Electric vehicle (EV) sales in Australia fell by 25% in the third quarter, as car buyers increasingly shifted to hybrid models, according to data from the Australian Automobile Association (AAA).
EV registrations declined from 25,353 units in the second quarter to 18,990 in the third, reducing their market share from 8.1% to 6.6%, the lowest level in two years. By comparison, the broader car market saw a less pronounced decline of 7.6% over the same period, the AAA said.
Petrol-powered vehicle sales also fell, dropping 9.2%, but hybrid and plug-in hybrid electric vehicles (PHEVs) gained momentum. Hybrid sales increased by 3.3% to 48,282 units, while PHEV sales surged by 56%. Analysts pointed to financial incentives as a key factor in the shift.
“Modern PHEVs now offer such long electric ranges that many buyers find they can cover all of their commuting on battery power and still have the security of a gas tank,” the AAA stated.
EV incentives have been phased out in most regions of Australia, except for Western Australia, creating challenges for buyers. However, PHEVs remain exempt from fringe benefits tax until April 2025, providing significant cost savings for drivers.
“There have been significant quarterly fluctuations over the past seven quarters, but sales figures over that period confirm a clear trend of growth for hybrids, while battery electric vehicle market share appears to have peaked for now,” the AAA added.
