EV Loan Hub :: News
SHARE

Share this news item!

Electric Vehicle Financing Sees Significant Growth in Australia

AFIA Reports 48% Increase Amidst Broader Market Decline

Electric Vehicle Financing Sees Significant Growth in Australia?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Finance Industry Association (AFIA) has reported a 48% year-on-year increase in electric vehicle (EV) financing for February 2026, highlighting a robust demand for EVs despite a general downturn in the motor finance market.

While the overall value of new vehicles financed declined by nearly 3% compared to the previous year, EV financing experienced substantial growth. This trend suggests that Australian consumers are increasingly prioritizing sustainable transportation options, even in the face of economic challenges.

AFIA CEO Diane Tate attributed this surge to factors such as the Fringe Benefits Tax (FBT) exemption for EVs, rising fuel prices, and improved vehicle supply. However, she noted that EVs still constitute only 16% of all vehicles financed in Australia over the past year, indicating significant potential for further growth.

Conversely, financing for hybrid vehicles has declined, with a 42% drop in February 2026 compared to the same month in 2025. This decrease follows the removal of the FBT exemption for plug-in hybrid vehicles in March 2025, suggesting that government incentives play a crucial role in consumer adoption of alternative fuel vehicles.

The AFIA's findings underscore the importance of supportive policies and infrastructure development to sustain and accelerate the transition to electric mobility in Australia.

Published:Thursday, 7th May 2026
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.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Finance News

Businesses Accelerate EV and Battery Finance Amid Fuel Volatility
Businesses Accelerate EV and Battery Finance Amid Fuel Volatility
21 Jun 2026: Paige Estritori
Australian businesses are increasingly treating electrification as a cost-control strategy, not just an environmental decision. Recent reporting on bank lending data shows a sharp rise in finance for green equipment, with NAB saying its green equipment loan uptake between March and May 2026 was almost double the level recorded over the same period last year. - read more
Federal Budget 2026: Impacts on Electric Vehicle Owners and Charging Infrastructure
Federal Budget 2026: Impacts on Electric Vehicle Owners and Charging Infrastructure
14 Jun 2026: Paige Estritori
The 2026 Federal Budget introduces significant changes affecting electric vehicle (EV) owners and prospective buyers in Australia. A key measure is the gradual reduction of the Fringe Benefits Tax (FBT) exemption for EVs purchased through novated leases. Initially introduced in 2022 to encourage EV adoption, this exemption allowed eligible EVs to be salary packaged without attracting FBT, substantially reducing running costs for many buyers. - read more
New Partnership Offers Affordable Financing for Hyundai and Kia Electric Vehicles
New Partnership Offers Affordable Financing for Hyundai and Kia Electric Vehicles
07 Jun 2026: Paige Estritori
The Clean Energy Finance Corporation (CEFC) has partnered with Hyundai Capital Australia to offer discounted financing options for eligible Hyundai and Kia electric vehicles (EVs). This initiative aims to make EV ownership more accessible by reducing the financial barriers associated with purchasing new, fully electric vehicles priced below the luxury car tax threshold of $91,387. - read more
Leading Australian Bank Offers Low-Interest Loans for Electric Vehicle Buyers
Leading Australian Bank Offers Low-Interest Loans for Electric Vehicle Buyers
31 May 2026: Paige Estritori
In a significant move to promote sustainable transportation, a leading Australian bank has introduced low-interest loans specifically tailored for electric vehicle (EV) buyers. This initiative aims to make EV ownership more accessible and affordable, aligning with the growing consumer interest in environmentally friendly transportation options. - read more


Car Loan Articles

Unlocking Your EV Dreams: A Simple Guide to Loan Eligibility in Australia
Unlocking Your EV Dreams: A Simple Guide to Loan Eligibility in Australia
In recent years, Australia has witnessed a significant shift towards eco-friendly transport solutions. Electric vehicles (EVs) are at the forefront of this movement, offering a sustainable alternative to traditional petrol and diesel cars. With advancements in technology and increased awareness about environmental impacts, more Australians are considering EVs as their next vehicle choice. - read more
Fluids and Filters: What Every EV Owner Needs to Know
Fluids and Filters: What Every EV Owner Needs to Know
Welcome to the world of EVs, where innovation meets sustainability. In Australia, EVs are gaining popularity as environmentally conscious drivers seek alternatives to traditional gasoline-powered cars. As we aim for a cleaner, greener future, understanding the basics of maintaining these vehicles becomes crucial. - read more
New vs. Used EVs: What Fits Your Sustainable Lifestyle Best?
New vs. Used EVs: What Fits Your Sustainable Lifestyle Best?
Welcome to the world of EVs (electric vehicles), where sustainable living and cutting-edge technology merge seamlessly. As Australia embraces the green movement, more people are considering EVs as their preferred mode of transport. Whether you're looking to reduce your carbon footprint or simply want to enjoy the benefits of electric transport, there's no better time to explore your options. - read more

Knowledgebase
Mortgage Insurance:
Insurance that protects a lender in case a borrower defaults on their mortgage.