Australia’s electric vehicle (EV) market trends show consumer demand is shifting rapidly toward electric sport utility vehicles (SUVs) and utes as prices fall, model choice expands and policy settings reshape purchasing decisions. New analysis from charging infrastructure provider JET Charge shows that 2025 delivered stronger-than-expected growth and set the foundations for EVs to move firmly into the mainstream.
According to JET Charge, Australia recorded 156,958 EV sales in 2025, representing a 38 per cent increase on 2024 and exceeding most industry forecasts. Growth was driven primarily by increased vehicle availability and narrowing price premiums, with medium SUVs and electric utes emerging as the dominant segments.
Medium SUVs now account for the largest share of EV sales, increasing their segment penetration from 16 per cent in 2024 to 27 per cent in 2025. The number of electric medium SUV models expanded from 30 to 45 over the year, while the EV price premium narrowed to around 18-22 per cent, significantly improving affordability for private and fleet buyers alike.
Electric utes delivered the most dramatic growth. Sales surged from just 362 units in 2024 to more than 20,600 in 2025, capturing around eight per cent of the overall ute market. This growth was led by new entrants such as the BYD Shark, which became the fourth-highest-selling ute overall. In contrast, small SUVs and small passenger vehicles underperformed, reflecting ongoing price sensitivity and a shift in consumer priorities amid broader economic pressures.
Policy settings have played a critical role in shaping these outcomes. The introduction of the New Vehicle Efficiency Standard (NVES) and the continuation of Fringe Benefits Tax (FBT) exemptions have incentivised manufacturers to electrify larger vehicles, while novated leasing demand has further boosted Medium SUV sales. Smaller vehicles, by comparison, remain more attractive as hybrids for both consumers and original equipment manufacturers seeking to manage NVES compliance costs.
Looking ahead, JET Charge expects medium SUVs to continue driving EV growth in 2026, supported by increasing model competition and near price parity with internal combustion engine vehicles.
Kristian Handberg, Head of Future Business at JET Charge, said the segment reflects: “Where the rest of the EV market needs to get to – a highly competitive market of EV options with an increasingly narrow price gap to non-EV alternatives.”
Whole-of-life economics are now tipping decisively in favour of electrification. Many passenger vehicles, SUVs and light commercial EVs have reached cost parity with petrol and diesel equivalents when fuel, maintenance and servicing are taken into account. Several high-volume EV models have fallen in price by 20-40 per cent since 2022, with some now available below $30,000 drive-away, accelerating interest from corporate and government fleets.
Despite this momentum, policy certainty remains critical. JET Charge modelling suggests that retaining the FBT exemption could lift sales to around 195,000 vehicles, compared with just 167,000 if the incentive is withdrawn.
JET Charge expects two additional trends to support growth: A rapid expansion of public charging infrastructure across metropolitan and highway locations, and large-scale fleet electrification as total cost of ownership benefits become better understood.
