Australia has posted its strongest quarter on record for electric vehicles (EVs) sales, with new figures highlighting both the momentum of the market and the risks of pulling back policy support too soon.

Data from the Australian Automobile Association reveals that 41,146 new EVs were sold nationwide in the second quarter of 2025. That includes 29,244 battery electric vehicles (BEVs) and 11,902 plug-in hybrids (PHEVs), representing 13.1% of all new car sales in the quarter.

The result marks a 37% increase on the same period last year, when 38,028 EVs were sold, making up 9.6% of the market.

Electric Vehicle Council (EVC) chief executive Julie Delvecchio says the figures show more Australians are recognising the benefits of going electric, from lower running costs to environmental gains.

“Australian drivers are discovering what early adopters already knew: EVs are better for the family budget. They’re great to drive, better for the environment and cheaper to run,” she says.

“We’re still in the early stages of transition and numbers remain short of what’s needed for a self-sustaining market. EVs need to make up at least 30% of all new car sales in Australia before governments can responsibly consider withdrawing incentives or imposing taxes.”

Proposals to remove the fringe benefit tax (FBT) exemption introduce road user chargers risk stalling momentum, Julie argues. She credits the Federal Government’s New Vehicle Efficiency Standard and FBT exemption for helping make EVs more accessible.

“Australia now offers EVs for every lifestyle and preference, from utes and SUVs to sedans and hatchbacks. More EVs on our roads benefit everyone,” she says.

“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 EVs essential for a more sustainable, healthier and resilient future.”