Big sign Australia’s EV dream is dying

Tesla is facing mounting pressure in Australia from a wave of Chinese EVs, but new data suggests the entire industry is on the ropes.

Electric cars are losing their shine for Australian drivers as cost of living pressures put the brakes on demand for green vehicles.

Earlier this year, news.com.au launched The Great Aussie Debate, a wide-ranging, 50 question survey that has uncovered what Australians really think about all the hot topics of 2025.

Over two weeks, more than 54,000 Australians took part in the survey, revealing their thoughts on everything from the cost of living and homeownership, to electric vehicles and going shoeless in supermarkets.

The results show the number of people considering an electric vehicle for their next car has dropped.

When asked “Are you considering an EV for your next car?”, only 14.9 per cent of people said yes in this year’s quiz.

That represents a notable fall from the 18.9 per cent of people who were considering an electric car in 2023.

The number of people who answered “Maybe” fell from 27 per cent to 23 per cent, suggesting people have a better understanding of whether an EV is right for them.

Of the three possible answers, “No” was the only one to record an increase, jumping from 53.8 to 62.1 per cent.

People aged 30-39 were the most likely to consider an EV, while folks over 70 were least likely according to News.com.au survey data.

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Australians are less likely to consider an EV, according to results from The Great Debate. Picture: news.com.au

Women were less likely to consider an EV than men, and non-binary people or folks who preferred not to state their gender were much more open to EV ownership.

Readers in the Australian Capital Territory were the most likely to say yes to an electric car, which adds up considering the territory’s green incentives, strong charging network and progressive policies including a regional ban on new petrol and diesel vehicle sales from 2035.

Unsurprisingly given limited infrastructure and vast distances between cities, readers in the Northern Territory were the least likely to consider an EV.

Australia’s biggest argument finally settled

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Competition in the electric car sector is heating up, with new brands such as XPeng, Zeekr and Geely bringing EVs to rival established players such as Tesla, Kia and Hyundai.

Falling demand has triggered price wars that pushed costs below $30,000 for the first time this year.

Australia’s resistance to make the switch to electric vehicles in greater numbers will not be welcomed by an automotive industry that has staked much of its future on battery powered vehicles.

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2025 Tesla Model Y, BYD Sealion 7 and Volkswagen ID. 4 Pro. Picture: Mark Bean

But it should not come as a surprise.

Data from The Great Debate lines up automotive surveys published in Australia this year.

Automotive classifieds giant Carsales surveyed more than 2000 people and reported in January that the percentage of its audience who had ever considered an EV dropped from 56 per cent in 2022 to 30 per cent in 2025, in what it attributed to “a reflection of the cost of living crisis and a decrease in disposable income for the average person”.

Carsales’ data services director, Ross Booth, said at the time that “price remains a key barrier to EV adoption”.

“The good news is that we’ve already seen a drop in new EV prices.

“Since 2021, the RRP of petrol vehicles has risen by 20 per cent, while EV prices have decreased by 9 per cent, a drop of over $3000 on average.

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Zeekr X, Deepal S07, XPeng G6 electric cars. Picture: Thomas Wielecki

“Competition in the EV market is also increasing and with up to 12 new Chinese car brands set to enter the country, many of which will focus on EVs, prices will likely drop further in the upcoming years.”

Data published by the Australian Automotive Dealer Association following surveys in 2022 and 2024 found “intention to purchase an EV has plateaued”, AADA chief executive James Voortman said.

“If EV adoption is to accelerate, industry and government must work together to address cost concerns and improve the value proposition for consumers.”

Originally published as Big sign Australia’s EV dream is dying