Electric State: An Overview of Australia’ s EV Landscape
WORDS BY ANBY ALCOMENDAS
Australia’ s electric vehicle market has come a long way in a short time. In 2026, EVs are no longer seen as a niche part of the automotive industry. More brands are in the market, more models are available to buyers, and policy settings are doing more to support the shift than they did just a few years ago.
At the same time, the transition is still uneven. Battery-electric vehicle sales are growing, but hybrids continue to hold a larger share of the market. Furthermore, challenges around price, charging access, and real-world performance have not gone away.
EV Market
The EV market in Australia has continued to grow in 2026. According to the Federal Chamber of Automotive Industries( FCAI), battery-electric vehicles accounted for 14.6 per cent of all new vehicle sales in March 2026, with 15,839 EVs sold in that month alone. FCAI described that as the highest EV market share recorded to date, showing that demand is there when model supply and buyer confidence line up.
Even so, battery-electric vehicles are only one part of the broader shift toward lower-emission transport. According to Australian Automobile Association’ s( AAA) EV Index Q4 2025 data, hybrids reached 19.13 per cent of new light vehicle sales, while plug-in hybrids reached 5.32 per cent. Internal combustion vehicles still held
66.30 per cent of the market. Many car buyers are moving toward electrification, but a large share are still choosing options that feel closer to conventional ownership and do not depend as heavily on charging infrastructure.
Buyers also have more choice than they used to. The federal government’ s National Electric Vehicle Strategy says increasing the supply of affordable and accessible EVs is one of its core objectives, while the Green Vehicle Guide continues to add new models and resources for buyers comparing electric vehicles in Australia. That broader choice is helping move EVs into the mainstream, especially in passenger and SUV segments where more brands now have a presence.
EV Policies
Government policy is playing a much bigger role in the EV market than it did a few years ago. At the centre of this is the National Electric Vehicle Strategy, which sets out three clear priorities: increasing the supply of affordable and accessible EVs, building the systems and infrastructure needed for wider uptake, and encouraging demand. The strategy is also linked to broader national goals around emissions reduction, transport affordability and cleaner vehicle supply.
The most important market reform already in effect is the New Vehicle Efficiency Standard, which began on 1 January 2025. Its purpose is to push a greater share of lower-emission vehicles
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