New data shows fuel crisis triggered record EV sales in Australia

Australian electric vehicle sales more than double since outbreak of war in Iran Sun 2 Aug 2026 at 11:43am In short: Australia has recorded its biggest-ever quarterly surge in electric vehicle sales. Across April, May and June, nearly one in every two vehicles sold was either electric or hybrid. What's next? Liberal deputy Jane Hume says the figures show EV subsidies introduced by the government in 2023 had grown "out of control". Australia has recorded its biggest-ever quarterly surge in electric vehicle sales, with new figures showing EV purchases doubled in the three months to June 30. At 49 per cent, nearly one in every two new vehicles sold was either electric or hybrid, with the spike coinciding with soaring fuel prices at the start of April following the war in Iran and the closure of the Strait of Hormuz at the end of February. The data, from the Australian Automobile Association, shows that fully electric vehicle market share jumped from 12.25 per cent to more than 21 per cent in six months. It means fully electric vehicles outperformed hybrid model EVs for the first time, despite hybrids recording their second-highest share on record. Meanwhile, market share of non-electric vehicle sales took a nose dive, falling to 50.84 per cent of June quarter sales, down from 64.23 per cent. Opposition says EV subsidies 'out of control' Deputy Liberal leader Jane Hume told Insiders the figures showed the electric vehicle market does not need more government subsidies, which she said had "run out of control". "I think that's the market speaking with its feet, and probably why we don't necessarily need more subsidies on electric vehicles," she said. "Unfortunately, the subsidy program that's been run by this government has run out of control, and it's costing Australians more and more." In May's federal budget, the government announced a slow winding down of its generous tax discounts that encouraged more people to buy EVs, which will save $1.7 billion over four years. The discount was introduced to consumers at the start of 2023 and made electric vehicles thousands of dollars cheaper through an exemption to fringe benefit tax. Initially expected to cost taxpayers $605 million over seven years, the policy blew out to almost 15 times the original projection to more than $1 billion. Discount to roll back from April From April next year, the tax exemption will still apply to electric vehicles costing less than $75,000, but those above that threshold will only get a 25 per cent discount on the fringe benefits tax. From April 2029, all electric vehicles below the luxury car tax threshold will receive a 25 per cent tax discount. Climate Change Minister Chris Bowen has previously said the government was scrapping the discount because it had done its job, creating a boom in EV uptake that has driven investment in charging stations and other infrastructure. With more Australians driving EVs, car dealers are now calling on the federal government to update Australian Consumer Law to better protect Australians who purchase EVs from manufacturers overseas.