Australia's Electric Vehicle Financing Hits $6 Billion Milestone in 2024

According to the Australian Finance Industry Association (AFIA), the number of electric and hybrid vehicles financed in 2024 rose to 104,835 units, up from 64,288 in 2023. Hybrid vehicles led this trend, with 60,083 units financed, while fully electric vehicles accounted for 44,752 units.

AFIA CEO Diane Tate highlighted that hybrid vehicles remain a popular choice for Australians, especially those without easy access to charging infrastructure or who require the convenience of petrol backup for longer journeys. This preference is particularly sensible as public and private charging networks continue to develop.

Commercial financing played a pivotal role in this growth, with 82,617 commercial vehicles financed in 2024-a 62% increase from 51,560 in 2023. Novated leasing emerged as a significant driver, representing nearly 70% of all transactions.

These figures align with a recent AFIA-commissioned report by Deloitte Access Economics, which identifies key barriers to electric and hybrid vehicle adoption, including underdeveloped charging infrastructure and fragmented policy settings. The report emphasizes the critical role of financial incentives and policy consistency in accelerating Australia's transition to lower-emission transport.

For consumers considering the switch to electric or hybrid vehicles, this trend indicates a growing availability of financing options tailored to sustainable transport. Prospective buyers are encouraged to explore various loan products and consult with financial advisors to identify the most suitable financing solutions for their needs.