Australian drivers’ interest in electric vehicles (EVs) remained steady amidst more affordable models entering the market and ongoing government incentives, according to new research from the Australian Automotive Dealer Association (AADA).
The AADA’s fourth annual national survey of 2,000 drivers, conducted in November 2025, shows that 38 per cent would consider an electric vehicle as their next main car. That figure is unchanged from September 2022.
The findings suggest that improved availability and wider model choice have not yet shifted consumer intent.
“Our members are committed to supporting Australia’s transition to lower-emissions vehicles and want to meet Australian drivers’ needs,” AADA chief executive James Voortman said.
“However, new car dealers are not yet seeing a significant increase in the number of consumers intending to purchase an EV at the scale required.”
Regional interest continues to lag
Drivers outside major cities are becoming less likely to consider electric vehicles, the survey found.
EV buying interest fell across regional and rural Australia. Dealers report that concerns around charging access, driving range and everyday practicality continue to influence buying decisions in these areas.
The regional slowdown poses a challenge for national emissions targets. In 2025, the Climate Change Authority released modelling showing electric vehicles would need to make up around 50 per cent of all new car sales each year through to 2035.
Current consumer intentions remains well below that level.
Hybrid vehicles gain momentum
While interest in EVs has stalled, more drivers are turning to hybrid and plug-in hybrid vehicles.
The survey shows growing willingness to consider hybrids as a lower-emissions option. Recent sales data reflect the same trend, with strong growth across multiple hybrid segments.
Cost pressures are also shaping buyer behaviour. Drivers now say they are willing to pay only a 2 per cent premium for an electric vehicle compared with petrol or diesel alternatives. That figure fell from 6 per cent in late 2024.
“What we are seeing is the automotive transition is happening, but at the pace of consumers choosing,” Mr Voortman said.
The AADA has run the EV and hybrid vehicle survey annually since 2022. The research tracks how Australian drivers’ attitudes are shifting as the vehicle market continues to evolve.
Did you find this article useful? Click the ‘heart’ button above to give it a ‘like’!
