EV sales in July: On track for 100,000 in 2024 

Electric vehicle (EV) sales market share slumped to 6.3 per cent in July despite numerous price cuts, as drivers increasingly turn to more familiar hybrid options, but are on track to beat last year’s sales.

Though not quite the January low of 5.4 per cent, flagging EV sales continue to be a theme as 2024 presses onwards after several years of rapid growth from a low base.

In July, 6,743 of the 106,229 cars sold were electric – about 100 vehicles less than a year ago. Tesla accounted for 2,592 of these; down by more than 50 per cent since its March 2024 high of 6,017 vehicles, Tesla EVs accounted for just 38 per cent of the market in July.

The latest Vfacts figures released by the Federal Chambers of Automotive Industries (FCAI) presents a dull outlook for electric vehicles in 2024, which have still failed to break the 10 per cent mark despite several discounts by volume EV brands such as Tesla, MG and BYD.

Regardless, EV sales are up, albeit modestly. While Tesla and Polestar now no longer report sales figures to the FCAI, in total there have been 57,648 EVs sold to date in 2024 compared to 49,938 a year ago, a 15.4 per cent increase on 2023 figures.

Industry body, the Electric Vehicle Council, says that EV sales are still on track to hit 100,000 in 2024 – an encouraging figure given high interest rates are putting pressure on those likely to take out a loan on a new car.

Meanwhile, sales of plug-in hybrids, or PHEVs, which can be driven on all-electric power for up to 80km, and non-pluggable hybrids have both doubled compared to 2023. Put together, electrified hybrid vehicles accounted for 19 per cent of the market in July.

The Tesla Model Y remained the most popular electric car in July despite sales halving from the month before. Ditto, the Tesla Model 3 came in at number two with 1,239 vehicles sold for the month.

After Tesla, BYD holds ground with the Seal electric sedan and Atto 3 compact SUV at numbers three and four, with 570 and 434 sales, respectively. It also sold 226 Dolphin hatchbacks and 556 plug-in hybrid Sealion 6 SUVs. With the introduction of the Sealion 6, less than 70 per cent of its sales are now pure electric.

The MG MG4, meanwhile, lost its fifth-place position to the Volvo EX30. Along with 313 compact EX30s – the brand’s most affordable EV – Volvo sold 419 EVs in total, accounting for 53 per cent of its sales. 

Although EV sales have slowed in 2024, the New Vehicle Efficiency Standard (NVES) will kick in on 1 January 2025.

Under it, the average fleet emissions of new passenger vehicles sold by each carmaker must be reduced to 141 grams of CO2 (or under) per kilometre, and to or under 210 grams CO2/km for light commercial vehicles (including ladder frame SUVs).

This is down from 165gm/km for petrol-powered passenger cars and 230gm/km for petrol-powered SUVs and utes, in 2022.

While the doubling in sales of hybrids and plug-in hybrids will reduce Australia’s transport related emissions, these alone will not be sufficient for carmakers to avoid fines under the NVES.

For example, buying a hybrid medium-sized SUV instead of a petrol-powered medium-sized SUV will only reduce the average emissions from 279gm CO2/km down to 211gm CO2/km on average according to Electric Vehicle Council research based on total lifecycle emissions.

By comparison, a medium-sized all-electric SUV emits an average of just 121gm CO2/km in its lifetime, because it does not need to consume fuel to run. Also, EVs are better for the environment because they uses energy more efficiently whether sourced from the grid or solar.

To meet the stringent NVES targets and contribute to meaningful reductions in transport-related emissions, carmakers will be required from 2025 to make their EV offerings increasingly attractive.