Despite Tesla Dip, Australia Over 14% Plugin Penetration

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Last Updated on: 5th April 2025, 02:15 am

Combining the numbers for plugin electric vehicles (PHEV plus BEV) gives Australia a penetration rate of 14.5% for March, a significant increase over last month. New Zealand numbers have been stuck at 7.3 %. That’s a long way down from the highs of 2023 when EVs comprised almost 25% of the New Zealand (NZ) market, but stable against the 2024 average (7.3%).

My NZ correspondent muses: “I think there’s a very complex set of reasons around the static EV share — and quite hard to unravel. There’s no doubt that economics are playing a major role — a quick scan over general vehicle sales show some of the most popular new cars are low-cost petrol cars — and BEVs are more expensive by some margin. Every month, some of the strong EV numbers come from 1 or 2 nameplates that have big discounts.” Thanks, James — you can dig into the details further here.

The best-selling BEVs in March in NZ were:

1. Tesla Model 3 — 79
2. Polestar 2 — 77
3. Tesla Model Y — 66
4. BYD Dolphin — 48
5. Kia EV 5 — 31
6. Kia EV 3 — 29
7. Atto 3 — 21
8. EV 6 — 18
9. BMW iX1 — 17
10. MG ZS EV — 15
11. Toyota BZ4X — 14

The Tesla Model 3 is still selling well, despite competition from newcomers like the Xpeng G6.

I had to go to 11 because I wanted to include Toyota — still hanging on by its toenails, until it can produce a better car. Yes, I know it is promised. 594 BEVs were sold into the NZ market in March 2025.

What about the PHEV market? Out of the 226 units sold, these are the top ten:

1. MG HS — 42
2. BYD Sea Lion 6 — 30
3. Great Wall Motors Haval H6 — 23
4. Kia Niro — 22
5. Mitsubishi Outlander — 22 (an extra 35 used vehicles were imported)
6. Mitsubishi Eclipse Cross — 16
7. Mazda CX 80 — 15
8. Lexus NX — 14
9. Audi Q5 — 11
10. BMW X1 — 8

NZ data lists utes separately. It reveals that, just like in Australia, the BYD Shark is certainly taking a bite out of the market, with 169 units sold. For those not familiar with the Shark 6, it is an extended-range electric vehicle, a plug-in hybrid with a reasonable size battery giving 80–100 km of all-electric range. The petrol motor works as a generator.

At the end of the first quarter of 2025, the Polestar 2 is the top seller. BYD and Tesla are equally the top brands in New Zealand. The stats above focus on new cars, but it’s worth noting that the imported, used Nissan Leaf from Japan is the most registered EV in New Zealand.

As I write, Electricana NZ is running a display of electric vehicles in Taupo, featuring the Tesla Cybertruck. Check it out here. The Geely EX 5 has just launched in New Zealand and should do well, judging by its reception from the Australian car-buying public. Also note that the Kia EV3 is about to launch and is already a global sales success.

Earlier today, Dr Maximilian Holland lamented that although market leaders like China and Norway are following the technology adoption curve, countries with large vested interest are not.

He wrote: “We know that the EV transition is still mostly being driven by regulatory sticks in the overall European market. The region’s legacy automakers (recently caught in a cartel scheme along with their lobbying organisations) are not on board with transitioning to electric (unlike in China). Their profits come from rent-seeking (and barriers to entry) from their past ICE investments. The nexus of industry and politicians also appears (to me at least) to be colluding to keep out genuine competition.” This may be true in Europe, but it does not explain the slow growth in the Australian market and the stability of the New Zealand one. We have no homegrown auto industry. Though, we do have the vested interests of the ICE manufacturer importers.

In Australia, 8,385 full electric vehicles (BEVs) were sold in March, after a slow January and February. This is 7.5% of the new car market total of 111,617. This data is incomplete, as we are seeing Xpeng G6 models in the wild even though sales are listed at zero in the database. Two of them have even been driven to our monthly coffee morning, their drivers enthusiastically showing off their new toys! So, the total numbers of BEVs sold must be even higher.

