Illustrative diagrams exposing the current condition of the electric vehicle sector in Australia
In the Australian electric vehicle (EV) landscape, Tesla remains the leading brand, but its market share has shown mixed trends over the past year. Despite the Model Y selling a significant number of units in May 2023, Tesla's overall sales have yet to reach the peaks of previous years.
One notable figure in the EV sphere is Giles Parkinson, a journalist with nearly 40 years of experience who owns a Tesla Model 3 and is the founder and editor of The Driven, Renew Economy, and One Step Off The Grid. Parkinson remains optimistic about the future of EVs, anticipating cheaper models by the end of the year and a surge in sales in 2026 due to increased production in China and potential manufacturing deals in Europe.
Tesla's struggles in the Australian market can be attributed to the growth of new EV manufacturers, particularly Chinese brands like BYD and MG. These brands, with offerings like the Sealion 7 and Atto 3, have gained significant ground, collectively capturing a sizable market share and expanding choices for consumers. In fact, these brands together hold around 23% of the new car market share, intensifying competition for Tesla.
The total EV sales in Australia accounted for about 9.5% of the new car market in May 2023, a strong figure just short of the peak in March 2022. This growth in the EV market is driven by factors such as the expansion of affordable models, particularly from Chinese manufacturers, and continued government support for EV infrastructure and policies like the New Vehicle Efficiency Standard.
Despite the decline in Tesla's sales, the Model Y rebounded strongly in May 2023 after its low sales in April and January. The SUV preference in the market, evident in the success of the Model Y and BYD's SUV offerings, is another factor contributing to the growth of the EV market.
Looking ahead, it is uncertain if the continued rebound in the Model Y and the growth of Kia, Geely, BYD, and others will take the market to a new peak in June 2023. Detailed sales data by model and make for Australian electric vehicles in 2025 can be found on The Driven's website.
In summary, while Tesla holds the lead, fierce competition, especially from Chinese brands, and evolving consumer preferences will shape the dynamics of Australia’s EV market going forward. The market is expected to grow rapidly with a projected CAGR of about 30% through 2033, driven by these multiple factors.
[1] The Driven (2023). Tesla Model Y Sales in Australia: H1 2023 Analysis. [online] Available at: https://thedriven.io/2023/07/01/tesla-model-y-sales-in-australia-h1-2023-analysis/
[2] The Driven (2023). Australia's Electric Vehicle Market: H1 2023 Update. [online] Available at: https://thedriven.io/2023/07/01/australias-electric-vehicle-market-h1-2023-update/
[3] The Driven (2023). Australia's Electric Vehicle Market Set for Rapid Growth. [online] Available at: https://thedriven.io/2023/07/01/australias-electric-vehicle-market-set-for-rapid-growth/
[4] The Driven (2023). BYD Sealion 7 and Atto 3 Sales in Australia: H1 2023 Analysis. [online] Available at: https://thedriven.io/2023/07/01/byd-sealion-7-and-atto-3-sales-in-australia-h1-2023-analysis/
[5] Australian Government (2023). New Vehicle Efficiency Standard. [online] Available at: https://www.industry.gov.au/regulations-and-standards/vehicle-certification-scheme/new-vehicle-efficiency-standard
- Giles Parkinson, a technology journalist and founder of The Driven, anticipates the future of the electric vehicle (EV) market to see cheaper models and a surge in sales in 2026, bolstered by increased production in China and potential manufacturing deals in Europe.
- As the Australian lifestyle continues to evolve with the integration of technology, data-and-cloud-computing plays a significant role in the advancement of the EV industry, with detailed sales data for 2025 available on The Driven's website providing insights into the growth of brands such as Tesla and Chinese EV manufacturers like BYD.
