Australians are showing strong interest in electric vehicles as the war involving Iran throws fuel prices and energy security into sharper focus.
New CommBank data shows that since 1 March, new loans for battery electric vehicle (BEVs) were up 161.5% compared to the weekly average volume recorded in February, before the conflict in Iran began.
On the bank’s Cars for CommBank portal – a carbuying assistance service operated in conjunction with Vyro and AutoGrab - EV purchase enquiries had increased by 136% in March, data showed.
Interest in EV finance options is also spiking, CommBank reported, with average daily visits to its EV Car Loan product page up 75% in March compared with February, suggesting more Australians are actively weighing up the numbers before buying.
“Our finance options tailored for energy-efficient and electric vehicles have been gaining in popularity since we first launched them in 2024,” CommBank Product Owner for Car Buying and Lending Tim Burdon said. “But there are now more affordable EV and hybrid models available in Australia, giving customers even more choice and range, and the surge in interest we’ve seen in March is very significant.”
Fuel crunch spiking interest
Since early March, Australia has been grappling with a fuel squeeze linked to disruption through the Strait of Hormuz, with higher global oil prices and supply concerns pushing petrol and diesel costs up significantly for Australian consumers and businesses.
The surge in EV interest is not limited to households, CommBank reported, with EVs also proving popular with Australian businesses. Business loan applications for Tesla vehicles alone are up 268% to date in March compared with the same time last year, the bank said. The bank expects demand to continue under current macro conditions, a sign that fleet operators and small businesses are also reassessing running costs at a time when fuel volatility has become a live issue.
EV sales already climbing
That rising interest is landing in an EV market that was already moving. According to the Electric Vehicle Council, EVs (including battery electric and hybrid) accounted for 13.1% of all new car and light commercial vehicles sales in Australia across 2025, up from 9.6% in 2024. December alone set a record, with EVs making up 16.7% of new car sales for the month.
FCAI data shows BEVs alone accounted for 8.3% of total Australian vehicle sales across 2025, underscoring that electric cars are now a meaningful part of the mainstream market rather than a niche purchase.
Last week Australia and the European Union concluded free trade agreement negotiations which includes the removal of Australia’s 5% tariff on European imports and a lift in the luxury car tax threshold for EVs to $120,000. If implemented, those changes could improve affordability for some European and European-made electric vehicles sold in Australia.
