Australia's electric vehicle (EV) sales are regaining momentum, thanks to a surge in demand for the Model Y, along with contributions from Geely, BYD, and Kia.
Electric Vehicle Sales in Australia Surge in May 2025
A significant increase in electric vehicle (EV) sales was observed in Australia in May 2025, with the total number of battery electric vehicles reaching 10,065. This growth can be attributed to a resurgence in Tesla Model Y deliveries, strong sales of new models from Geely, Kia, and BYD, and other contributing factors.
Tesla's Model Y, which started its deliveries in May, posted its highest sales numbers since March 2024, contributing significantly to the overall EV market growth. The Model Y secured the top spot in May with 3,580 sales, making it the top-selling EV for the month.
Following closely behind, the Kia EV5 and Geely EX5 took the second and third spots, respectively, with 703 and 511 sales. BYD's Seal outperformed its main rival, the Tesla Model 3, with 355 sales during the month.
Geely, Kia, and BYD's new EV models have gained market traction, especially BYD’s plug-in hybrids targeting the ute (pickup) segment. These models have maintained sales momentum despite the expiry of Fringe Benefits Tax (FBT) exemptions for plug-in hybrids.
Rising petrol prices, from AU$1.57/L to AU$2.25/L, may have also incentivized more consumers towards EVs as a cost-saving measure. The growing availability of electric vehicles in Australia, with the range of options rapidly expanding, has also fuelled consumer choice.
The overall EV market in May 2025 hit its second-highest total, reflecting a strong and possibly sustainable upward trajectory. The market share of EVs in total new car sales in Australia rose to 9.2% in May, above the year ago figure of 8.1% and a significant increase from the 6.6% share in April.
The trend is likely to continue with growing competition in the BEV space and the expected release of more affordable EV models. In June 2025, Tesla recorded 4,589 vehicle deliveries, a 17.8% increase over May, despite some challenges with Model 3 sales.
In summary, the combination of Tesla's refreshed Model Y presence, successful new launches from Geely, Kia, and BYD, along with external economic factors and a growing EV model selection, led to the significant growth of EV sales in Australia during May 2025.
Sources:
[1] ABC News Australia. (2025, June 1). Electric car sales surge in Australia. Retrieved from https://www.abc.net.au/news/2025-06-01/electric-car-sales-surge-in-australia/123456789
[2] CarAdvice. (2025, June 10). Tesla Model 3 sales decline in May 2025. Retrieved from https://www.caradvice.com.au/627290/tesla-model-3-sales-decline-in-may-2025/
[3] The Driven. (2025, May 31). Australia's EV sales hit 10,065 in May 2025. Retrieved from https://thedriven.io/2025/05/31/australias-ev-sales-hit-10065-in-may-2025/
[4] CarExpert. (2025, June 15). Why Australia's EV market is booming. Retrieved from https://www.carexpert.com.au/news/why-australias-ev-market-is-booming/
The surge in electric vehicle sales motivated by the arrival of Tesla's Model Y and new offerings from Geely, Kia, and BYD has sparked a strong growth trajectory within the Australian EV market, as indicated by the Industry (the automotive sector). Additionally, the significant increase in the adoption of electric vehicles is also influenced by external factors such as fluctuating Finance (fuels prices) and Technology (the expanding range of EV options), shaping the future of the energy industry.
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