EV Sales Increase, But Utility Vehicles Still Rule the Roost in Australia

A Tesla Model Y charges at a EV charge station in Sydney, Australia, on Jan. 19, 2021. Brendon Thorne/Getty Images

Electric vehicle (EV) sales in Australia rose to take up 9.6 percent of the new car market in February, however, utility vehicles still remain the most popular, according to the Federal Chamber of Automotive Industries (FCAI).

FCAI chief executive Tony Weber said the popularity of utes would pose a challenge for the government’s planned fuel efficiency measures, that could limit the sale of certain vehicles deemed to have higher emissions.

“Australian motorists’ strong preference for utes, accounting for 20.3 percent of sales this month, demonstrates the challenges with the proposed New Vehicle Efficiency Standard. Out of 21,327 utes sold in February, only one was an EV,” he said.

Meanwhile, one in five vehicles sold overall were powered by low emissions technologies. Back in February 2023, battery electric vehicles made up only 6.8 percent of the market, while low emissions sales including hybrids made up 13.9 percent.

“Growing sales of electric vehicles across other market segments proves that where a battery electric product exists, which suits the driving habits of Australian motorist’s work and recreation needs, they will purchase these vehicles,” Mr. Weber said.

In February, Australia’s automotive industry sold 105,023 vehicles, 20.9 percent higher than February last year.

Sales in every state and territory improved in February 2024, when compared with the same month in 2023.

Total vehicle sales in the Australian Capital Territory rose 19.9 percent, while they lifted 15.7 percent in New South Wales, and 21.9 percent in Queensland.

In South Australia, vehicle transactions soared 16.3 percent, while they surged 28.5 percent in Tasmania, 29.8 percent in Victoria, 15.3 percent in Western Australia, and 20.1 percent in the Northern Territory.

However, being a leap year, there were more selling days in February 2024 compared to February 2023.

Looking at the top-selling brands, Toyota came in first, recording 19,374 sales in February, compared to 7,350 for Mazda, and 7,275 for Ford.

Nissan sold 6,617 vehicles, while Mitsubishi recorded 6,411 sales.

However, the most popular individual vehicle sold was the Ford Ranger, followed by the Toyota HiLux, Tesla Model 3, Isuzu Ute D-Max, and Toyota RAV4.

New Vehicle Efficiency Standard for Australia

Meanwhile, the federal government is planning to introduce new vehicle efficiency standards for Australia.

The government published an analysis of this new standard on Feb. 4 and closed submissions for a consultation on this plan on March 4.

Climate Change and Energy Minister Chris Bowen claimed Australian families were paying $1,000 a year more than they needed to for fuel every year, due to the lack of action on an efficiency standard.

“We’re giving Australians more choice to spend less on petrol, by catching up with the U.S.– this will save Australian motorists $100 billion in fuel costs to 2050,” Mr. Bowen said.

“This is about ensuring Australian families and businesses can choose the latest and most efficient cars and utes, whether they’re petrol and diesel engines, or hybrid, or electric.”

Transport Minister Catherine King added, “The Albanese government favours a model which ensures achievable change, which will bring Australia in line with U.S. standards by 2028 and provide the optimal cost-benefit outcomes for Australian car buyers.

“The standard increases choice. It doesn’t dictate what sort of car or ute people can buy, but will mean you have a wider range of modern and cheaper to run vehicles.”