Australia Electric Vehicle Market Size

Australia EV Market Analysis

The Australia Electric Vehicle Market size is estimated at USD 8.49 billion in 2024, and is expected to reach USD 35.41 billion by 2029, growing at a CAGR of 33.06% during the forecast period (2024-2029).

• The COVID-19 pandemic initially had a negative impact on the market as the shutdown of manufacturing units and lockdowns resulted in a decrease in sales during the first half of 2020. However, eased restrictions coupled with notable initiatives of the government in the form of incentives and relief packages helped the market regain momentum by 2021. For instance, in Australia, 8,688 electric vehicles were sold in the first half of 2021.
• Despite the global coronavirus pandemic, electric car sales have proven unexpectedly resilient in comparison to overall new vehicle sales. Australia was one of the top Asia-Pacific countries in terms of electric car adoption, with a value of about three percent in 2021. Further, in 2022, 33,410 electric vehicles were sold in Australia, setting a new high.
• Over the medium term, increased demand for fuel-efficient, high-performance, and low-emission vehicles, increasingly strict laws and regulations on vehicle emissions, declining battery costs, etc., are expected to act as primary factors driving the market growth over the forecast period. Further, the active presence of key global players like Tesla, MG, and others with a focus on adopting strategies like offering cost-efficient models, product innovations, etc. expected to create a positive outlook for the market in the long run.
• For instance, in January 2023, Aptera announced that the Launch Edition of its hyper-efficient solar-powered battery electric vehicle would go into production in 2023. With its 700-watt solar cell technology, the patented solar technology can add up to 64 kilometers of range. The startup brand revealed in 2022 that the solar cells for its three-wheeler EV will be manufactured. These cells completely cover the car, including the top and all upward-facing surfaces.
• Government regulations to phase out fossil fuel-powered vehicles and government expenditures to improve public EV charging infrastructure are likely to contribute to market development. Further, Increasing investments and product launches by major OEMs in the country and their focus on localizing supply chain facilities create a positive outlook in the market.
• Despite being home to one of the world's most successful charger manufacturers, Tritium DCFC, Australia currently has less than a third of the number of public chargers for every EV on the road compared to the worldwide average.
• However, The NRMA, a motorist services company, is collaborating with the government to establish 135 charging stations across the national highway network over the next two to three years, adding to the 2,392 sites now in place. Moreover, the Australian government has also developed a national EV policy and increased financing for greener transport to AUD 500 million (USD 339 million). Electric vehicle sales in the country are already on the rise, accounting for 8% of total automobile sales in April 2023, up from 1.1% the previous year.
• New South Wales and Victoria are home to the majority of Australia's electric vehicles, followed by the South Australia region. These states play a key role in the growth of the Australian electric vehicle market, with the majority of demand being supported by government initiatives and supportive charging infrastructure.