Why are Australian consumers choosing hybrids over EVs now?
New data from the Australian Automobile Association (AAA) reveals a significant shift in the country’s automotive market, with more Australian car buyers moving away from electric vehicles (EVs) in favour of hybrid models. According to the latest figures, sales of EVs in Australia plummeted by 25 percent from the second to the third quarter of 2024.
During the same period, hybrid vehicle sales saw a modest increase of 3.3 percent, while plug-in hybrid electric vehicle (PHEV) sales surged by a remarkable 56 percent. This trend reflects a growing preference for vehicles that combine electric power with the reliability of a traditional combustion engine.
Moreover, one of the key factors behind the decline in EV sales is the removal of financial rebates for electric vehicle buyers, which had previously helped to make EVs more affordable. As a result, electric vehicles accounted for just 6.6 percent of the overall car market in the third quarter, down from 8.1 percent in the previous quarter.
This marks the lowest share of the market for EVs in the past two years. In contrast, the overall car market experienced a more modest decline of 7.6 percent during the same period. Funny enough, the drop in EV sales hasn’t led to a return to conventional petrol cars. While petrol vehicle sales also fell by 9.2 percent, there has been a noticeable shift towards hybrid and plug-in hybrid models.
Hybrid vehicle sales increased by 3.3 percent, from 46,727 units in Q2 to 48,282 units in Q3. PHEVs, which offer the flexibility of both electric and gasoline power, experienced an even more impressive growth of 56 percent.
On top of that, the rise in PHEV sales is largely attributed to the long electric driving range offered by modern plug-in hybrids, allowing drivers to cover daily commuting distances entirely on battery power. At the same time, they still have the backup of a petrol engine for longer trips. Financial incentives also play a significant role in this shift.
While rebates for fully electric vehicles have been removed nationwide (except in Western Australia), PHEVs remain exempt from fringe benefits tax until April 2025, providing substantial savings for buyers. The AAA notes that while there have been fluctuations in the market, the trend over recent quarters is clear, and that is, hybrid sales are consistently growing, while the market share of fully electric vehicles has likely peaked for now.
In fact, since mid-2023, hybrids have outsold EVs for five consecutive quarters. This indicates that, for many Australian car buyers, hybrids are becoming the preferred choice for balancing environmental concerns with financial practicality. We got all this from Carscoops and their full article is linked here. Thank you Carscoops for the information and images.
