UPDATE: Petrol-powered vehicles are rapidly losing ground in Australia, with new reports confirming their market share has dropped to an all-time low as more drivers shift towards electric and hybrid options. The Australian Automobile Association’s latest quarterly Electric Vehicle Index reveals that internal combustion engine cars saw a staggering decline of over 11 percentage points in just two years.
The trend is undeniable: electric vehicle sales peaked in the September quarter, while hybrids continue to gain momentum. This surge follows the federal government’s ambitious 2035 environmental target, which aims for more low-emission vehicles on the roads, even as state governments retract rebates for electric car purchases.
From July to September 2023, traditional petrol vehicles accounted for 69% of all cars sold, a significant decrease from over 81% in the same period last year. The shift represents 37,000 fewer petrol cars sold, highlighting a decisive change in consumer preferences.
Electric vehicles have now claimed their highest market share ever at 9.7% of new sales, while hybrids represent 16.5% and plug-in hybrids account for 4.1%. According to Aman Gaur, head of policy at the Electric Vehicle Council, “The trend is clear: Australians are moving away from petrol cars—these expensive-to-run, environmentally dangerous cars—to options that are better for the environment and the wallet.”
Gaur added that if the current trend continues, petrol cars could be less than 50% of the market by the end of 2027. Factors such as the high cost of petrol and rising inflation are driving consumers to seek more economical alternatives.
Despite the clear shift, data from the EV Index shows that petrol and diesel vehicles still dominate many categories, although hybrids and electric cars together now account for over 80% of medium-sized vehicle sales. They have also surpassed fuel-powered options in the medium-sized SUV segment.
However, to meet Australia’s 2035 emissions target, which calls for a 62% to 70% reduction in emissions, a significantly greater adoption of low-emission vehicles is essential. Gaur urges state governments to reconsider financial support for electric vehicle purchases. “The federal government’s ambition is laudable, and we encourage state governments who have pulled back all vehicle incentives over the past year to recommit themselves,” he stated.
The Climate Change Authority also emphasizes that half of all light vehicles sold in the next decade must be electric to achieve the set emissions goals. With the market dynamics changing rapidly, the automotive landscape in Australia is on the brink of a significant transformation, making it vital for consumers and policymakers alike to adapt swiftly to this evolving scenario.
As the momentum continues to build, all eyes will be on the upcoming quarters to see how these trends develop and what further actions governments and consumers will take in response to this urgent shift away from petrol vehicles.
