Surge in Electric Vehicle Loans as Australians Respond to Fuel Price Hikes

The conflict involving Iran has led to disruptions in the Strait of Hormuz, a critical passage for global oil shipments. This has resulted in higher global oil prices and supply concerns, directly impacting Australian fuel costs. In response, many Australians are turning to EVs to mitigate the financial strain caused by these fuel price hikes.

CommBank's data indicates that the interest in EVs is not limited to individual consumers. Business loan applications for Tesla vehicles have increased by 268% in March compared to the same period last year. This trend suggests that both private and commercial sectors are actively seeking alternatives to traditional fuel-powered vehicles.

Further supporting this shift, the Electric Vehicle Council reported that EVs accounted for 13.1% of all new car and light commercial vehicle sales in Australia across 2025, up from 9.6% in 2024. December 2025 set a record, with EVs making up 16.7% of new car sales for the month.

Additionally, the recent conclusion of free trade agreement negotiations between Australia and the European Union is expected to improve the affordability of some European-made electric vehicles. The agreement includes the removal of Australia's 5% tariff on European imports and an increase in the luxury car tax threshold for EVs to $120,000.

As fuel prices continue to fluctuate and environmental concerns grow, the trend towards electric vehicle adoption in Australia is expected to persist. Consumers are increasingly recognizing the long-term benefits of EV ownership, including lower operating costs and reduced environmental impact.