NRMA Insurance reveals key to EV uptake

High cost is another barrier, with only a handful of models under $40,000 and a limited second-hand market making EVs less accessible for budget-conscious buyers. Despite the higher initial purchase price, many consumers are unaware that lower running and maintenance costs make EVs more cost-effective over their lifetime. An average car driving 13,700 kilometres per year could save $1000 annually in fuel, or $1200 with overnight off-peak charging. As battery technology improves and production scales, upfront costs are expected to decrease, making EVs more competitive.

Australia’s EV future: leading the charge

The report also illustrates the rapid growth of EVs in Australia and predicts that future expansion will likely be driven by younger drivers. EVs, which made up less than 1 per cent of new-car sales in 2020, have consistently increased their market share annually, reaching 8 per cent of light-vehicle sales in 2024.

Unsurprisingly, the surge in EV adoption is most pronounced among drivers with household incomes of over $200,000, families with children and residents of capital cities, with many citing lower running costs and sustainability as key reasons for their purchase.

“To capitalise on this momentum, we need policies and incentives to support the second-hand EV market, which will help make these vehicles more accessible, especially among some buyers who may be deterred by the upfront cost of a new EV,” says Batch of the growth figures.

View the Changing Gears report and its recommendations on the NRMA Insurance website.