Number of EVs Financed in Six-Month Period Triples: A Groundbreaking Shift in Australia's Automotive Landscape

14 September 2023

The Australian Finance Industry Association (AFIA) has today released its report, EV Finance: Driving Down Australia’s Emissions, revealing its members have nearly tripled the number of electric vehicles (EVs) financed each month between January and June 2023.

This significant surge translates to approximately 4,000 zero-emission EVs financed monthly in June 2023 compared with 1,400 in January 2023, a staggering milestone that represents over a quarter of a billion dollars ($250 million) in financial support for sustainable transportation.

These findings underscore the unprecedented growth of Australia's EV sector, they represent a crucial step towards reducing the country's transport emissions, a major contributor to its overall carbon footprint.

"The exponential rise in EV financing demonstrates a paradigm shift in our automotive industry,” said AFIA CEO Diane Tate.

“It signifies the increasing awareness among Australians about the environmental impact of their vehicles and our willingness to embrace sustainable transportation solutions.”

The driving force behind this expansion has been commercial finance, primarily driven by novated leasing, accounting for 80 per cent EVs financed between June and January 2023. Novated leasing for EVs reached a staggering $200 million in June, a substantial leap from just over $50 million in January 2023.

This evolution in Australia’s automotive landscape further emphasises the role finance plays in accelerating Australia's transition to zero-emission EVs.

"While more affordable EV models are entering the Australian market, the initial upfront cost remains a substantial barrier for many. We also need to double-down on EV charging infrastructure initiatives to make EV uptake easy. Even though there is still a lot to do, the latest data shows that government and industry actions are working. AFIA is committed to playing a pivotal role in helping Australians make the shift to cleaner, greener transportation options,” explains Ms Tate.

Australia's passenger cars and light commercial vehicles are responsible for more than a tenth of the country's total emissions.

“The groundbreaking shift in EV financing is not only about numbers, but also about paving the way for a sustainable future. To combat climate change effectively, we must continue to drive this momentum toward cleaner transportation options,” adds Ms Tate.

“By supporting EV financing and adopting cleaner transportation solutions, we can collectively reduce our carbon footprint and make a significant impact on our environment,” concludes Ms Tate.

For more information or to schedule an interview with Diane Tate, please email: media@afia.asn.au

Download the full report here.