Research Shows Australian EV Interest Accelerates Despite Cost and Charging Concerns

Electric vehicle adoption in Australia remains low but is gathering pace, particularly among younger drivers, according to new research from national insurer Youi.

The Youi EV Data Digest, based on a survey of more than 1,000 Australians and internal quote trends, reveals that while only a small share of drivers currently own an EV, awareness and interest are growing rapidly.

▶️MORE: Best Selling Electric Cars in Australia in 2025

Young Australians Lead the Charge

The data highlights a generational divide in adoption intent:

• Only 7% of Australians have owned or leased an EV to date.
• However, 22% say they’re considering one for their next vehicle.
• Millennials (32%) and Gen Z (27%) show the strongest intent to switch to electric, signalling a shift in preferences as these demographics dominate the car-buying market.

Insurance Data Confirms Rapid Growth

Beyond consumer sentiment, Youi’s own quote data paints a clear upward trend in EV interest.

• EV-related insurance quotes rose from 0.22% in 2019 to 2.78% in 2025.
• That’s a 14% jump since 2024, outpacing growth seen in both hybrid and petrol vehicle quotes.

This steady rise indicates that the Australian EV market is maturing as more affordable models reach local showrooms.

▶️MORE: Everything About Aussie EV Market Trends in 2025

What’s Driving Interest and What’s Holding It Back

The study found that Australian consumers are motivated primarily by practicality and long-term savings rather than novelty.

Despite these hurdles, sustainability is an increasingly powerful influence, with 55% of respondents saying environmental impact is a major factor in their next car purchase. Among current EV owners, 42% cite sustainability as a primary reason for making the switch.

▶️MORE: Tesla and BYD Push EV Sales to Record 11.3% Market Share in Australia

As automakers expand EV lineups and charging infrastructure improves nationwide, industry observers expect these numbers to climb sharply over the next two years.

Youi’s findings underscore that Australia’s EV adoption isn’t stalled — it’s building critical momentum, with younger drivers leading and practical value driving decisions.