Australia’s BEV sales over the first three months of 2025 are down about 30% on Q1 2024 numbers. Most of the downturn can be attributed to a sharp fall in Tesla deliveries. However, March saw an improvement in numbers. Another anomaly skewing plugin sales numbers, Australia’s fringe benefits tax (FBT) exemption for PHEVs has now ended. Next month, the PHEV numbers might not be so robust. In March, the BYD Sealion 6 and Shark 6 (both PHEVs) accounted for 3,600 vehicles out of the 6,932 PHEVs sold.

The best-selling BEVs in Australia in March were:

1. Tesla Model Y — 1,725 (year to date — 3,114)
2. Tesla Model 3 — 1,104 (2,046)
3. BYD Sealion 7 — 573 (730)
4. Kia EV5 — 478 (1,167)
5. MG4 — 444 (1,335)
6. BYD Atto 3 — 358 (601)
7. Mecedes Benz EQE — 219 (350)
8. BYD Seal — 194 (302)
9. Geely EX5 — 188 (first month)
10. Kia EV3 — 186 (first month)

The Dolphin is down at number 17 (215 units sold); the Toyota BZ4X at number 19 (210 units sold); the Zeekr X has been on the market in Australia for two months and has sold 179 cars (still can’t find one in Brisbane). The Leapmotor C10 is slowly growing in numbers — 138 sold in the first quarter. More data is here.

Tesla numbers are expected to improve in May and June when the refreshed Y is delivered.

The debutantes to the EV market did well. Consider the BYD Sealion 7. Some are asking: can it catch the Tesla Model Y? The Kia EV3 was only on sale in the last week of the month and came in 10th. In its first month, the Geely EX5 also made it into the top ten. (We got a look at the very competitively priced Geely before its official launch.)

We now have 89 BEV models available in Australia. It’s hard to keep up. We are visiting the newly released Changan Deepal BEV on Wednesday — stay tuned for a sneak peek. Headlines used to say there wasn’t enough choice. Now they are declaring there are too many new brands.

News flash: I just got an email from Brisbane’s Deepal dealer announcing the Deepal EO7 — this vehicle will surely be a game changer. It has been described by a video reviewer as a transformer ute with “snot” and “grunt.” Watch the video here:

So, why the slow uptake of EVs in some countries, particularly those that do not have a domestic auto industry to protect? I think a lot of it boils down to perceived risk. We are hardwired to avoid risk — fear keeps us safe. Years of misinformation have deepened many people’s suspicions of electric cars (didn’t work with mobile phones, though). Changing government support has made people insecure (if it has to be subsidised, it can’t be any good). Even the rapidly improving tech has made people nervous (I’ll wait for the better/cheaper version next year).

The strange and unknown names make buyers fearful that there will not be ongoing dealer support. For some, the change is just too great. Perhaps that is why there is such a proliferation of EV Facebook pages whenever a new car is launched — there is safety in numbers. There is a good analysis on these matters here.

Some personal anecdotes: Each Monday, we go to the local supermarket for our weekly grocery shop. I have taken to doing a quick reconnoitre to see how many and which EVs are parked there. I call it the Aldi Shopping Car Park Test. There are more every month. Watching TV the other night, I was surprised by the juxtaposition of two advertisements. The first ad was for Hyundai and featured petrol cars. The second one was for an electricity provider. The star of the second ad: a Hyundai IONIQ 5. Perhaps carmakers would sell more EVs if they actually tried to sell them!

Electric Vehicle Council CEO Julie Delvecchio said: “Electric vehicle sales in Australia are going from strength to strength, with sales in 2025 already surpassing figures from this time last year, both in total numbers and as a proportion of overall sales.” She described it as a “watershed” moment. Driving electric would certainly help those who are struggling with the cost of petrol. As ever, the future looks bright, and electric.