Australia’s shift toward electric vehicles is picking up pace, with new data from the Electric Vehicle Council showing a sharp rise in both new and used EV demand.
Strong growth led by key brands
Sales from Tesla and Polestar jumped 40 per cent in the first quarter of 2026 compared to the same period last year, with a combined 7,725 vehicles sold.
Momentum continued through March, with 3,645 vehicles delivered — up 21.1 per cent year-on-year and 6.6 per cent on February — signalling sustained demand rather than a short-term spike.
Cost savings and fuel pressures driving demand
EVC CEO Julie Delvecchio said rising fuel costs are a key driver behind the surge, with EVs offering savings of up to $3,000 per year.
“With fuel prices rising, every EV on the road is doing something simple but powerful – taking pressure off fuel supply for the people who need it most.”
“EV drivers are driving the country’s fuel resilience while cutting costs on their household budget. This has never been more important than now, given the PM’s address urging people to use petrol and diesel responsibly and ‘save fuel for people who have no choice but to drive”.
“Volatile global oil markets are changing the conversation. Australians aren’t asking whether EVs are the future anymore. They’re asking which one they can get their hands on, and when.”
Used market and finance demand surge
The trend isn’t limited to new vehicles. Data from Pickles shows second-hand EV sales rose 60 per cent month-on-month in March, while searches jumped 163 per cent.
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Affordability is also improving, with 82 per cent of used EVs selling under $50,000 and 43 per cent under $30,000.
Meanwhile, Commonwealth Bank reported a 161 per cent increase in EV finance demand since the start of March, highlighting growing consumer confidence.
Supply racing to keep up
For manufacturers, demand is quickly translating into stock pressure.
“The fuel crisis is pushing Australians to look for more certainty – both on energy and cost of living – and EVs are delivering exactly that,” said Thom Drew of Tesla.
“We’re seeing strong customer demand clear out local stock, so we’re ramping up Q2 supply, with more vehicles arriving over the coming weeks.”
Polestar is seeing similar momentum, with its Australian managing director Scott Maynard noting: “There is a clear sense of urgency from customers, which is driving strong order volumes. Interest in Polestar’s electric cars is surging in Australia. Test drive bookings have tripled in the last fortnight, and traffic to our showrooms is what we’d expect to see during a sale event. The vulnerable state of our nation’s fuel security has been exposed, and won’t magically improve when the current crisis ends.”
Broader industry seeing the shift
Other manufacturers are also reporting increased interest as running costs and energy security come into sharper focus.
“We’re seeing steady growth in enquiries and conversion for electric Volkswagen passenger and commercial vehicles, with more businesses exploring how EVs can reduce operating costs in everyday use,” said Nathan Johnson of Volkswagen.
At Hyundai, Chief Operating Officer Gavin Donaldson added: “Hyundai is seeing a clear increase in consumer interest in electric vehicles as Australians respond to rising petrol prices and heightened global fuel market uncertainty. These conditions are accelerating the shift toward EVs, which offer lower running costs, greater energy security and reduced exposure to international supply shocks.”
And for Audi, growing familiarity with EV technology is also playing a role.
“What we’re seeing now is a maturing BEV and PHEV market where customers arrive with a better understanding of the technology, charging and real-world range. That shift in confidence is accelerating demand for our electric and plug-in hybrid models, and we are experiencing momentum for these models online and in showrooms,” said Jeff Mannering.
Policy settings remain critical
Despite the strong growth, the EVC is warning against policy changes that could slow momentum.
“The Electric Car Discount, currently under review, is making EVs more available than ever before. Removing or scaling it back risks depriving Australians of $3,000 a year in savings on fuel and maintenance costs. With the cost-of-living front of mind for every Australian family, those savings couldn’t be more timely,” Delvecchio said.
She added the current surge reflects a broader turning point in the market.
“What we’re seeing is a tipping point. The fuel crisis hasn’t created interest in EVs – it’s accelerated a shift that was already underway. Our website saw almost 100,000 page views in the past month, up 71 per cent, with 97 per cent of visitors new to our site. The most visited page? ‘EVs available in Australia.’ Australians are ready – the industry needs to meet them there.”