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Driving towards greener roads with electric cars

As EV sales continue to increase, petrol cars are still the more popular choice. What could it take for EVs to take the lead in new car sales in Australia?

In 2021, just 1.6% of cars sold in Australia were electric. ​But since then, numbers have continued to grow. At the end of 2024, EVs made up 9.65% of new car sales locally. 

A 2024 Australian Automotive Dealer Association (AADA) survey revealed that ​​39% of respondents would consider an EV for their next vehicle. And there are plenty of reasons why driving an EV is a smart choice for the future.​ 

Why EVs are a great choice

Electric cars boast a range of benefits for Aussies. This includes costing less to run and maintain, and offering a more comfortable ride. There are also options to save even more when charging, like using solar energy or charging at night with our Night Saver EV plan. When coupled with the decarbonisation of the electricity grid, EVs can help reduce emissions in the transport sector and support Australia’s economy-wide net zero targets in the Paris Agreement.  

Affordability and choice

Buying a new car is a considerable purchase, whether it’s an EV or petrol car. But when it comes to affordability and choice, EVs are more competitive than ever. 

The NSW Government estimates the average driver will save $1000 in running costs per year by switching to an EV. This includes saving money on servicing and fuel. And potentially even more if you use solar energy to charge your car at home. The electric cars exemption also makes it more affordable for business owners to add EVs to their fleets, by removing fringe benefits tax (FBT) on these types of vehicles. This is also expected to push more EVs into the more affordable second-hand market as early adopters and commercial fleets upgrade their cars.

​​​​​​ ​And in terms of choice, ​more models have become available ​over the last 5 years. We’re also getting closer to price parity with​ petrol cars, with EVs ​available ​from $29,990 drive-away. ​There are at least 10 on the market for under $50,000 including on-road costs.​ 

If the initial outlay is still a barrier, our EV subscription service (available in Sydney, Melbourne, and Brisbane) is a great option. It gives drivers the chance to experience life behind the wheel of an EV without the commitment of owning one.  AGL also launched an EV Energy plan which won a ​​Canstar Blue Innovation Award in 2020, to help support your electric mobility. Additionally, commercial and home charging solutions are available.

Range anxiety

Some non-EV drivers are still concerned about ​running out of charge. This is known as ”range anxiety” – the fear of your EV battery going dead and having nowhere to charge it. ​​But a chat with any EV driver would ease their fears.​

​​​Both federal and many state governments have made a significant commitment to alleviate range anxiety for more motorists, even those travelling large distances between major cities. The National Electric Vehicle Strategy and The Driving the Nation Fund were developed to enable Australia's shift to electric vehicles (EVs) in several ways, including improving public charging infrastructure. The intent is to have a fast charger approximately every 150km on national highways. ​​     ​​​​​​​     ​

In the meantime, the distance an EV can travel before requiring a recharge is increasing, with vehicles averaging 378km and many exceeding 500km – more than enough for daily commuting for most people. ​     ​

Why national policy is key

In the early days of solar power, it was more expensive. But the Australian Government policy helped make it more affordable. If we want to see an increased uptake in EVs, policies must support this. 

We advocated for a national EV roadmap to establish targets and support initiatives, including the development of infrastructure (such as charging stations). ​It’s great our customers, and all Australians are seeing the benefits.​

What’s on the horizon?

​​With the barriers preventing consumers from owning an EV being steadily overcome, the future is looking bright for Australian drivers. ​​As one of the first Australian ​signatories of the EV100, ​which includes making ​our fleets across corporate and generation sites electric by 2030​, we are proud of the part we’re playing in the future of electric vehicles.​​ We’re here to help you join the change.​

Interested in an EV?

Learn more about AGL's EV plans.

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