EV sales in Australia drop to lowest level in two years: AAA
Electric vehicle sales in Australia have sunk to their lowest level in two years as more Aussies turn to the 'range safety' of traditional combustion engines or plug-in hybrids.
Data from the Australian Automobile Association revealed just 17,914 EVs were sold in the first three months of 2025 or just over 6 per cent of all vehicle sales in the country.
The AAA quarterly vehicle report showed the last time EV sales were at that level was in 2023 when 17,396 cars were sold during the same period.
The 2025 data also shows EVs have dropped market share when compared to the final three months of 2024 – 21,331 EVs were sold in the last quarter of 2024 to make up 7.42 per cent of the country's vehicle sales.
That represents a drop of 1.12 per cent in market share quarter to quarter.
MORE:Car prices set to plummet
EV sales in Australia have dropped to a two-year low. Picture: NCA NewsWire/Naomi Jellicoe
MORE:First look: Car ready to take over Australia
Industry experts say the government's attitude to EV subsidies has a massive part to play in consumer sentiment.
Federal Chamber of Automotive Industries boss Tony Weber told carsguide.com.au he doesn't believe EV sales can recover without proper government support.
'Subsidies remain central to the success of EV policy in many leading markets. In European markets and other markets around the world, including New Zealand, demand for electric vehicles softened when governments reduced subsidies,' he said.
While the drop would be of some concern to the EV industry it hasn't come at the expense of the environment.
While Aussies have steered slightly away of outright EVs, it hasn't been a return to petrol-only engines either.
MORE:Bad news for electric vehicles in Australia
Federal Chamber of Automotive Industries CEO Tony Weber believes EV sales will only increase with government support.
MORE:Staggering loss proves Cybertruck is dead
Hybrid vehicles have boomed as Australians look for an environmental alternative that also includes the safety net of a combustion engine that allows greater distance range and less time to charge and get going.
Plug-in hybrid sales almost doubled in the first three months of 2025 to 13,698 or almost 5 per cent of the market. That's up from 7556 sales (2.63 per cent) in the last quarter of 2024.
The number of conventional hybrid vehicles sold increased from 42,618 to 46,115 over the same period.
Vehicles with traditional petrol engines continued to make up the vast number of sales in Australia for the first quarter of 2025 but did experience a drop.
EVs are flooding into Australia from China but less people are buying them in 2025.
More than 206,800 vehicles were sold, comprising 72.68% of all sales in Australia. Those figures represent a drop of about 10,000 sales and almost 2.5 per cent market share compared to the end of 2024.
Despite the drop in EV sales, the industry is confident transactions will recover.
'We expect that segment of the market to bounce back given a post-FBT exemption dip was always to be expected,' Electric Vehicle Council's Aman Guar told carsguide.com.au.
'Once someone chooses an EV of any kind they are very unlikely to ever go back to traditional cars again. The day-to-day convenience, the pleasurable driving experience, and the cost of living benefits of EVs combine into a very attractive package and these attractions are only going to grow stronger.'
Originally published as EV sales in Australia drop to lowest level in two years: AAA
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Australian
30 minutes ago
- The Australian
Western Gold Resources closes in on production with $3m loan facility
Special Report: Western Gold Resources has secured a 12-month $3 million secured non-converting loan facility from high-net-worth investors to advance the Gold Duke project in WA into production. WGR says the funding will support upgrade control and infill drilling Updated scoping study expected to reflect improved economics due within weeks Company confident of commencing operations in Q4 2025 Mining contractor SSH Group provides deferred funding facility for mining The project hosts shallow free-milling ore, enabling rapid, low-cost open-pit extraction and early access to production and is just 46km from the Wiluna processing plant. Back in June, the company secured a binding toll milling agreement with Wiluna Mining Corporation, allowing it to lock in stage 1 production, which involves the production of 447,000t at 2.55g/t gold for 34,000oz of gold from the Eagle, Emu, Gold King and Golden Monarch deposits. This was based on the 2024 scoping study which assumed a gold price of $3500/oz, well below the current Australian gold price above the $5100/oz mark. Western Gold Resources (ASX:WGR) expects to release an updated scoping study this month. In the meantime, the non-dilutive loan funding will be used to support the planned grade control and infill drilling program at Gold Duke - with the company confident it will begin mining operations late Q4 2025. Project will be in production this year The loan structure is in keeping with the board's objective of minimising shareholder dilution which WGR says is reinforced with preferred mining contractor SSH Mining's (ASX:SSH) provision of a deferred payment facility to facilitate and start mining operations. 'The support shown for this loan facility speaks volumes to the quality of the Gold Duke project and is in keeping with our goal to ensure minimal shareholder dilution as we march toward expected commencement of mining operations in late 4Q25,' managing director Cullum Winn said. 'The timing is particularly favourable, coinciding with strong gold market conditions and we expect to capitalise on this environment with the release of our updated scoping study in the coming weeks.' The study is expected to show significant improvement to the already impressive and robust project economics. Plus, while stage 1 is underway, WGR will also be able to simultaneously develop stage 2 for potential extensions to the life of mine (LOM) such as Joyners Find and Bottom Camp. This article was developed in collaboration with Western Gold Resources, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions. Sponsored Nova Minerals has released a conceptual processing flowsheet for its 1.24Moz RPM deposit in Alaska. Sponsored Rhythm Biosciences has announced that its second-generation ColoSTAT blood test detects colorectal cancer consistently across all stages of the disease.
