Australia Electric Vehicle Market Size, Share, Growth Analysis Report and Forecast Trends (2026-2035)

Key Trends in the Market

Electric vehicles (EVs) are automobiles propelled by one or more electric motors, utilising electrical energy stored in rechargeable batteries or another energy storage device. They differ from traditional internal combustion engine vehicles by relying solely on electricity for power instead of gasoline or diesel fuel.

These vehicles are manufactured in three different types, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs). They run entirely on electricity stored in rechargeable batteries. Since they do not have an internal combustion engine, they produce zero emissions while driving. Lithium-ion batteries are the most commonly used due to their energy density and efficiency.

• As consumer awareness about the benefits of electric vehicles grows, including their lower operational costs and reduced environmental impact, the demand for sustainable transportation options is expected to observe an upward trajectory. The Australia electric vehicle market demand is increasingly influenced by the growing preference for eco-friendly transportation over traditional internal combustion engine cars. Reportedly, the number of electric vehicles on Australian roads increased significantly, nearly doubling from 44,000 in early 2022 to surpass 83,000 by the year end.

• Australia has established its position as a crucial manufacturer of critical minerals and raw materials such as lithium, bauxite, nickel, manganese, cobalt, and graphite, among others, used in EV batteries. Moreover, the ongoing advancements in battery technology, resulting in improved range, faster charging times, and decreasing costs, are pivotal in enhancing the appeal and practicality of EVs.

• One of the significant Australian electric vehicle market trends is the introduction of government initiatives aimed at driving the transition towards a decarbonised transportation system. The Australian government intends to surge EV sales to 30% by 2030 and 100% by 2035 in new light vehicle sales.

Moreover, commitments by the Australian government under the Net Zero Emissions 2050 plan and the Paris Agreement are expected to boost the share of EVs in the transportation system to lower greenhouse gas emissions in the forecast period.

• Other factors influencing the Australia electric vehicle market growth include the increasing affordability of EVs, growing concerns regarding climate change, the surging availability of different models and brands of EVs, and the rising access to charging stations.

Market Analysis

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Market Share by Platform

According to the Australia electric vehicle market analysis, four-wheelers have been gradually gaining popularity. Various federal and state-level incentives, such as rebates, tax breaks, and subsidies for EV purchases, have been introduced to encourage their adoption. Efforts have been made to expand the charging infrastructure across the country, making it more feasible for people to own and use electric vehicles. More manufacturers are introducing electric models to the Australian market, providing consumers with a broader range of choices for four-wheel electric vehicles.

Meanwhile, the demand for two-wheelers, particularly motorcycles and scooters, in Australia has shown fluctuations without significant sustained growth. However, local companies such as Benzina introducing their sport electric scooters is likely to propel the development of the market.

Market Share by Propulsion

Battery electric vehicles are expected to account for a major portion of the Australia electric vehicle market share. The rising adoption of these vehicles can be attributed to the ongoing efforts to expand the charging infrastructure across cities and major highways in Australia. Increased accessibility to charging stations makes it more practical for people to own and operate BEVs.

In addition, more automakers are introducing BEV models into the Australian market, providing consumers with a wider selection of electric cars to choose from. Models like the Tesla Model 3, Nissan Leaf, Hyundai Kona Electric, and others have gained popularity.

Competitive Landscape

Other Australian electric vehicle market players are Mazda Motor Corp., Hyundai Group, AUDI AG, Mercedes-Benz Group AG, Honda Motor Co., Ltd., Nissan Motor Co., Ltd., and Australian Electric Motor Co, among others.