Have EVs reached a tipping point in Australia? 8 things you need to know 

2026 is looking like a watershed year for EVs in Australia, with sales up significantly and new brands breaking through with car buyers. We’ve answered some key questions to guide you through what’s happening. 

 1. Are EVs at a tipping point?

In terms of new vehicle sales, quite likely.

Electric vehicles, including battery EVs and plug-in hybrids, accounted for 25% of all new-car sales in the first half of 2026, up from 12% a year earlier[JO1] . Almost 158,000 were sold over the six months to June, according to the Electric Vehicle Council.

The momentum has continued. In September, battery EVs alone represented 24% of new-car sales, with more than 26,200 sold,  and battery EVs outsold petrol-powered cars for a second consecutive month.

Petrol and diesel vehicles still dominate the total fleet, but Australia’s battery EV and plug-in hybrid fleet had reached about 612,000 vehicles by the end of June, after passing 500,000 in March.

2. Has the Iran situation made people rethink petrol cars?

High fuel prices being driven by the conflict in the Middle East are certainly one part of the story, but they didn’t create the EV trend and they’re not the only reason people are choosing EVs.

When fuel supply concerns pushed petrol prices higher in March, Commonwealth Bank recorded a 161.5% lift in weekly loan volumes for new battery EVs compared with the February average. EV purchase enquiries through Cars for CommBank also rose 136% in March.

But sales have remained strong well beyond that initial fuel-price shock.

“Commonwealth Bank recorded a 171% lift in year-on-year loan volumes for new battery EVs in Q1 FY27 compared with Q1 FY26,” CommBank auto lending Product Stream Lead Tim Burdon said.

“EVs make up the majority of fuel-filtered searches on Cars for CommBank with 69.7% of customers searching for an EV in September.”

The ongoing interest suggests the shift is also being supported by a wider range of models, stronger competition and buyers looking at the longer-term cost of running a car.

3. Are EVs getting cheaper, or are they still pretty expensive?

There are more lower-priced EVs than there used to be, and buyers have far more choice.

The Electric Vehicle Council says 196 battery EV and plug-in hybrid models were available in Australia in 2026, up from 153 in 2025. That includes 125 battery EV models and 71 plug-in hybrids.

More competition can help on price, but an EV still won’t be the cheapest option for every household. The sticker price is only part of the equation. Running costs can vary depending on how far someone drives, where they charge, electricity and petrol prices, insurance, servicing, tyres and resale value.

Australia’s used-car market is also important. The New Vehicle Efficiency Standard regulator says about 70% of Australians buy their cars second-hand, which means today’s new-car mix can shape what is available used later on. 

4. What’s the difference between an EV, a hybrid and a plug-in hybrid?

There’s more than one type of electric vehicle. A full EV runs only on a battery. It has to be plugged in and charged and is also known as a battery electric vehicle, or BEV.

A hybrid uses petrol or diesel, but also has a small battery that helps the car use less fuel in some driving conditions. You do not plug it in.

A plug-in hybrid sits between the two. It can be plugged in and can run on electricity for shorter trips, but it also has a conventional engine.

The language can be confusing. Some industry groups use “EV” to include plug-in hybrids, while many drivers use the term to mean a full battery-only car.

5. What car is that? Why am I seeing so many brands I’ve never heard of?

The makeup of Australia’s new-car market is changing quickly, and Chinese-made vehicles are a major part of that shift.

In February, China became Australia’s largest source of new vehicles for the first time since 1998, based on figures from the Federal Chamber of Automotive Industries and the Electric Vehicle Council.

In September, China supplied 35.5% of all new vehicles sold in Australia, taking top spot ahead of Japan at 22.5% and Thailand at 17.3%. The change goes beyond EVs, but electric cars have been an important part of the growth.

CommBank analysis earlier in the year found Chinese brands accounted for 57% of Australia’s EV market in May, up from 33% a year earlier. Lower-priced models and a growing number of brands are giving buyers more options across small cars, SUVs and other segments.

“Chinese brands are now dominant suppliers of EVs in Australia,” CommBank Sustainable and Energy Economist John Oh says.

6. How far can EVs actually go now, and is ‘range anxiety’ still a thing?

Range and recharging are still important questions for people considering an EV. The distance a car can travel on one charge has improved as batteries have become larger and more efficient, but the advertised figure is still only a guide.

Real-world range can change with highway speeds, hills, weather, air conditioning, tyre pressure and how much weight the car is carrying. The Australian Automobile Association’s real-world testing has also found EVs can fall short of their laboratory range figures.

For many drivers though, how convenient it is to recharge a car can be just as big a consideration as range.

7. What’s happening with EV charging? Is it getting easier?

This remains one of the biggest practical questions for would-be EV owners.

Home charging is still central to EV ownership, but it is much easier for people with a driveway or garage than for renters, apartment residents and people who rely on street parking.

The public network is expanding quickly. The Electric Vehicle Council says Australia had 4,268 public charging locations and 11,602 public charging connectors by June 2026. It says the number of locations was up 235% from June 2025, while the number of connectors rose 175%.

But Australia has some work to do to catch up to the rest of the world. According to the International Energy Agency, we are right down the bottom of the list of countries when it comes to the chargers per EV, ahead of only New Zealand. 

More chargers also don’t solve every problem by themselves. Drivers still need reliable charging sites in the right places, particularly on regional routes and at busy times like school holidays. Apartment buildings, workplaces, depots and commercial fleets also have different charging needs.

8. I don’t own a car. How do EVs affect me?

The shift is already large enough to show up in broader economic data.

Vehicle purchases jumped 10% in the June quarter, with the Australian Bureau of Statistics saying a rise in EV purchases helped drive household consumption. Car imports also rose 28% over the quarter, which CommBank Economist Harry Ottley said likely reflected the surge in EV demand.

For people who don’t own a car, transport costs can still flow through deliveries, tradie call-outs, ride-share, buses, freight and business expenses. A growing EV fleet can also mean more investment in public chargers, apartment charging, electrical upgrades, bus depots and training for mechanics.

The way we pay for the roads we all use could change as well. Petrol and diesel drivers pay fuel excise when they fill up, and groups like the AAA argue that the rise of EV makes means we should now be seriously considering other ways to charge motorists for road usage.

And there is an emissions angle to consider too. The federal government says transport accounts for around 22% of Australia’s emissions, with passenger cars and light commercial vehicles alone contributing 60% of transport emissions and more than 10% of Australia’s total emissions.

So even without a car, the shift can affect the streets people use, the buses they catch, the parcels they receive and the costs businesses face.