Australia on the Verge of a Petrol and Diesel Car Revolution: Electric Vehicles Take the Lead in Sales
- Australian drivers are ditching traditional petrol-powered cars in favour of electric and hybrid vehicles, with sales reaching an all-time high.
- The market share of internal combustion engine cars has plummeted by over 11 percentage points in just two years, as eco-friendly alternatives continue to gain popularity.
- Experts predict that petrol cars could make up less than 50 per cent of the market by the end of 2027, as Australians become more environmentally conscious and cost-aware.
The shift towards a more sustainable future has never been more apparent, with the latest figures from the Australian Automobile Association revealing a significant drop in petrol-powered car sales. According to the quarterly Electric Vehicle Index, electric cars have registered their highest market share yet at 9.7 per cent of new car sales, while hybrids represented 16.5 per cent of the market and plug-in hybrids made up 4.1 per cent.
‘The trend is clear: Australians are moving away from petrol cars, these expensive-to-run, environmentally dangerous cars, to cars that are better for the environment and better for the hip pocket,’ said Aman Gaur, policy head at the Electric Vehicle Council.
The high cost of petrol and rising inflation have played a significant role in the change, as more motorists seek ways to reduce household costs. ‘By the end of 2027, petrol cars could be less than 50 per cent of the market,’ Mr Gaur predicted.
Data from the EV Index showed that petrol and diesel-powered cars still dominated sales in most vehicle categories despite their falling popularity, with some exceptions. Hybrid and electric cars together made up more than 80 per cent of medium-sized vehicles sold, and they also outnumbered fuel-powered options among medium-sized SUVs.
However, Mr Gaur warned that significantly greater adoption of low-emission vehicles would be needed to meet Australia’s 2035 environmental target. He urged state and territory governments to reconsider reinstating financial support for the purchase of eco-friendly vehicles.
‘The federal government’s ambition is laudable, and we’d really encourage the state governments who have pulled back all vehicle incentives in the last 12 months to recommit themselves,’ he said.
The Climate Change Authority found that 50 per cent of all light vehicles purchased in the next decade would need to be electric to meet the government’s emissions target of a reduction between 62 and 70 per cent.