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EV sales hit new record and road user charge back on the table

As Chinese Electric Vehicles continue to flood the Australian market, European automakers are pushing for the 2025 EU emissions targets.

A new glimpse at vehicle sales shows the EV bounce back in 2025 is continuing with them now approaching one in ten new vehicles.

The Australian Automobile Association’s quarterly review show EV sales in the three months to 30 June, lifting sales by 63.37 per cent on the low first quarter 2024  and mean they now make up 9.31 per cent of all new car sales market.

The AAA  says this is a new record and has led to new discussion about the possibility of a road user charge to meet the revenue gap as fuel excise from ICE vehicles falls away.

The Gaurdian has reported the Prime minister Anthony Albanese would like the road user charge to be part of the solutins developed at the productivity commission next week.

Its EV Index analyses both FCAI and Electric Vehicle Council figures and indicates sales have been stronger in the second quarter of 2025 than previously reported.

FCAI monthly sales figures show this bounce continued in July but these figures do not include major OEMs Tesla or Polestar.

The AAA’s quarterly EV Index shows Australians bought 29,244 new battery electric vehicles (BEVs) in the June quarter – up from the 17,901 sales registered in the three months to 31 March.

BEV’s market share climbed from 6.29 at the start of the year  to 9.31 per cent in Q2.

The big story of 2024 and still firmly in the second spot behind ICE vehicles, hybrid sales fell slightly, down 0.6 per cent, with a market share  dropping from 16.52 per cent to 14.87 per cent.

After a boost at the start of the year Plug-in hybrid (PHEV) sales also dropped from 4.82 per cent of the market share at the start of the year to 3.79 per cent market share by June.

The AAA notes in the December 2024 quarter 76.69 per cent of PHEVs sold were medium SUVs but in Q2 2025, BYD’s Shark 6 PHEV 4WD ute entered the market and accounted for 46.95 per cent of total PHEV sales and 9.24 per cent of total 4WD ute sales.

However  the PHEV sales that had been had been growing from a low base since the EV Index was launched in Q1 2023, the June quarter saw PHEV market share drop from 4.82 per cent to 3.79 per cent after the Fringe Benefits Tax exemptions for PHEVs ended on 31 March.

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