FLEETDRIVE into the Australian market by setting emissions targets for new vehicles sold here. In practical terms, it is meant to improve vehicle choice over time by giving suppliers a stronger reason to bring more EVs and other efficient models into Australia.
There is also still support through the Electric Car Discount, particularly the fringe benefits tax exemption for eligible battery-electric and hydrogen fuel-cell vehicles below the luxury car tax threshold. For novated lease buyers, this has remained one of the strongest incentives in the market. FCAI said in February 2026 that balanced incentives remain important to the EV transition, especially as the market moves beyond early adopters and into a more pricesensitive phase.
Adoption Blockers
Despite the growth, several issues continue to slow wider uptake.
The first is price. EVs are becoming more competitive as more brands enter the market, but the upfront cost is still higher than many petrol or hybrid equivalents. The Green Vehicle Guide notes that EVs generally cost more to buy than petrol or diesel vehicles, even if running costs can be lower over time and that initial purchase price remains the hardest part of the decision.
The second is charging access. For drivers who can charge at home, the EV case is usually easier
to make. However, for apartment residents, regional drivers, and businesses without dedicated charging infrastructure, the picture is less straightforward. The National Electric Vehicle Strategy makes infrastructure a central part of EV uptake, reflecting how important charging access still is to buyer confidence.
Range confidence also remains part of the conversation. Official EV range figures are based on test conditions, and real-world performance can vary depending on weather, terrain, load, and driving style. That gap between advertised range and everyday range continues to shape how buyers think about electric vehicles, especially outside metro areas where trips are longer and public charging is less frequent.
Final words
Electric vehicles are now a visible and growing part of Australia’ s automotive market. Sales have strengthened, model choice is broader, and the policy framework is more developed than it was even a year ago. Today, it’ s a question of how quickly they can move from strong growth to wider adoption.
The next stage will depend on familiar issues: price, charging access, vehicle supply and buyer confidence. Those factors will shape whether EVs continue to gain ground quickly or remain part of a broader mix led by hybrids and other loweremission vehicles.
ISSUE 58 APRIL 2026 / WWW. AFMA. ORG. AU 39