Buying a new car was once a straightforward decision, typically a choice between petrol or diesel. Today, Australians are faced with a growing number of EVs, with over 150 models available and more being released every month. While this gives buyers more choice, it has also made the process more complex, particularly as average prices climb beyond what many would consider affordable.
Australia's EV market has changed rapidly in recent years. EVs now account for 16% of all new vehicle sales, up from 10% last year. There are now over 300,000 electric cars on Australian roads. This growth is being fuelled by increased environmental awareness, recent government emissions standards and a national target requiring that half of all new cars sold by 2035 be electric.
Globally, EV sales reached 12.5 million in the first eight months of 2025. In Australia, the market has been significantly influenced by an influx of Chinese manufacturers. Brands such as BYD and GWM have gained popularity by offering affordable, well-equipped models. BYD now sells more cars than Tesla globally, and four Chinese EV brands are among the top ten vehicle manufacturers in Australia. Entry-level models such as the BYD Dolphin ($32,138), MG4 ($36,990) and GWM Ora ($33,990) highlight how competitively priced these vehicles can be.
Despite growing interest in EVs, many buyers remain cautious. Trusted manufacturers like Toyota, Subaru and Mazda either have no fully electric models or only a limited range, while others are priced well beyond the reach of average buyers. The cheapest Tesla Model 3 starts at $54,900, and the Model Y SUV can cost as much as $82,900. German luxury electric cars from Mercedes-Benz, Audi and BMW are priced above $90,000, which pushes them into Australia’s Luxury Car Tax bracket, applying a 33% rate for any cost above $91,387.
For buyers on a budget or new to electric driving, hybrids are an appealing transitional option. They offer a combination of electric and petrol driving, providing a more familiar experience. Others are exploring novated lease options, which can include tax benefits and may make EV ownership more achievable.
Australia's shift toward electric motoring appears inevitable and is already in full swing. However, with prices on the rise, trust in traditional brands being tested and the number of choices continuing to increase rapidly, buyers are now faced with more difficult decisions than ever before.
