Electric vehicle (BEV) sales in Australia grew modestly by 4.67% in 2024, reaching 91,292 units compared to 87,215 in 2023. While this fell short of the highly anticipated 100,000-unit milestone, the year provided critical insights for fleet managers planning a transition to electrification over the next 5-10 years.
Key EV Sales Data
Tesla remained the market leader despite a 16.85% drop in volume, attributed partly to its exit from the Federal Automotive Council of Australia (FACI) mid-year. Meanwhile, BYD filled the gap with a remarkable 64.5% increase in sales, adding 8,020 vehicles. Models like the Seal (up by 5,922 units) and the new Sealion PHEV (6,198 units) were instrumental in BYD’s success, even as the Atto 3 saw a nearly 50% decline in sales.
Plug-in hybrid electric vehicles (PHEVs) were a standout category, recording a 100.2% increase in sales to 23,163 units. This growth was driven entirely by the Federal Government’s Fringe Benefits Tax (FBT) exemption, which has made PHEVs a financially attractive option for fleets and individuals alike.
Other notable contributions to the EV landscape included:
- Subaru Solterra and Toyota bZX4: Both electric SUVs, with the bZX4 leading with 977 sales compared to the Solterra’s 386 units.
- Volvo EX30: Captured 2,129 sales during its 2024 launch.
- Renault Megane E-Tech: Surprised with 266 units sold.
- Ford Mustang Mach-E: Completed its first full year with 673 units delivered.
- Kia EV9: Delivered 568 units, appealing to those seeking a seven-seat electric vehicle.
Delays and Opportunities: Kia EV5
The launch of the Kia EV5 in 2024 faced significant delays, resulting in just 608 units delivered by year’s end. However, this model is poised to become a fleet favourite in 2025. With sharp pricing, strong relationships with fleet buyers, and supply expected to improve, the EV5 is positioned to make a substantial impact. Its blend of practicality, competitive pricing, and reliability makes it an ideal addition to fleet operations.
Hybrid Vehicles Continue to Grow
Toyota’s increased supply of hybrid vehicles contributed significantly to market growth. While hybrids are not EVs, they remain a viable solution for fleets seeking to reduce emissions immediately while preparing for a full EV transition.
Implications for Fleet Managers
The modest but meaningful growth in EV and PHEV sales, coupled with Toyota’s hybrid supply, offers important lessons for fleet managers:
- Seize Opportunities with PHEVs: The government’s FBT exemption has proven pivotal in driving adoption, making PHEVs a practical bridge for fleets transitioning to full electrification. Vehicles need to be delivered before 31st March 2025.
- Prepare for the Kia EV5: Its anticipated success in 2025 highlights the importance of aligning fleet strategies with emerging models that offer a compelling mix of value and performance.
- Leverage Hybrid Supply: Toyota’s hybrid dominance offers immediate options for fleets seeking to improve sustainability metrics while waiting for EV supply constraints to ease.
Preparing for 2025 and Beyond
The trends of 2024 highlight the growing importance of EVs and PHEVs in the Australian automotive market. Fleet managers should monitor emerging models like the Kia EV5 while capitalising on government incentives to reduce costs and accelerate the transition to electrification. By acting strategically, fleets can achieve sustainability goals and operational efficiency in an evolving automotive landscape.
