With the current fuel crisis, electric vehicles (EVs) are suddenly looking a lot more attractive to everyday Australians. But the real question is whether this is enough to genuinely move the needle on EV adoption or simply spark interest without driving lasting change.
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In 2025, EVs (plug-in hybrid and full battery electric vehicles) made up around 13 per cent of new car sales in Australia, up from 8 per cent in 2023 and 9 per cent in 2024. This is a clear step in the right direction, but still a long way from EVs being mainstream. What will it take to really move the needle?
When we compare Australia’s uptake of EVs to the rest of the world, the contrast is stark. Europe and China are surging ahead, while Australia’s transition most closely mirrors the US market: gradual, uneven, and constrained by limited policy support, infrastructure gaps, and consumer uncertainty.
So what is holding us back?
At its core, Australia’s EV challenge comes down to demand. With around 120 models available to buy today, what is stopping consumers from making the switch?
For most buyers, three key issues remain: range anxiety, charging infrastructure, and cost.
Range anxiety
The central question is: can I get there on a single charge?
Australia is a car-dependent country, with most people commuting by car daily. The good news is that the typical weekday commute across Australia is approximately 40 kilometres per day, which is well within the range of even entry-level EVs.
However, anxiety is rarely about the daily commute. It is about the exceptions: weekend trips, regional travel, or holiday drives. The average EV range in Australia is now around 400 km, with some models offering significantly more. For example, the Tesla Model 3 Long Range offers approximately 750 km, while the upcoming Volvo EX60 is expected to offer up to 810km.
This is more than sufficient for most use cases. Even the occasional long distance trip of around 1000 km is now feasible with modern EVs and improving fast charging networks. However, uncertainty about where and how to recharge on longer journeys continues to weigh on consumer confidence.
Infrastructure
Charging infrastructure is arguably the most visible barrier.
For homeowners with a garage or driveway, daily charging is relatively straightforward. But for apartment dwellers and renters, the experience is very different. Installing a home charger is not always possible or cost-effective, which means relying on public charging networks.
The same challenge applies to long distance travel. Key concerns remain: Will there be a charger when needed? Will it be operational? How fast will it charge? And will there be queues?
Until charging feels as reliable and ubiquitous as petrol stations, these concerns will continue to slow adoption.
Cost
Cost remains a critical factor.
For most consumers considering an EV, the primary motivation is not environmental; it is economic. As of 2025, around 74 per cent of current or prospective EV owners cite lower running costs as a key reason for purchase.
EVs are cheaper to run, cheaper to service, and in the context of the current fuel crisis, their appeal is likely to strengthen further.
However, while running costs are lower, upfront purchase prices remain higher than comparable internal combustion engine vehicles. For many households, cost-of-living pressures combined with higher upfront pricing remain a significant barrier.
The need for coordinated policy
Australia’s slow EV transition is not a challenge of consumer interest alone. It reflects a broader lack of coordination. Real progress depends on policies that actively remove barriers to entry and enable infrastructure to scale ahead of demand.
Without clearer incentives and sustained investment, Australia’s lagging behind Europe and China is likely to persist.
At the same time, there is a missed opportunity: leveraging Australia’s abundant wind and solar resources to reduce reliance on imported fuels and strengthen resilience against future fuel price shocks.
To truly move the needle, Australians need confidence that EVs are affordable, practical, and supported by infrastructure that works consistently when needed.