Australia has passed a major milestone in its electric vehicle transition, with more than 500,000 battery electric vehicles (BEVs) now registered.
The milestone, announced by the Electric Vehicle Council (EVC) on World EV Day, comes 16 years after the first battery electric car, the Mitsubishi i-MiEV, became available for purchase in Australia in 2010.
The EVC says growing model choice, falling costs and supportive policies have contributed to the rapid increase in EV sales, with almost 200 models now available in Australia.
BEV sales also reached a monthly record in August, accounting for 24.9 per cent of new vehicle sales new vehicle sales across all reporting sources, making them the largest single fuel type for the month.
From 500,000 to five million
While the 500,000-vehicle milestone marks significant progress, the EVC says the next stage of the transition will require substantially faster growth.
The EVC says Australia needs to reach five million BEVs on the road by 2035. With the country now at 500,000, another 4.5 million battery electric vehicles would need to be added by 2035.
EVC chief executive Julie Delvecchio said the milestone demonstrated how far the Australian market had progressed, while highlighting the scale of the task ahead.
“Hitting 500,000 battery electric cars on Australian roads is a remarkable achievement that we always believed was possible, even when others doubted it,” Delvecchio said.
“EVs are one of the single most effective cost-of-living measures available today. Aussies are voting with their wallets – and right now, they’re choosing electric.”
Delvecchio said running costs were becoming an important part of the appeal of EVs alongside their environmental benefits.
“When people realise they can save $3,000 per year driving electric, they don’t need convincing – they just buy one.”
Three areas will shape the next stage
In August, BEVs accounted for almost one in four new vehicle sales, while BEVs and plug-in hybrids together represented more than one-third of the market.
At the same time, petrol and diesel vehicles fell below half of all new vehicle sales for the first time.
The EVC identified three areas it says will be important to maintaining the momentum:
- Choice and affordability: Almost 200 EV models are now available, with greater choice across vehicle segments and increased affordability expected to support further sales growth.
- Charging access: More coordinated planning and delivery of reliable charging infrastructure will be required for apartment residents, renters, businesses and regional communities.
- Policy certainty: Continued policy support is needed to maintain consumer and business confidence, vehicle supply and private investment.
Policy settings remain under scrutiny
The EVC said measures including the New Vehicle Efficiency Standard (NVES) and the Electric Car Discount have contributed to benefits for consumers, while upcoming discussions around the NVES and a potential road user charge could influence the next phase of the transition.
Delvecchio said the review of the NVES would be particularly important.
“The review of the Vehicle Efficiency Standard is a crucial moment in our path to 5 million BEVs. If the Standard is allowed to stagnate after 2029, Australians will be forced to drive expensive petrol cars,” she said.
Industry needs to prepare
The EVC also welcomed the latest round of the Australian Government’s DRIVEN rebate, which provides support for dealerships and repair workshops investing in EV-specific equipment.
Under the latest round, businesses can receive rebates covering up to 80 per cent of eligible costs, including EV-specific tooling, protective equipment and workshop upgrades, up to $50,000.
“Dealerships and repair workshops right across the country need to be ready for the customers already walking through their doors,” Delvecchio said.
“This round allows them to claim up to 80% of the cost of EV-specific tooling, protective equipment and workshop upgrades, up to $50,000.”
The EVC’s 500,000-BEV milestone comes as Australia’s new vehicle market continues to shift towards electrification, with the challenge now m shifting towards scaling the market and supporting the infrastructure and industry capability needed for the next 4.5 million vehicles.
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