EV Sales Nearly Double in Australia as Fuel Prices Accelerate the Shift

Electric vehicle sales hit 11.8% of Australia's new car market in February, nearly double the 5.9% share from the same month last year. And with petrol prices up more than 70 cents a litre since the Iran conflict began, the shift is picking up speed.

More buyers, more choice, lower prices

Chinese automakers BYD and GWM both report a significant spike in EV and hybrid sales since the fuel crisis began. Tesla Model Y sales grew more than 20% month-on-month. And it's not just early adopters: farmers in regional Victoria are looking at EVs paired with solar panels to cut running costs to around $100 a year.

The pricing picture has changed too. A wave of new models from BYD, MG, Hyundai and Zeekr has pushed entry-level EV prices below $30,000. Demo and near-new EVs are being discounted by up to $30,000 at dealerships around the country, with models like the Hyundai Inster available from under $29,000 drive-away.

That competition is pulling down prices on petrol and hybrid vehicles as well. If you're buying any new car right now, electric or not, there are more deals on the table than 12 months ago.

The finance side is catching up

More EVs on the road means more lenders are competing to finance them. Many Australian lenders now offer green car loans with rates 0.50% to 1.00% lower than standard secured vehicle finance. Some waive application fees or include perks like EV charging credits.

On a $40,000 loan over five years, a 0.70% rate discount saves roughly $750 in interest. Not life-changing, but worth knowing about.

Should you switch?

The numbers are getting harder to ignore. EVs are cheaper to run, cheaper to maintain, and now cheaper to buy than they were even a year ago. With petrol well above $2 a litre and no clear end to the fuel crisis in sight, the running cost gap between electric and petrol is wider than it's ever been.

But EVs aren't right for everyone. Range, charging infrastructure and resale value are still real considerations, especially outside capital cities. Only about 2% of all cars on Australian roads are electric, so the secondhand market and service network are still maturing.

What to do now

If you're thinking about your next vehicle, run the numbers for your situation. What does the total cost of ownership look like over five years, including fuel, servicing, insurance, depreciation and finance costs? How does an EV compare to a hybrid or a fuel-efficient petrol car?

Compare finance options across multiple lenders. Rates and features vary significantly between products, and the gap between the best and worst offers can be thousands of dollars over a loan term.

The shift is real. Whether it's right for you depends on the maths, not the hype.

This article is general information only and is not financial advice.