Electric vehicle sales in Australia have hit a two-year low, with consumers leaning towards traditional combustion engines or hybrids.
Data from the Australian Automobile Association revealed just 17,914 EVs were sold during this year's March quarter, making up barely 6% of nationwide vehicle sales.
The quarterly report also found that 2023 was the last time EV sales fell to this level.
EVs have also dropped market share compared to the final three months of 2024.
21,331 EVs were sold in the last quarter of 2024 making up 7.42% of the country’s vehicle sales, or a decline of 1.12% in market share quarter-to-quarter.
CEO of the Federal Chamber of Automotive Industries, Tony Weber, said he believed the Australian EV industry needed long-term government support to bounce back and thrive.
“Subsidies remain central to the success of EV policy in many leading markets. In European markets and other markets around the world, including New Zealand, demand for electric vehicles softened when governments reduced subsidies,” said Weber to carsguide.com.au.
“While many EV buyers pay a premium as early adopters, consumers are generally price sensitive. There is no doubt that EV sales in Australia have been enhanced by subsidies,” said Weber.
