EVs Hit Tipping Point in Australia: 8 Key Insights

2026 is looking like a watershed year for EVs in Australia, with sales up significantly and new brands breaking through with car buyers. We've answered some key questions to guide you through what's happening.

Are EVs at a tipping point?

In terms of new vehicle sales, quite likely.

Looking at the total number of vehicles on Australian roads, the vast majority are still solely powered by petrol and diesel. But in new car sales, buyers are definitely starting to swing to EVs.

Data from the Australian Automobile Association (AAA) shows that during the first quarter of 2026, sales of petrol and diesel engined cars fell by more than 11,600 units, while sales of full electric battery electric vehicles (BEVs) and plug-in hybrids grew by more than 7600 and 3700 units respectively.

That momentum has continued through the year.

The Electric Vehicle Council reported full EVs and plug-in hybrids reached 35.8% of new passenger car sales in June , with almost 49,000 EVs sold and full EVs making up one in every four car sales. At the same time last year, EVs accounted for only 11% of new vehicle sales .

June had some unusual factors, including end-of-financial-year sales and pre-ordered deliveries arriving, so the same pace may not repeat every month. But overall, Australians are buying more new EVs and hybrids.

2. Did the Iran situation make people rethink petrol cars?

The war didn't create the EV trend but talks of a fuel supply crunch certainly made petrol prices harder to ignore.

Commonwealth Bank analysis of weekly card spending to 27 March found fuel prices were the earliest and clearest way the Middle East conflict was hitting the Australian economy, with households feeling the impact most directly at the petrol pump.

Around the same time, CommBank lending data showed a huge 161% lift in demand for EV finance in March compared to February.

3. Are EVs getting cheaper, or are they still pretty expensive?

There are more lower-priced EVs than there used to be.

The federal government's latest National Electric Vehicle Strategy update said there were 153 EV models available by June 2025, up from 104 in 2023-24. It also said there were 26 EV models priced below $50,000, and 55 priced below $60,000.

But that doesn't mean an EV is cheap for every household. The sticker price is only one part of the cost which will vary on things like the car, how far someone drives, where they charge, public charging prices, petrol prices, insurance, servicing, tyres and resale value.

Australia's used-car market is also important. The New Vehicle Efficiency Standard regulator says about 70% of Australians buy their cars second-hand, which means today's new-car mix can shape what is available used later on.

4. What's the difference between an EV, a hybrid and a plug-in hybrid?

There's more than one type of electric vehicle. A full EV runs only on a battery. They have to be plugged in and charged and are also known as "battery electric vehicles", or BEVs.

A hybrid uses petrol or diesel, but also has a small battery that helps the car use less fuel in some driving conditions. You do not plug it in.

A plug-in hybrid sits between the two. It can be plugged in and can run on electricity for shorter trips, but it also has a conventional engine.

The technicalities of the language can be confusing. When some industry groups say "EVs", they include plug-in hybrids. When many people say "EV", they mean a full battery-only car.

5. What car is that? Why am I seeing so many car brands I've never heard of?

The answer is that the makeup of Australian new car market is changing rapidly, and Chinese carmakers are a big part of that shift.

China became Australia's largest source of new vehicles in February for the first time since 1998, based on figures from the Federal Chamber of Automotive Industries and the Electric Vehicle Council.

Commonwealth Bank analysis noted Chinese brands accounted for 587 % of Australia's EV market in H1 2026 , up from 35% a year earlier. It also said Chinese vehicle exports rose 66% in H1 2026 while battery electric and plug-in hybrid exports more than doubled.

"Chinese brands are now dominant suppliers of EVs in Australia," CommBank Sustainable Economist John Oh says .

6. How far can EVs actually go now, and is 'range anxiety' still a thing?

Concerns about how far an EV can go without recharging are one of the major issues in EV adoption. Research published last year by the AAA found 60% of people who said they were open to buying an EV said concerns about range and recharging were their main points of hesitation.

Across the industry, EV battery ranges seem to be improving as new battery technology becomes available. According to one study , between 2011 and 2026, the average EV battery capacity has increased by 319%, from an average of 18.10kWh to 75.8kWh. That's increased average claimed driving range from 110km to 432km.

That's when, according to an ABS study in published in 2020 , the average Australian vehicle travels around 33km a day.

But how far you can drive an EV can depend on a large number of factors, including whether it is city or highway driving. Speed, hills, weather, air conditioning, tyre pressure and load can all also affect how far a car goes on one charge.

It's also worth treating advertised range as a guide, not a guarantee. The AAA says its Real-World Testing Program has found none of 20 EVs it tested matched their advertised laboratory driving range, with shortfalls ranging from 3% to 31%, indicating real-world driving can be quite different to lab testing.

7. What's happening with EV charging? Is it getting easier?

This is one of the biggest practical questions for would-be EV owners.

The federal government's EV strategy update says around 80% of reported EV charging in Australia happens at home. But charging at home is far more challenging when you have to park on the street or somewhere like a shared apartment or garage.

As more EVs hit the road, public charging infrastructure is growing. According to federal government data , by June 2025, there were 1,324 public fast and ultra-fast charging sites and 4,138 fast and ultra-fast charging plugs across Australia, up from 812 sites in December 2023. But Australia has some work to do to catch up to the rest of the world. According to the International Energy Agency , we are right down the bottom of the list of countries when it comes to the chargers per EV, ahead of only New Zealand.

8. I don't own a car. How do EVs affect me?

Petrol and diesel costs can show up in deliveries, tradie call-outs, ride-share, buses, freight and business expenses. EVs and hybrids don't change those costs overnight, and not every business will be affected in the same way, but transport costs can flow through the economy.

More EVs are likely to mean more investment in chargers, and changes in kerbside parking, apartment charging rules, electrical upgrades, and even things like bus depots and training for mechanics.

The way we pay for the roads we all use could change as well. Petrol and diesel drivers pay fuel excise when they fill up, and groups like the AAA argue that the rise of EVs makes means we should now be seriously considering other ways to charge motorists for road usage.

And there is an emissions angle to consider too. The federal government says transport accounts for around 22% of Australia's emissions , with passenger cars and light commercial vehicles alone contributing 60% of transport emissions and more than 10% of Australia's total emissions.

So even without a car, the shift can affect the streets people use, the buses they catch, the parcels they receive, the prices businesses face and the way governments spend money.