over the last two years, well below earlier projections. Weber emphasized that stable policy support and continued investment in recharging infrastructure are necessary to support further growth.
He also mentioned that international trends show sustained EV uptake is closely tied to consumer incentives and reliable public recharging infrastructure.
Tesla and BYD Dominate the EV Market
Despite experiencing a notable year-on-year decline, Tesla remained Australia’s highest-volume EV brand in 2025, with 28,856 vehicles delivered, representing a 24.8% decline compared to the previous year.
BYD, a Chinese automaker, saw a significant boost in its sales, with 25,287 vehicles sold in Australia in 2025, a 77.3% increase year-on-year. Although Tesla saw a drop in sales, it still maintained its position at the top of the EV sales charts in Australia, with BYD following closely behind.
Conclusion
The electric vehicle market in Australia has made remarkable progress in 2025, with strong sales growth and increased market share. However, as industry leaders like Tony Weber point out, further growth will depend on consumer incentives and the availability of charging infrastructure. The EV market is on a positive trajectory, and with the support of both government policy and infrastructure, it is likely to continue expanding in the coming years.
