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Electric Vehicle Financing Sees 48% Year-on-Year Growth in Australia

EVs Defy Broader Market Decline Amid Rising Fuel Prices

Electric Vehicle Financing Sees 48% Year-on-Year Growth in Australia?w=400

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Recent data from the Australian Finance Industry Association (AFIA) reveals a significant 48% year-on-year increase in electric vehicle (EV) financing as of February 2026.
This surge comes despite a nearly 3% decline in the overall motor finance market, highlighting a growing consumer shift towards EVs.

AFIA CEO Diane Tate attributes this trend to the effectiveness of the Fringe Benefits Tax (FBT) exemption for EVs, coupled with escalating fuel prices and supply chain dynamics. These factors are driving more Australians to consider EVs as a viable and economical transportation option.

However, EVs currently account for only 16% of all vehicles financed in Australia over the past year. With transport emissions comprising 22% of the nation's total emissions, there remains substantial room for growth in EV adoption to meet environmental targets.

Conversely, hybrid vehicle financing has declined by 42% in February 2026 compared to the same period in 2025. This downturn follows the removal of the FBT exemption for plug-in hybrid vehicles in March 2025, suggesting that government incentives play a crucial role in consumer adoption rates.

For Australian consumers, particularly those considering motorcycle purchases, these trends underscore the importance of staying informed about available incentives and financing options. Exploring EV models and understanding the associated benefits can lead to more sustainable and cost-effective transportation choices.

Published:Tuesday, 19th May 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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