Electric utes surge as Australian EV sales jump 38%

Australian electric vehicle sales rose sharply in 2025, with buyers gravitating towards medium SUVs and a rapid shift in the ute market, according to new consumer analysis from charging provider JET Charge.

The EV market grew 38% from 2024 to 156,958 sales in 2025, driven by wider model availability and lower prices across several high-volume models, JET Charge said.

Medium SUVs

Medium SUVs took the largest share of EV sales in 2025. EV penetration in the segment rose to 27% from 16% a year earlier, reflecting a broader range of vehicles and a smaller price gap between electric and non-electric models, according to JET Charge.

Model choice increased to 45 vehicles in 2025 from 30 in 2024, while the EV price premium was estimated at 18% to 22%.

JET Charge described the segment as a leading indicator for wider adoption and expects medium SUVs to remain the main driver of EV volumes in 2026, citing continued competition among manufacturers and narrowing prices.

"This is both the biggest story of the EV market right now and where the rest of the EV market needs to get to - a highly competitive market of EV options with an increasingly narrow price gap to non-EV alternatives," said Kristian Handberg, Head of Future Business at JET Charge.

Ute shift

Utes moved rapidly from a niche to the second-largest EV segment in 2025, based on JET Charge's figures. Electric ute sales rose from 362 in 2024 to 20,622 in 2025.

Electric utes accounted for about 8% of the overall ute segment in 2025. JET Charge said the BYD Shark was the key driver, ranking as the fourth highest-selling ute overall with a 7% market share.

The surge comes as carmakers expand into categories traditionally dominated by petrol and diesel models. Ute demand also intersects with fleet purchasing, where total ownership costs and downtime influence buying decisions.

Small SUVs

Small SUVs held their market share from 2024 to 2025, with growth in line with the broader segment, JET Charge said. Price remains the main barrier to EV adoption in this category.

The EV price premium for small SUVs was estimated at 40% to 45%. JET Charge also said the segment attracts fewer novated leasing customers, limiting the impact of the Fringe Benefits Tax exemption.

Passenger cars

Small passenger EVs fell in 2025, despite broader market growth. JET Charge linked the decline to increased price sensitivity in a tougher economic climate and a shift towards buyers weighing costs over several years.

Medium passenger EVs also declined, which JET Charge attributed mainly to reduced appeal for the Tesla Model 3 during 2025. The model benefited from a refresh in 2024, but demand softened as preferences changed.

Economics focus

The financial case for EVs has strengthened across several vehicle types when measured over the full ownership period. Many passenger vehicles, SUVs, and light commercial utes and vans now reach cost parity with internal combustion engine vehicles on a whole-of-life basis, JET Charge said.

Several high-volume EV models have dropped in price by 20% to 40% since 2022, and in some cases the purchase price has fallen below $30,000 drive-away. JET Charge cited the BYD Atto 1, priced at $23,990 plus on-roads, or about AUD $27,000 drive-away, and said it is comparable with models such as the Toyota Yaris, Mazda 2 and Suzuki Swift.

Lower running costs remain central to the EV proposition, with savings in fuel, maintenance and servicing that reflect fewer moving parts in electric drivetrains. JET Charge also expects stronger EV uptake in fleets as businesses weigh running costs alongside emissions goals.

"It's time for the EV market to go mainstream and the next twelve months will set the pace for the transition. With electric options for everyone and the purchase price gap decreasing, the whole-of-life cost argument should make the choice easy for any driver, and most importantly, for fleet managers," Handberg said.

2026 outlook

JET Charge cited the Australian Energy Market Operator's most conservative "Slower Growth" scenario, which indicates EV sales of around 240,000 vehicles in 2026. It contrasted that with its own projections, which vary depending on whether the Fringe Benefits Tax exemption remains in place.

With the exemption, JET Charge forecast about 195,000 new EV sales in 2026 and a 15% overall market share. Without it, the forecast was about 167,000 sales and a 13% market share.

JET Charge expects two developments to shape the next phase of adoption: a rapid rise in public charging installations in metropolitan areas and along highways as property owners assess commercial returns, and more fleet electrification as managers compare total cost of ownership across vehicle classes.