EV Sales Accelerate as Petrol Prices Bite
Australia’s electric vehicle market experienced a dramatic surge in demand during March 2026, as record-high petrol prices pushed consumers to reconsider their transport costs and energy security. New data from the Electric Vehicle Council (EVC) reveals a significant acceleration in EV uptake, with sales for leading brands Tesla and Polestar climbing 40 per cent in the first quarter of 2026 compared to the same period in 2025.
The two brands sold a combined 7,725 vehicles in the first quarter, with 3,645 of those delivered in March alone — a 21.1 per cent increase year-on-year. This spike in sales coincides with petrol prices frequently exceeding $3.00 per litre in many parts of the country, a consequence of instability in global oil markets.
Financial institutions have also reported a massive shift in consumer financing. The Commonwealth Bank recorded a staggering 161.5% increase in weekly new battery electric vehicle (BEV) loan volumes in March compared to the February average. Similarly, online auto marketplace Carsales noted that searches for EVs on its platform nearly tripled from February to March.
“Volatile global oil markets are changing the conversation. Australians aren’t asking whether EVs are the future anymore. They’re asking which one they can get their hands on, and when,” said Electric Vehicle Council Chief Executive, Julie Delvecchio.
Government Incentives and Used Market Feel the Shockwave
Adding to the momentum, the Australian Government’s Clean Energy Finance Corporation (CEFC) announced a new partnership with Volkswagen Financial Services on April 1, 2026. The initiative offers discounted finance rates of up to 1.0 per cent for customers purchasing eligible electric vehicles from Volkswagen Group brands, including Audi, Skoda, Cupra, and Volkswagen. The program, backed by a $100 million fund from the CEFC, applies to new and used EVs under the luxury car tax threshold.
The unprecedented demand is also creating unusual conditions in the secondhand market. For the first time, automotive data analysts have observed used EV prices increasing. Data from MotorMetrics showed the asking price for secondhand Tesla Model Ys rose by over 6% in the last two weeks of March, with the Model 3 and MG4 also seeing price increases. This is a strong indicator that dealers are confident in the rising demand and that the incoming stock of used EVs will command higher prices, a rare phenomenon in the used car market.
Growing Pains Emerge as Charging Networks Strained
However, the rapid influx of new EVs is placing noticeable strain on public charging infrastructure. The recent Easter long weekend, a peak period for road travel, saw significant queues and wait times reported at major charging hubs. The 16-stall Tesla Supercharger station in Albury, a critical point on the busy Melbourne-Sydney route, experienced wait times exceeding 25 minutes as holidaymakers made their return journeys.
This highlights the challenge of infrastructure keeping pace with vehicle sales. While network expansion continues, with Western Australia recently opening the state’s fastest charging station—a 300kW unit in Bridgetown—the Easter congestion demonstrates that peak demand can still overwhelm capacity in key locations.
The March sales data underscores a pivotal shift in the Australian automotive landscape. While the official VFACTS sales data for all brands is due next week, the early figures from the EVC and related financial data paint a clear picture: the combination of high fuel costs and increasing EV model availability is accelerating Australia’s transition to electric mobility faster than ever before.