EV incentives must be retained: Electric Vehicle Council

Following a record-breaking quarter for EV sales in Australia, the Electric Vehicle Council is urging the government to retain its EV incentives and policies in order to sustain uptake and drive down emissions.

Figures from the Australian Automobile Association show 41,146 new EVs were sold across the country in the second quarter of 2025, which:

• includes 29,244 battery electric vehicles (BEVs) and 11,902 plug-in hybrid electric vehicles (PHEVs);
• represents 13.1% of all new car sales for the quarter; and
• is up 37% on Q2 2024, when 30,028 EVs were sold and represented 9.59% of sales.
   

“Australian drivers are discovering what early adopters already knew: electric vehicles are better for the family budget. They’re great to drive, better for the environment and cheaper to run,” said Electric Vehicle Council CEO Julie Delvecchio.

“It’s encouraging to see EV sales climb, but we’re still in the early stages of the transition, and numbers remain well short of what’s needed for a self-sustaining market. Electric vehicles need to make up at least 30% of all new car sales in Australia before governments can responsibly consider withdrawing incentives or imposing taxes.”

Delvecchio cautioned that the Productivity Commission’s call for road user charges and the removal of the FBT incentive risked slamming the brakes on growth. “These proposed changes will abruptly stall the shift to EVs, which benefit everyone through lower energy bills and cleaner air,” she said.

“Australia’s strongest quarter for EV sales yet is a testament to the current federal policies and incentives fuelling this growth. The New Vehicle Efficiency Standard is giving Australians more choice than ever before in low- and zero-emission cars. Combined with the discount on EVs through the FBT exemption, more everyday Australians are making the switch — and once they go electric, they don’t look back.”

Delvecchio said that with transport set to become Australia’s largest emissions source by 2030, it was essential to keep supporting and motivating Australians to choose electric vehicles.

"More electric vehicles on our roads benefit everyone — they cut emissions, improve air quality, create quieter streets, reduce Australia’s reliance on foreign oil and help build a stronger energy grid. These collective benefits make electric vehicles essential for a more sustainable, healthier and resilient future.”

Image credit: iStock.com/SimonSkafar