Australia’s electric vehicle (EV) market reached a major milestone in 2025, surpassing 1,00,000 annual battery electric vehicle (BEV) sales for the first time.
According to data from the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council (EVC), BEV deliveries totalled 1,03,269 units, marking a 13.1 percent increase from 91,495 units in 2024. EVs now account for 8.3 percent of all new vehicle sales, up from 7.4 percent the previous year. A rising share of EVs opens an interesting opportunity for Australia to manage its high solar generation challenge, by possibly incentivising daytime charging or even exploring a ‘Vehicle to Grid’ opportunitity to turn these into ancillary storage for non-solar hours. With no domestic manufacturing to protect in auto, the shift will only accelerate with attractively prioced Chinese imports.
Expanding Model Range and Infrastructure
Automakers significantly broadened their EV portfolios across passenger cars, SUVs, and light commercial vehicles, giving Australian buyers more choice than ever before. This diversification has been accompanied by growing investment in charging and vehicle-to-grid (V2G) infrastructure.
According to the Australian Renewable Energy Agency (ARENA), AUD 21 million was invested through its Driving the Nation Fund in 2025 to accelerate EV infrastructure projects. The funding supports ultra-fast charging networks, kerbside charging points, and integration with V2G systems.
The Australian Energy Regulator’s Export Services Network Performance Report 2025 noted that large battery capacities, ranging between 16kWh and 100kWh, position EVs as a potential mobile energy storage fleet that could reshape the National Electricity Market (NEM).
Commercial Fleet Adoption Driving the Shift
Commercial adoption also fueled market growth, with businesses and government agencies increasingly integrating EVs into their operations. Companies such as Amazon and other logistics providers expanded their EV fleets in 2025, leveraging lower operational costs and advancing sustainability goals.
PHEVs and Electrified Sales on the Rise
Plug-in hybrid electric vehicle (PHEV) sales surged as well, with 53,502 units delivered – a 134.5 percent jump from 2024. Combining BEVs and PHEVs, total electrified vehicle sales reached 156,857 units, capturing 13.1 percent of Australia’s total new vehicle market, up from 9.5 percent the previous year.
Growing Market and Expanding Fleet
FCAI data shows that the broader Australian new vehicle market remained resilient in 2025, reaching total sales of 12,09,808 units. The country’s cumulative EV fleet has now climbed past 4,54,000 vehicles, reflecting sustained demand driven by broader model availability and improved consumer confidence.
December 2025 proved to be a record-setting month, with 10,384 EVs sold, representing 10.2 percent of the total market, up from 9.1 percent in November.
China’s BYD topped December’s chart with 4,113 sales, edging out Tesla, which recorded 2,585 deliveries during the same period. The strong year-end performance by both brands helped push annual totals beyond the 100,000-unit threshold.
Globally, the rivalry between BYD and Tesla continues to intensify. Tesla delivered 1.64 million EVs in 2025, marking its second consecutive year of lower output, while BYD surged ahead with 2.25 million BEV sales, cementing its lead in the international electric vehicle race.