Australia EV sales to boom in 2025 despite 2024 downturn

The Aussie EV explosion came to a grinding halt in 2024 and a new report has outlined what’s to come.

Australia’s EV Council expects sales of battery-powered vehicles to grow in 2025, despite a clear downturn in demand.

Fresh models from new brands such as Zeekr, Xpeng, Deepal and Leapmotor are expected to propel sales next year.

But Australia’s most popular EV brand, Tesla, has recorded a 20 per cent downturn this year, with sales falling from about 44,000 to about 35,000 vehicles from January to November.

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Hyundai Ioniq 5 N, Hyundai Santa Fe, BYD Shark 6. Picture: Thomas Wielecki

Sales of BYD’s popular Atto 3 electric car have also halved in 2024, and Hyundai’s Ioniq 5 and 6 duo have also recorded reductions.

Data published by the Federal Chamber of Automotive Industries – which does not include Tesla or Polestar – shows sales of pure electric cars have fallen from about 80,500 to about 70,000 for the year to date, while plug-in hybrid cars have increased from about 10,000 to 20,500 sales.

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Tesla Model Y sales have fallen this year. Photo: Mohd RASFAN / AFP

Electric Vehicle Council chief scientist Dr Jake Whitehead said electric and plug-in hybrid vehicles represent 9.5 per cent of sales today.

“It’s clear that a growing number of Australians are seeking cleaner, more efficient cars.

“This year’s gradual growth in EV sales and market share builds on the momentum of a blockbuster 2023, further driving the upward trend in BEV and PHEV adoption. 

“By any measure, there are more EVs on our roads today than ever before and that is set to grow. The pace of this growth, however, will depend on the level of support from governments and industry.”

Plug-in hybrid sales could be hurt by a government leasing discount that ends on April 1, making it more expensive to get hold of popular machines such as the Mitsubishi Outlander PHEV.

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The Mitsubishi Outlander PHEV GSR sits atop the range with a drive-away price of about $78,000.

Electric Vehicle Council spokesman Aman Gaur said the expansion of EV charging networks helped accelerate EV sales, and that the government should consider more lucrative incentives top put green cars in the fast lane.

“Governments should come back to the table and consider reintroducing and expanding reasonable purchase incentives to drive EV adoption to a critical mass, including support to purchase second-hand EVs,” he said. 

“We also need stronger efforts from government, industry and other organisations to combat misinformation about EVs, which undermines public support and hinders the transition.

“Additionally, all levels of government must implement consistent policies to boost EV supply and remove barriers to electrifying transport.”

“With the right investments and policies, we can accelerate the EV transition, helping more Australians make the switch and supporting a sustainable future for all of us.”

Originally published as Australia EV sales to boom in 2025 despite 2024 downturn