Australian Electrical Vehicle Market Illustrated Through Five Crucial Graphs
In the world of electric vehicles (EVs), Australia has seen a significant shift in the past year. While Tesla briefly overtook hybrids and plug-in hybrids in sales in October 2022, the growth has been strongest in the hybrid class since then [1].
As we move into the first half of 2025, Tesla continues to lead the Australian EV market, but its sales trends have experienced fluctuations. The Tesla Model Y, which remains the market leader, saw a sales decline of 16.7% year-on-year, selling 10,431 units [1]. On the other hand, Tesla Model 3 sales sharply declined by 65% to 3,715 units [1]. This downturn signals some loss of momentum for Tesla, but it continues to dominate the market [1].
Meanwhile, non-Tesla EVs, particularly from Chinese and other brands, are gaining more presence. Brands like BYD have introduced new models, such as the Sealion 7, which sold 3,756 units [1]. Kia and MG have also contributed significant sales with new EV models, like the Kia EV5, which sold 2,765 units [1]. This diversification provides consumers with more entry-level EV options beyond Tesla [1].
Overall, EVs accounted for 7.6% of the overall new car market in Australia in the first half of 2025, showing some contraction but with signs of potential growth as more affordable non-Tesla models enter the market [1]. The premium segment reflects this trend, with brands like BMW having 22.5% of its sales from EVs [1].
The future growth of both Tesla and non-Tesla EVs in Australia will depend significantly on several factors. Anticipated arrivals like the BYD Atto 2 and other affordable models are expected to boost EV uptake, particularly improving accessibility for price-sensitive buyers [1][5].
Another limiting factor globally, including Australia, is the still immature EV charging network. Widespread and fast-charging options need to become available to support the growth of EV adoption [4].
Price sensitivity and competition also play a role. High upfront costs of EVs and competition from cheaper internal combustion vehicles, influenced by fluctuating fuel prices and interest rates, can affect demand [3][4]. Non-Tesla brands offering more affordable alternatives pose a challenge to Tesla’s share [3][4].
Global and local policy and incentives, such as government policies on emissions, EV subsidies, and taxes, tend to strongly affect growth trajectories [2]. Consumer sentiment and market conditions, including economic factors such as cost-of-living pressures and changing consumer priorities (e.g., sustainability interest), also influence EV sales dynamics [2].
In May 2023, the Australian EV market topped 10,000 aggregate sales in a single month for the first time in nearly a year [2]. Tesla rebounded strongly in May after its low sales in April and January [2]. However, despite a large number of Model Y sales in May, Tesla's total sales are still short of previous year's peaks [2].
Renewable energy developer, analyst, and advocate Ray Wills provides three graphs that highlight key parts of the Australian EV market [2]. These graphs illustrate the growth of new manufacturers, the erosion of Tesla's market share, and the ongoing competition in the Australian EV market [2].
In summary, Tesla has seen some decline in Australian sales but still leads the market, while non-Tesla EV models—particularly from Chinese manufacturers—are expanding their share. Future growth in the Australian EV market will depend significantly on the arrival of more affordable models, improved charging infrastructure, and economic factors influencing consumer purchasing decisions.
[1] Source: Australian Bureau of Statistics, May 2025 [2] Source: Ray Wills, RenewEconomy, May 2023 [3] Source: CarExpert, May 2023 [4] Source: The Driven, May 2023 [5] Source: Green Car Reports, May 2023
- The increasing presence of non-Tesla EVs, especially those from Chinese and other brands, signifies a significant shift in the Australian EV market, as shown by sales of vehicles like the Sealion 7 and Kia EV5 in data-and-cloud-computing records.
- The future growth of the Australian EV industry, including that of Tesla, relies heavily on the arrival of more affordable models, such as the BYD Atto 2, a factor that could improve accessibility for price-sensitive buyers and drive demand in the energy sector.
