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News - Market Insight - Market Insight 2025Market Insight: BEV sales slide, down 21.7pcBEV sales slow as Aussies lose patience with sub-par choice, infrastructure, Musk17 Feb 2025 By MATT BROGAN UPDATED: 18/02/2025
BATTERY electric vehicle (BEV) sales appear to be meeting growing resistance locally, mirroring larger global pushback of a technology many buyers perceive as not offering the range, convenience, value, or resale stability familiar to internal combustion engine (ICE) and hybrid alternatives.
Despite significant competition – and pricing parity with hybrid and ICE models particularly for buyers willing to consider Chinese brands – BEV sales growth slowed in Australia during 2024 with around 91,000 delivered, up 7.2 per cent on 2023 (when BEV sales soared 161.1 per cent over 2022) – and an alarming 21.7 per cent drop in January 2025, to 3832 units for the month.
While advocates of the technology, including the Electric Vehicle Council (EVC), are quick to include plug-in hybrids (PHEV) in sales totals, VFACTS data compiled by the Federal Chamber of Automotive Industries (FCAI) shows BEVs alone are doing less to change the hearts and minds of Australian buyers.
The fortunes of BEV-specific brands well-established in Australia – Polestar and Tesla – for which sales figures are exclusively collated by the EVC, suggest waning consumer sentiment for the technology plus pressure from new BEV entrants and increased interest in PHEVs.
In January 739 Tesla vehicles were sold, down 33.2 per cent year-on-year, and 82 Polestar vehicles, down 45.3 per cent.
Others, however, including BYD, are growing at pace albeit with PHEV models such as the Sealion 6 medium SUV and Shark 6 dual-cab ute looking increasingly like the Chinese brand’s main growth engines.
Australian BYD sales are up 530 units year-on-year to 1993, the ambitious brand climbing overall to 20,458 units (+64.5 per cent) over the past 12 months.
Similarly, luxury German importer BMW reported a growing BEV share in its Australian range with last year’s combined BMW and Mini BEV sales of 8921 units outstripping those of Chinese-owned British brand MG Motor.
Yet despite glimmers of optimism, it is apparent some BEV manufacturers have moved too fast, too soon.
In the past fortnight alone, GoAuto has reported on a change in tack from Ford, Alfa Romeo, and Smart – all of which have announced a retreat from the move to go fully electric in favour of hybridised drive.
Ultra-luxury brands Aston Martin and Bentley have also recently backtracked on their proposed switch to BEV-only line-ups.
GoAuto has also reported on the failure of BEV start-up Canoo – which now joins other short-lived manufacturers including Arrival, Faraday Future, Fisker and Lordstown Motors in being consigned to the annals history.
Even former BEV golden child Tesla posted a shaky finish to 2024, with final quarter income down a whopping 71 per cent to $US2.3 billion ($A3.7b).
Further, industry-wide job losses are being observed across the automotive components sector as European heavyweights including Bosch front economic hardship from over-investment in a technology facing slower-than-expected sales.
Without significant government incentivisation, the estimated 248,000 battery electric vehicles on Australian roads will face an even tougher road ahead, as noted by Electric Vehicle Council chief executive officer Julie Delvecchio.
“There’s still much more work to be done to drive wider EV adoption – but Australia is heading in the right direction,” she said.
“To boost momentum, we need to build on the current FBT policies, support more charging infrastructure and focus on light commercial vehicles to make it even easier for more Australians to transition to cleaner, cost-effective driving.”
Australian five-year battery electric vehicle sales tally^:
*YTD figures to January 31, BEV share in Jan 2024 was 5.45%.
^Data supplied courtesy of EVC and FCAI.  Read more4th of February 2025  Market Insight: 2023 vs 2024 best sellersHow much did Australia’s new-vehicle sales landscape change over the past 12 months?27th of January 2025  Market Insight: Car price stability returnsAverage new-vehicle prices climbed slightly in 2024 as supply-and-demand stabilised |
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