NRMA Insurance is the country’s largest motor insurer. EVs make up around 3% of its motor policies with the share expected to rise to approximately 10% by 2030 as adoption increases. Tesla accounts for around 50%, closely followed by BYD, MG, Hyundai and BMW. Other emerging brands include Geely, Zeekr and Omoda Jaecoo.
There is an estimated 500,000 battery EVs on Australian roads, representing around 3% of the national vehicle fleet.
Looking ahead, CSIRO modelling suggests EVs will become the dominant form of transport, with 97% of Australia’s light passenger vehicle fleet expected to be electric by 2050.
Key Findings from the Research:
1. EV Interest continues to Grow:
Consideration of battery electric vehicles (BEVs) has increased from 20% in 2024 to 31%.
Consideration of plug-in hybrid electric vehicles (PHEVs) has increased from 41% to 58%.
- Only 17% of Australians say they would not consider purchasing an EV.
2. Barriers to adoption persist:
Among Australians who would not consider buying an EV, reasons cited are:
Battery life concerns (59.5%)
Driving range anxiety (55.7%)
Charging time (53.9%)
- Battery fire risk concerns (51.6%)
3. Confidence remains a key challenge:
Australians are seeking reassurance about:
Resale value: Owner confidence in EV resale value has fallen from 76% to 56%.
Battery longevity: 60% of non-considerers cite battery life as a barrier to purchase.
Charging access: 49% cite a lack of public charging infrastructure and 35% say they cannot charge at home.
Repair availability: 57% are concerned about a lack of trained mechanics who can service or repair EVs in their area.
- Battery recycling and disposal: 69% are concerned about end-of-life battery management, and 74% support a clear process for battery disposal, reuse and recycling.
4. Consumer perceptions are lagging reality:
56% remain concerned about EV fire risk despite such incidents being rare.
Battery life remains the leading barrier to adoption despite the availability of battery health testing and monitoring solutions.
The proportion of Australians who believe EVs cannot meet everyday driving needs has fallen from 45% to 38%.
Australians familiar with EVs are more than twice as likely to consider purchasing one (63% compared with 24%).
5. Used EVs Represent the Next Growth Frontier:
54% of prospective EV buyers would consider purchasing a used EV.
A further 7% would only purchase a used EV.
82% support battery health monitoring and testing, suggesting strong consumer demand for independent battery certification.
Closing the confidence gap: Five priorities for accelerating EV adoption
1. Work toward a national battery health standard
Establish a nationally consistent, independently governed battery health standard for used EVs, including standardised testing, reporting and disclosure at point of sale. This would increase confidence in the used EV market, support resale values, and address consumer concerns about battery longevity.
2. Help solve charging for apartment residents
Accelerate investment and policy reform to expand EV charging in strata and apartment buildings. Addressing charging access for residents without off-street parking is critical to broadening EV adoption beyond households with driveways.
3. Build repair capability, including outside the cities
Expand EV repair and servicing capability through national training standards and increased workforce investment, with a focus on regional Australia. Improving access to qualified technicians would reduce a key ownership barrier while leveraging trusted mechanic advice to build consumer confidence.
4. Move toward a battery stewardship framework
Develop a comprehensive battery stewardship framework covering collection, recycling, repurposing and end-of-life management. Clear pathways for battery disposal and reuse would address environmental concerns and strengthen public confidence in EV sustainability.
5. Meet regional Australia where it is
Prioritise regional and remote communities through targeted investment in charging and servicing infrastructure, supported by messaging focused on practical benefits such as reliability and self-sufficiency. Expanding both infrastructure and awareness will be essential to lifting regional EV adoption.
About the report
Changing Gears: Closing the Confidence Gap is the third instalment of the series, conducted by market research company Ipsos on behalf of NRMA Insurance. You can view the report here: https://www.nrma.com.au/car-insurance/ev-insurance/ev-reports
Methodology
This report draws on a nationally representative survey of approximately 2,000 Australians conducted online by Ipsos on behalf of NRMA Insurance. The sample is weighted to reflect the latest ABS census data on key demographic variables. Comparisons to “Wave 1” refer to the survey of 2,079 Australian consumers conducted in February 2024, which informed Changing Gears: The road ahead for EV adoption in Australia and Changing Gears: Exploring the Future of Battery Safety, Sustainability, and Electric Vehicle Repairs. Additional analysis draws on secondary sources as referenced.
