More subsidies thrown at stalling EV market

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The federal government has set a target of 50% of all car sales being electric by 2030, whereas AEMO assumes near total electrification of the vehicle fleet by the 2040s.

Current sales trends are underwhelming.

The chart below shows that battery electric vehicle (BEV) sales (green line below) failed to launch in 2025, with only 103,355 BEVs sold in the calendar year, comprising only 8.6% of total vehicle sales:

EV sales in 2025

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.