Australia Ranks Among World's Fastest-Growing EV Markets as Electric Cars Displace Billions in Oil Imports

A fresh analysis from European energy and climate think tank Ember has placed Australia and New Zealand among the two fastest-expanding electric vehicle markets globally, a shift that traces back to the fossil fuel supply shock that followed the outbreak of the Iran war in late February.

According to Ember’s figures, electric car fleets across oil-importing nations have collectively displaced an estimated 200 million barrels of crude over the six months since the Hormuz energy crisis began, translating to roughly $US20 billion (about $A29 billion) in avoided oil import costs. Battery-electric vehicles account for the bulk of that total at $US16.5 billion, with plug-in hybrids making up the remainder — though Ember notes the PHEV contribution could have been larger, since real-world driving data shows many owners lean on their combustion engines more heavily than manufacturers originally promised.

China dominated the savings, accounting for $US14 billion of the global figure, followed by the European Union at $US3.1 billion, where Germany and France led with approximately $US760 million and $US560 million respectively. Measured against each country’s overall oil consumption, Denmark stood out as the clear leader, with electric cars offsetting 13% of national oil use in 2025. Australia’s own contribution was pegged at $US220 million.

Ember attributes the demand surge directly to pump prices. It reports that India, Chile, Australia and New Zealand all recorded sharp jumps in BEV sales share after March 2026 as consumers felt the pinch of costlier fuel. Australian market data showed EV sales climbing 136% between the start of March and the end of August, with momentum carrying into September — the second consecutive month in which electric cars represented nearly one in four new vehicle sales. In percentage terms, only New Zealand grew faster.

The broader picture shows the shift rippling through manufacturing as well as sales. Ember points to European automakers responding with more affordable models — new offerings from Renault, Volkswagen and Skoda topped European EV charts in July — while domestic players are gaining ground in Asia, with VinFast already producing Vietnam’s best-selling car in 2025 and Tata and Mahindra together supplying more than 60% of India’s EV sales in the first half of 2026. Brazil is reinforcing its position as a regional production hub following the opening of BYD’s plant in 2025, with capacity expected to climb to 300,000 vehicles annually, and Mexico’s new domestic manufacturer Olinia is slated to begin small EV production in 2027.

By contrast, the United States has moved in the opposite direction, having withdrawn federal EV support last year. Its electric share of light-duty sales slipped to just 6% in the first eight months of 2026, and of the 56 countries tracked in Ember’s monthly sales monitor, 49 now exceed the US on BEV market share — with Brazil, India, Italy, Malaysia and New Zealand among 15 nations that overtook it for the first time this year. On a trailing 12-month basis, Norway continues to lead the world at 97.8% battery-electric share, ahead of Hong Kong at 90% and Denmark at 79.8%.