Australian drivers’ intentions to purchase an electric vehicle (EV) have remained unchanged over three years despite new brands entering the market at lower price points and government incentives designed to accelerate uptake.
The Australian Automotive Dealer Association (AADA) has found that 38% of drivers would consider an EV for their next main vehicle, identical to the figure recorded in September 2022.
The finding comes from the AADA’s fourth annual survey of 2000 Australian drivers, conducted in November 2025 to help new car dealers understand changing consumer demand.
“Our members are committed to supporting Australia’s transition to lower-emissions vehicles and want to meet Australian driver’s needs,” AADA chief executive James Voortman said. “However new car dealers are not yet seeing a significant increase in the number of consumers intending to purchase an EV at the scale required.”
Regional decline emerges
The survey identified a concerning trend for EV adoption, with a national decline in purchase intentions across regional and rural Australia.
This finding supports direct evidence from new car dealers about the reluctance of regional drivers to make the transition to electric vehicles, highlighting a growing divide between metropolitan and regional EV adoption rates.
The stagnant intentions present a challenge for government emissions targets. In 2025, the Climate Change Authority released modelling showing that Australia would need 50% of all new car sales to be electric every year to 2035 to meet emissions targets.
“Based upon the results from the fourth edition of this survey, this will be challenging,” Voortman said.
Hybrid interest grows
Despite flat EV intentions, the survey revealed positive indicators for electrified vehicles more broadly, with consumers showing increased interest in hybrid and plug-in hybrid electric vehicles (PHEVs).
This trend aligns with recent sales data showing strong growth in hybrid vehicle purchases across the Australian market.
The research also found that economic pressures are influencing EV consideration, with consumers now willing to pay only a 2% price premium for an EV compared to 6% in November 2024.
“What we are seeing is the automotive transition is happening but at the pace of the consumers choosing,” Voortman said.
The AADA has conducted the annual survey since 2022 to track Australian drivers’ attitudes toward electric and hybrid vehicles, providing dealers with insights into evolving consumer preferences in the rapidly changing automotive landscape.
The full report is available at https://www.aada.asn.au/wp-content/uploads/2026/01/202511-EV-Hybrid-Vehicle-Wave-4-websitecopy.pdf
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