Australia’s Clean Energy Finance Corporation (CEFC) has committed AUD 100 million (around €60 million) to support electric vehicle adoption, partnering with Volkswagen Financial Services Australia to offer discounted loans for EV buyers.
Under the programme, customers financing eligible electric vehicles through VWFS can receive interest rate reductions of up to 1.0 percentage point, with 0.5 percentage points contributed by the CEFC and 0.5 by VWFS.
The scheme applies to consumer loans for passenger EVs priced below Australia’s Luxury Car Tax threshold, as well as commercial loans for light electric commercial vehicles such as vans and utility vehicles, which are not subject to the same cap.
The initiative is designed to reduce upfront cost barriers and support broader EV uptake, particularly among small and medium-sized enterprises. According to the CEFC, a typical AUD 70,000 loan over five years could generate savings of more than AUD 1,900.
Eligible vehicles include models from brands such as Volkswagen, Audi, Škoda, Cupra and Volvo, along with other EVs available through VWFS’s accredited dealer network.
Richard Lovell, CEFC Executive Director and Head of Debt Markets, said the programme aims to stimulate both new and used EV markets. “We’re making it easier for businesses to choose advanced electric vehicles, including those with future-ready features like V2G, by reducing barriers like high upfront costs and by encouraging manufacturers to increase model availability in Australia,” he said. “This investment helps lower costs today and builds a stronger market for affordable, second-hand EVs tomorrow.”
Ralf Teichmann, Managing Director Front Office at VWFS Australia, said the partnership would support broader adoption. “This partnership with the CEFC is an important step toward accelerating EV adoption in Australia,” he said. “Through partnerships with Original Equipment Manufacturers and our extensive dealer network, and by offering flexible finance options, we make it easier for individuals and businesses to transition to cleaner transport solutions.”
Transport accounts for around 23% of Australia’s total emissions, making it the country’s second-largest emitting sector. While overall emissions declined in 2025, transport emissions rose slightly by 0.3%, highlighting the importance of accelerating electrification.
Since its establishment, the CEFC has financed more than 17,000 electric vehicles, with total commitments exceeding AUD 1 billion, including third-party capital, spanning projects from passenger EVs to electric trucks and bus fleets.
