Cost-of-living pressures are reshaping rather than dampening electric vehicle (EV) demand in Australia, with rising fuel costs prompting more buyers to seriously consider the long-term economics of going electric.
The latest carsales Consumer Sentiment Survey found consumer confidence has hit its lowest point in over a decade – lower even than during COVID – with price now the most important factor for car buyers overall. Yet at the same time, the carsales EV Consumer Survey shows EV consideration has climbed to 54%, up sharply from 36% in November 2025.
Ross Booth, carsales Data Services Director, said the findings reveal a counter-intuitive trend. “What we’re seeing is cost-of-living pressure actually accelerating EV interest rather than holding it back. Rising petrol prices are prompting more buyers to seriously weigh up the long-term economics of going electric – and for many, the numbers are starting to stack up,” Booth said.
The data suggests petrol prices are a key catalyst, with 37% of buyers saying recent fuel costs have made them more likely to consider an EV. Among existing EV owners, being cheaper to run than a petrol car is now the leading benefit that influenced their purchase, cited by 68% of respondents.
The barriers to EV purchase are also evolving. Price is no longer the top concern, with lack of charging stations now the leading barrier at 44%, overtaking price concerns at 40%. Battery safety concerns have continued to ease, with 31% of respondents now expressing high concern around the risk of battery fires in EVs, down from 44% in late 2024.
“The conversation has shifted,” Booth said. “A year ago, price and value dominated the hesitation. But with more affordable models now in market, that barrier is starting to come down – and buyers are moving on to the next set of questions: where can I charge, how far can I go, and how long will the battery last?”
Strong outlook tempered by battery concerns
EVs are now the vehicle type Australians are most likely to be driving by 2035, with 35% of respondents selecting electric vehicles, overtaking both petrol and hybrids at 22% each.
While more EV intenders are now open to buying both new and used EVs, with 52% considering the used market, battery replacement concerns are narrowing demand to near-new vehicles. Some 63% of potential used EV buyers won’t consider one older than three years.
The biggest uncertainty around EV purchase remains the cost of replacing the battery, cited by 53% of respondents, suggesting battery concerns are a key factor limiting used EV demand to newer models.
The surveys were conducted by carsales, with the EV Consumer Survey polling 1521 respondents in May 2026 and the Consumer Sentiment Survey covering 2127 respondents in April 2026.
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