Australian EV Sales Jump 63% To All-Time High

Australia’s electric vehicle market has hit a major milestone, with battery electric vehicle (BEV) sales surging 63.3% in the second quarter of 2025 compared to the first quarter, according to new figures from the Australian Automobile Association (AAA).

Between April and June, Australians bought 29,244 new BEVs, breaking the previous record of 25,696 set in Q2 2023. This pushed EVs to their highest-ever market share of 9.3% of all new light vehicle sales.

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State-by-State Performance

Queensland recorded the fastest growth, with sales jumping nearly 80% compared to Q1. New South Wales remained the largest EV market by volume, while the ACT led the nation in EV penetration rates.

Medium SUVs Lead the Charge

The medium SUV category has become the first segment where combined sales of BEVs and hybrids have overtaken internal combustion engine (ICE) vehicles. This class now accounts for nearly a quarter (24.55%) of all new light vehicle sales in the country.

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Declining ICE Market Share

The market share for ICE vehicles has continued to slide, falling to 72.03% in Q2 2025 from 86.4% in Q1 2023. Meanwhile, PHEV sales dropped by 13.19% in Q2 compared to Q1, following the removal of the federal Fringe Benefits Tax (FBT) exemption on 31 March. PHEV market share now sits at 3.79%.

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Market Trends and Outlook

The AAA’s data shows hybrid vehicles accounted for 14.8% of all new light vehicle sales in Q2 — the lowest since early 2024. This shift suggests more buyers are bypassing hybrids and moving directly to full EV ownership.

Industry analysts believe the strong quarterly results point to a new phase of mainstream adoption, similar to patterns seen in European markets. The momentum could help Australia reach the federal target of 50% EV sales by 2030, provided that charging infrastructure expands fast enough to meet demand.

Electric Vehicle Council CEO Julie Delvecchio stressed the importance of sustaining growth:

“It’s encouraging to see EV sales climb, but we’re still in the early stages. EVs need to make up at least 30% of new car sales before governments can responsibly scale back incentives or introduce new taxes.”