Australia EV sales dropped to their lowest point in two years as buyers shifted toward plug-in hybrids and petrol-powered vehicles for better range and convenience. The Australian Automobile Association (AAA) reported that only 17,914 electric vehicles were sold in Q1 2025—just over 6% of total vehicle sales.
This figure marked a decline from the 21,331 EVs sold in Q4 2024, which made up 7.42% of the market. EVs also saw similar numbers back in Q1 2023, when buyers purchased 17,396 units. The latest quarter shows a 1.12% market share loss compared to the previous one.
Industry experts point to reduced government support as a major reason behind the slowdown. Tony Weber, CEO of the Federal Chamber of Automotive Industries, said strong EV policy depends on sustained subsidies. “When governments scaled back subsidies in Europe and New Zealand, demand fell,” Weber told carsguide.com.au.
Still, the shift doesn’t signal a complete return to petrol engines. Many Australians chose hybrids instead, drawn by their balance of range, fuel efficiency, and environmental benefits. Plug-in hybrid sales surged to 13,698 in Q1 2025—almost doubling from 7,556 units in Q4 2024. Their market share rose from 2.63% to nearly 5%.
Meanwhile, conventional hybrid sales grew steadily, increasing from 42,618 to 46,115. These figures show that while pure EV demand slowed, consumer interest in lower-emission alternatives continues to rise.
Petrol vehicles remained dominant but saw a slight decline. Australians bought more than 206,800 petrol cars in Q1 2025, accounting for 72.68% of sales. However, that total represented a drop of about 10,000 units and a 2.5% loss in market share compared to the previous quarter.
Despite the EV slowdown, industry leaders remain optimistic. Aman Guar from the Electric Vehicle Council believes the dip was expected. “We anticipated a fall after the FBT exemption ended,” he said. “But once someone drives an EV, they rarely go back. The convenience, savings, and enjoyable experience are hard to match.”
In summary, Australia EV sales may have slipped, but hybrid adoption continues to grow. As market dynamics and government policy evolve, many expect EV momentum to return—especially as more Australians explore long-term sustainable driving options.
