Battery electric vehicle (BEV) sales in Australia exceeded 100,000 units for the first time in 2025, reaching 103,269 deliveries according to data from the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council (EVC). 

This represents a 13.1% increase from the total of 91,495 BEV sales in 2024, with EVs now accounting for 8.3% of all new vehicle deliveries, compared to 7.4% in the previous year.

According to the EVC, the annual results bring Australia’s total EV fleet to more than 454,000 vehicles.

Data from the FCAI revealed that Australia’s new vehicle market demonstrated resilience throughout 2025, with total sales reaching 1,209,808 units. 

FCAI chief executive Tony Weber noted that consumers are responding to a wider range of EV models that meet diverse transportation needs, from family transport to business applications.

December 2025 proved particularly strong for EV adoption, with monthly sales reaching 10,384 units, representing 10.2% of the total market, up from 9.1% in November. 

China’s BYD led December sales with 4,113 deliveries, temporarily displacing Tesla from the top position. Tesla recorded 2,585 sales during the same period, contributing to the year-end surge that pushed annual totals beyond the 100,000 threshold.

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This aligns with the broader Tesla vs BYD EV sales race taking place worldwide – one that the Chinese automaker is currently leading

In 2025, Tesla sold 1.64 million EVs, posting its second year of lower deliveries. This announcement was made the day after BYD announced that its battery electric car sales increased in 2025 to surpass 2.25 million.

Tesla’s historical dominance came from early market entry in Western regions, particularly in the US, where BYD cannot ship its vehicles due to trade restrictions. However, as BYD has increased its presence in car markets outside of China, Tesla’s performance has declined.

This can be witnessed in data from New AutoMotive, which showed that in the UK, in November, BYD’s year-to-date registrations had increased by 251.7% compared to the previous year, while Tesla’s registrations dropped by just under 5%. BYD’s UK market share increased by 3.74% compared to the previous year, while Tesla’s dropped by 2.9%. 

Back in Australia, Tesla Model Y dominated individual model sales in 2025 with 22,239 deliveries, followed by BYD Sealion 7 with 13,410 units. The diversity of available models expanded significantly, with manufacturers offering electric variants across multiple vehicle categories, including passenger cars, SUVs, and commercial vehicles. 

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The infrastructure development supporting this growth extends beyond traditional charging networks. Australian EVs are preparing to unleash a 100kWh battery storage army through vehicle-to-grid (V2G) technology, with EV batteries demonstrating storage capacities ranging from 16kWh to over 100kWh – larger than the traditional sizes of home battery storage units.

This capability positions EVs as distributed energy resources that can support grid stability and renewable energy integration.

As previously reported by EV Infrastructure News, V2G participation remains limited currently, with approximately 10 EV owners participating in V2G services as of February 2025; however, this number does not include various pilot programmes and trials being conducted at the time of writing. 

However, the Australian Energy Regulator’s Export Services Network Performance Report 2025 indicates that EV adoption patterns and bidirectional charging capabilities could significantly reshape the country’s energy storage landscape within the National Electricity Market (NEM).

Commercial fleet adoption contributed to sales growth, as businesses increasingly incorporated EVs into their operations. 

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For example, Amazon, logistics companies, and government fleets expanded their EV deployments throughout 2025, driven by operational cost advantages and sustainability commitments.

Plug-in hybrid EV (PHEV) sales also demonstrated strong growth, with 53,502 units delivered in 2025, representing a 134.5% increase from the previous year. Combined electrified vehicle sales, including both BEVs and PHEVs, totalled 156,857 units, capturing 13.1% of the total market compared to 9.5% in 2024.

The sales milestone coincides with expanding infrastructure investments that support the growing EV fleet. 

The Australian Renewable Energy Agency (ARENA) recently invested AU$21 million in EV infrastructure projects through its Driving the Nation Fund, targeting ultra-fast charging networks, kerbside charging solutions, and V2G integration capabilities.