The Australian
an hour ago
- The Australian
WTM on trail of large gold corridor
Special Report: Waratah Minerals shot up more than 40% in early trading after drilling at Spur project in the East Lachlan region of NSW reinforced the potential of the Spur gold corridor to host a large-scale, high-grade epithermal gold system. WTM says multiple high-grade gold zones extend Spur Gold Corridor Project shaping up to host sizeable epithermal system in NSW Company undertaking extensional RC and diamond drilling The latest assays returned: 208.7m at 1.17 g/t gold from 514m including 89m at 1.96 g/t from 614m and including 38m at 3.61 g/t from 665m (drill hole SPRCD062 at Consols prospect); 27m at 1.03 g/t Au from 163m (SPRC078 at Essex Zone); 28m at 0.88 g/t Au from 160m (SPRC077 at Essex Zone); and 21m at 0.73 g/t Au from 133m (SPRC076 at Thistle Zone). Waratah Minerals (ASX:WTM) also found visible gold at Consols, which it says represents a major extension of the Spur Gold Corridor. A broad spaced drill program is planned for Consols to determine the extent of the mineralised system from surface to approximately 450m depth. Scale and significance becoming clear The company is confident the drilling demonstrates the potential scale, significance and growth upside of the rapidly emerging Spur Gold Corridor. 'Drill hole SPRCD062 represents a pivotal drill hole for Waratah at our Spur project,' MD Peter Duerden said. 'We have always believed that the epithermal gold mineralisation of the Spur Gold Corridor crossed the Essex Fault and should extend to the northeast, despite historical drilling having been unable to locate extensions. 'The decision by the exploration team to extend SPRCD062 twice based on encouraging geological indicators has resulted in the identification of a new mineralised zone including visible gold with high grades at Consols which represents a major extension of the Spur Gold Corridor and the best intercept at the project to date. 'With the ongoing exploration success and a high-level team in place the company is planning to accelerate activity at the project.' Extensional RC and diamond drilling is now underway at the Spur Project to define epithermal gold across the >1.5km Spur Gold Corridor whilst simultaneously testing for porphyry mineralisation in the Breccia West area. This article was developed in collaboration with Waratah Minerals, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
The Australian
an hour ago
- The Australian
Break it Down: Heavy Rare Earths primed for Prospect Hill tin perforation
Stockhead's Break it Down brings you today's leading market news in under 90 seconds. In this episode, host Tylah Tully looks at news from Heavy Rare Earths (ASX:HRE), who have entered a new deal with major shareholder Havilah Resources (ASX:HAV) and secured the rights to all minerals at Prospect Hill - South Australia's most advanced and largest known tin project. Watch the video to learn more. While Heavy Rare Earths is a Stockhead advertiser, it did not sponsor this content. Sponsored Nova Minerals has released a conceptual processing flowsheet for its 1.24Moz RPM deposit in Alaska. Sponsored Rhythm Biosciences has announced that its second-generation ColoSTAT blood test detects colorectal cancer consistently across all stages of the disease.
