In September 2023, out of the 110,000 vehicles sold in Australia, 10.6% were electric vehicles (EVs) with a plug. Of these, 8% were battery electric vehicles (BEVs) and 2% were plug-in hybrid EVs (PHEVs). The Tesla Model Y was the highest selling BEV and SUV, coming in third overall after the Toyota Hilux and Ford Ranger. This milestone shows that Australia has exceeded a 10% market share for EVs, marking a significant increase from just a few years ago when the penetration was only 0.8%.
Rapid Growth of EVs in Australia
Australia’s adoption of EVs has been rapid but staggered. In the beginning, there was only a 0.8% penetration, but by the end of 2022, it had tripled to 2.4%. With the introduction of new EV models like the refreshed MG ZS EV, BYD Atto 3, and Tesla Model Y in late 2022, the stage was set for another step-change in 2023. For most of the year, the penetration rate has hovered around 8%. However, in September, Australia exceeded the 10% barrier, and it’s expected that the introduction of affordable triplets like the BYD Dolphin, Great Wall ORA, and MG4 will drive further growth by the end of the year.
Hydrogen Cars and PHEVs
In 2023, ten hydrogen cars were sold, but no new ones were registered in September. On the other hand, PHEVs saw a 141% increase compared to last September’s results. Japan is the primary source of Australia’s new cars, followed by Thailand (where most utes are made) and China (where most EVs are made). By the end of the year, it is expected that Australia’s fleet of EVs will have doubled compared to 2022 figures.
Top Selling EVs and Future Trends
The Tesla Model Y and Model 3 both made it to the top twenty vehicles sold in September, with the Model Y at #3 and the Model 3 at #20. Other notable EVs in the top 20 include the MG ZS EV and Mitsubishi Outlander (which includes PHEV versions). The Mitsubishi Outlander PHEV is experiencing a resurgence in the Australian market, thanks to a new advertising campaign featuring Russell Coight set in the Australian Outback. Additionally, upcoming releases like the Ford Mustang Mach-E and Renault Megane are expected to bring more competition and options to the EV market in Australia.
Encouraging EV Adoption
Efforts are being made to encourage EV adoption, such as Remserv promoting the Atto 3 to government school teachers through salary sacrifice and novated leasing. The availability of EV options for government employees is a recent development. BYD has also recently launched the Seal and opened a Mega store in Sydney, with plans to increase EV imports to 9,000 per month next year. This suggests that the Australian EV market will continue to grow and undergo further step changes in the coming years.
