Electric Vehicle Market Share in Australia Reaches Record High in H1 of 2023
Will Australia become a frontrunner in the global EV market?
The adoption of electric vehicles (EVs) in Australia is on the rise, with EVs accounting for a significant percentage of new vehicle sales in the first half of 2023. The market share of EVs has quadrupled in just 12 months, signaling a growing shift towards sustainable transportation.
The first half of 2023 saw an impressive surge in the adoption of electric vehicles in Australia. Battery electric vehicles accounted for a record-breaking 7.4% of total new vehicle sales, marking a significant increase from the previous year’s market share of 1.8%. This four-fold increase in just 12 months showcases the growing preference for EVs among Australian consumers.
The pace of adoption has been accelerating with each passing quarter. In the second quarter of the year, EV sales reached 25,752 units, a remarkable 48% increase from the previous quarter’s sales of 17,399 units. This surge in sales led to an even higher market share of 8.2% for EVs in Q2, compared to 6.5% in Q1.
There is now a diverse range of electric passenger cars, SUVs, and light commercials available in the Australian market. In fact, there are currently 45 different EV models from 24 different car brands that have found at least one customer this year. The increasing variety of EV options is contributing to the overall growth of the EV market.
Insights from the first half of 2023 reveal some interesting patterns in EV sales. Around 60% of all EVs sold were made by Tesla, solidifying its dominance in the market. The Tesla Model Y emerged as the top-selling SUV, while the Model 3 claimed the title of the overall top-selling passenger vehicle, regardless of fuel type. Interestingly, all of the top seven EVs in Australia are sourced from China, including models from Tesla, BYD, MG, Volvo, and Polestar. The majority of EVs sold in Australia, a staggering 86.9%, are imported from China.
The Australian Capital Territory (ACT) stands out with an impressive EV market share of 20%. This can be attributed to the government’s adoption of EVs in their fleet. Despite being the most expensive state in Australia to buy and run an EV, Victoria’s market share aligns with the national average. Mercedes-Benz boasts the widest range of EV models with seven options, yet their EV market share remains low at just 2.7%.
When it comes to passenger vehicles, EVs hold a significant market share of 14.1%, with 14,641 pure electric vehicles sold out of a total of 103,927. The SUV segment also sees a decent EV market share of 8.8%, with 28,628 EV sales out of 322,213 total sales. However, the light commercial segment, which includes utes and vans, has a long way to go in terms of EV adoption. Only a minuscule 0.06% of sales in this segment were EVs.
In terms of alternative fuel options, EVs have outperformed hybrid vehicles in terms of sales. H1 of 2023 saw 43,151 EV sales compared to 38,313 hybrid sales. However, it should be noted that Toyota, which dominates the hybrid market, is facing supply constraints. Plug-in hybrid electric vehicles (PHEVs) have not gained much traction, with only 3,532 units sold in H1 of 2023.
As we move into the second half of 2023, there are several factors that could further boost EV sales in Australia. Tesla’s recent price reduction and eligibility for state rebates, along with the ongoing price war among Chinese brands, are likely to make EVs more affordable and attractive to consumers. Additionally, improvements in the global logistics chain will support the growth of EV sales in Q3 and Q4.
Overall, the first half of 2023 has been a groundbreaking period for the EV market in Australia. With a record market share of 7.4% and increasing adoption rates, EVs are becoming a significant player in the automotive industry. The shift towards sustainable transportation has the potential to reshape the future of mobility in Australia and beyond.
- Battery electric vehicles made up 7.4% of total new vehicle sales in H1 of 2023
- EV market share increased from 1.8% to 7.4% in just one year
- EV sales in Q2 were 48% higher than in Q1
- There are currently 45 different EV models available in Australia
- Tesla dominates the EV market with a 60% market share
As EV sales continue to soar in Australia, it is evident that a greener and more sustainable future is on the horizon. With rising market shares, a diverse range of models, and ongoing developments in affordability, the electric vehicle revolution is gaining momentum. The question is no longer if EVs will dominate the roads, but rather when.
