China Dominates Australia’s EV Market as Sales Surge 24% in 2025

Australia's electric vehicle market is accelerating at a breakneck pace. First-half sales surged 24.4% to 72,758 units, with Chinese manufacturers supplying over three-quarters of all battery-electric vehicles sold. This unprecedented growth pushes EV penetration to 12.1% of new car sales—a milestone that seemed distant just two years ago.

The rapid adoption comes with strategic concerns. Canberra now faces difficult decisions about supply chain dependencies as Chinese brands cement their dominance. While June's record 16% market share demonstrates consumer enthusiasm, EVs still represent just 2% of Australia's total vehicle fleet—highlighting both progress and untapped potential.

Trade tensions loom on the horizon. Policymakers are weighing tariffs and diversification measures, recognizing that today's climate progress may create tomorrow's geopolitical challenges. The charging infrastructure expansion and battery technology improvements driving this boom can't mask the complex calculus of energy transition economics.