Surge in Electric Vehicle Financing Reflects Growing Australian Market

According to the AFIA's latest Electric Vehicle & Hybrid Finance Report, nearly 130,000 Australians made the switch to electric or hybrid vehicles in 2025. This growing trend underscores a clear shift in consumer preferences towards more sustainable modes of transport.

Despite this positive momentum, the transport sector remains a substantial contributor to Australia's overall emissions, accounting for 22% of the total. The continued adoption of electric and hybrid vehicles is seen as a critical component in the nation's efforts to reduce emissions and achieve net-zero targets.

However, potential policy changes, such as the proposed rollback of the Fringe Benefits Tax (FBT) exemption for electric vehicles, could impact this growth trajectory. Polling indicates that more than one in three Australians (37%) would be less likely to purchase an EV if the FBT exemption were removed. Additionally, nearly half of Australians (47%) still anticipate that their next vehicle will be an internal combustion engine (ICE) vehicle.

Industry leaders emphasize the importance of maintaining supportive policies to sustain the current momentum in EV adoption. They advocate for continued incentives and infrastructure development to address consumer concerns and facilitate a smoother transition to cleaner transportation options.

For consumers considering an electric or hybrid vehicle, staying informed about available financing options and potential policy changes is essential. Exploring various loan products and understanding the benefits of EV ownership can aid in making informed decisions aligned with both personal and environmental goals.