Electric Vehicle Revolution in Australia: EV Sales Surge, ICE Cars Decline (2025)

The Future of Australian Roads: A Shift Towards Electric Vehicles

Australia is witnessing a remarkable transformation in its automotive landscape, with electric and hybrid cars taking center stage. For the first time, internal combustion engine (ICE) vehicles have dipped below a 70% market share, signaling a significant shift in consumer preferences.

According to the Australian Automobile Association (AAA), the latest sales data paints a promising picture. Electric vehicles (EVs) now account for a record-breaking 9.7% of new car sales, with a total of 29,298 battery-electric vehicles sold in the September quarter. This surge in EV popularity coincides with a decline in ICE vehicle demand, with sales dropping to 210,458 units in the latest quarter.

But here's where it gets controversial: while the federal government has implemented policies to encourage EV adoption, such as fuel efficiency standards and tax exemptions, there's no set sales target. The Climate Change Authority estimates that EVs need to account for half of all light vehicle sales over the next decade if the Albanese government aims to achieve its greenhouse gas emission reduction goals of 62% to 70% by 2035.

And this is the part most people miss: the role of state and territory governments in supporting this national effort. Aman Gaur, the Electric Vehicle Council's head of legal, policy, and advocacy, emphasizes the need for all levels of government to contribute. He singles out Western Australia, which ended its popular EV rebate scheme, offering buyers a $3,500 discount on eligible EVs.

"Upfront vehicle incentives are crucial to help Australians make the switch. We can't expect a successful transition if only one level of government bears the burden," Gaur said.

So, what's your take on this? Do you think Australia is on the right track with its EV adoption? Or is there more that can be done to accelerate this transition? Share your thoughts in the comments below!

Electric Vehicle Revolution in Australia: EV Sales Surge, ICE Cars Decline (2025)
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