EV sales surge as fuel uncertainty drives Australian buyers

Electric vehicle sales surged in March, hitting their highest share of the Australian market to date as fuel uncertainty and rising petrol costs begin to reshape buying behaviour.

New data from the Federal Chamber of Automotive Industries’ VFACTS report shows 15,839 battery electric vehicles were sold in March, accounting for 14.6% of total sales. That’s up sharply from 7.5% a year earlier.

The jump comes as motorists face sustained pressure at the bowser, with global fuel supply disruptions - including ongoing conflict in the Iran - adding to cost concerns and accelerating interest in alternatives.

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Overall vehicle sales softened, with 105,058 units sold in March, down 3.3% year-on-year, suggesting the shift toward EVs is happening within a tighter market.

EV charging network Jolt has also announced its strongest month ever for new customer registrations, with sign-ups jumping 54.5% month-on-month for new EV charging accounts.

FCAI chief executive Tony Weber said the surge in EV uptake may reflect a mix of short-term pressures rather than a clear structural shift.

“It is too early to determine whether this represents a structural shift in the market. More consumers are considering EVs due to the disruption to fuel supply caused by conflict in the Middle East, along with the review into the fringe benefits tax concession for EVs,” Weber said.

The data highlights a growing tension in the market. While consumer interest in EVs is rising, the industry is still grappling with the conditions needed to sustain long-term growth.

“The automotive industry would welcome a sustained shift to EVs, given its substantial investment in bringing more than 100 EV models to the Australian market and the industry’s efforts to meet ambitious NVES targets,” Weber said.

“A long-term shift to EVs will require Australian governments to sharpen their focus on public charging infrastructure, particularly in regional areas and locations where home charging is not practical.”

“Ensuring infrastructure keeps pace with consumer demand will be critical to enabling sustainable growth in EV adoption beyond short-term influences.”

Toyota remained the overall market leader in March with 16,574 sales, followed by Kia (7,320), BYD (7,217), Mazda (7,156) and Ford (7,149).

Despite the EV surge, traditional utes continued to dominate the top-selling models, with the Ford Ranger (4,452) and Toyota HiLux (4,167) leading the market, underlining the gap between rising EV interest and entrenched buying habits.