Growing Demand for Hybrid and Electric Vehicles in Australia: Study Reveals Nearly Half of Australians Prefer Clean Cars

The Growing Popularity of Electric Vehicles and Hybrids in Australia

The demand for electric vehicles (EVs) and hybrids is on the rise in Australia, with both sales figures and a recent study indicating a significant increase in interest.

According to mycar’s 2026 Mobility Index, 46% of Australian vehicle owners are considering purchasing an EV or hybrid for their next vehicle, up from 36% in 2025.

The study, conducted by Lonergan Research in April 2026, surveyed 2025 vehicle owners over the age of 18 in Australia.

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Following a surge in fuel prices in Australia, the government temporarily reduced the fuel excise, leading to a significant increase in EV sales the following month, capturing 19.9% of the new-vehicle market.

Despite a subsequent decrease in fuel prices and the partial removal of the fuel excise reduction, the study identified several barriers to EV adoption.

Concerns among combustion-powered vehicle owners around EVs and hybrids include reliability, running costs, and vehicle performance.

However, the study found that 86% of EV and hybrid owners are satisfied with their ownership experience, highlighting the benefits of making the switch.

While new brands, particularly Chinese manufacturers, have entered the Australian market with more affordable hybrid and EV options, some vehicle owners remain hesitant due to concerns about safety and reliability.

In recent years, brands like Deepal, Leapmotor, Xpeng, and Omoda Jaecoo have made their mark in the Australian market, offering diverse electric vehicle choices.

The introduction of Forthing by distributor Ateco Automotive in 2026 brings the promise of the most affordable mid-size electric SUV to the Australian market.