Electric car sales dip in Australia following peak levels, but the EV market remains resilient

Electric car sales dip in Australia following peak levels, but the EV market remains resilient

The honeymoon period for the electric vehicle sales boom in Australia may be over, but reports of the death of EV sales are greatly exaggerated. Recent data reveals a decline in sales of electric vehicles in Australia, with Tesla deliveries dropping by a third. Despite this, the demand for electric vehicles has not plummeted as some viral footage may suggest.

In June 2024, 8.3% of new vehicles reported as sold were electric, slightly down from the 8.8% recorded the previous year. This decline in sales is part of a broader trend in the new-car market, which experienced its first stumble after 14 months of consecutive growth.

While the electric vehicle market has slowed in growth, industry analysts assure that it has not collapsed. Uncertainties among potential buyers about charging infrastructure and the price gap between EVs and petrol-powered vehicles remain significant hurdles to widespread adoption.

Despite the recent decline, electric vehicle sales for the first half of the year are still up by 18.1%, outperforming the market’s growth rate of 8.0%. This growth rate is lower than the record levels seen in 2022 and 2023 when sales were doubling or tripling each month compared to the previous year.

It is crucial to look at the trend rather than monthly fluctuations in electric vehicle sales, according to James Voortman, CEO of the Australian Automotive Dealers Association. While Tesla’s performance has been a key factor in the recent decline, excluding Tesla shows a 30.6% growth in sales from other brands last month.

In comparison, demand for hybrids has surged, with a 113% increase year-to-date, led by Toyota. Plug-in hybrid vehicle sales are also on the rise, up 130% year-to-date, indicating a growing interest in lower-emission vehicles among buyers.

While electric car sales have experienced a dip, the overall EV market remains resilient. It is clear that the shift towards more sustainable transportation options is ongoing, as evidenced by the continued interest in electric and hybrid vehicles in Australia.