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Record Growth in Electric and Hybrid Vehicle Financing in Australia

AFIA Reports $6.17 Billion in EV and Hybrid Vehicle Loans for 2024

Record Growth in Electric and Hybrid Vehicle Financing in Australia?w=400

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The Australian Finance Industry Association (AFIA) has released its latest Electric Vehicle & Hybrid Finance Report, revealing a significant surge in financing for electric and hybrid vehicles across the nation.
In 2024, Australians secured over $6.17 billion in loans for these vehicles, representing a 50% increase compared to the previous year.
This substantial growth underscores a clear shift towards cleaner transportation options among both consumers and businesses.

According to the report, a total of 104,835 electric and hybrid vehicles were financed in 2024, up from 64,288 in 2023. Hybrid vehicles led the charge, with 60,083 units financed, while fully electric vehicles accounted for 44,752 units. This trend highlights the growing confidence in low-emission vehicles, despite ongoing challenges related to infrastructure and policy.

Commercial financing played a pivotal role in this transition, with AFIA members financing 82,617 commercial vehicles in 2024—a 62% increase from the previous year. Notably, novated leasing emerged as a major driver, representing nearly 70% of all transactions. This indicates that businesses are increasingly leveraging financial solutions to adopt cleaner vehicle technologies.

AFIA CEO Diane Tate emphasized the importance of finance in facilitating this shift. "Finance is critical to turning good intentions into real outcomes. It removes upfront cost barriers and gives more Australians access to vehicles that are cleaner, cheaper to run, and increasingly affordable," she stated.

However, the report also highlighted the market's sensitivity to policy changes. Early 2025 data showed a sharp decline in hybrid vehicle sales following the announcement of the end of the Fringe Benefits Tax (FBT) exemption for hybrids and plug-in hybrid electric vehicles (PHEVs). In April 2025, hybrid new business value dropped by 47.2%, and the volume of hybrid vehicles financed fell by 40% compared to March 2025. This downturn followed a surge in consumer activity in March, as buyers rushed to secure vehicles ahead of the policy change.

These figures underscore the significant impact that financial incentives and policy consistency have on accelerating or hindering Australia's transition to lower-emission transport. As the nation continues to navigate its path towards sustainable mobility, the role of tailored financing solutions and supportive policies remains crucial in maintaining momentum.

Published:Saturday, 4th Oct 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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