‘Flipped on its head’: Sticker price and running costs steer thousands of Aussies toward EVs

Damaged electric vehicles are being sold for the price of new diesel or petrol cars as EV sales have more than doubled since global oil prices began rising.

EV sales still represent less than 10 per cent of all cars sold in Australia each year.

But the closure of the Strait of Hormuz and rising global fuel prices mean used EV sales in Australia have more than doubled from 3,176 sold in February to 7,557 in March, figures from the Australian Automotive Dealers Association show.

Car and truck auctioneer Pickles is seeing the same strong demand for electric vehicles, especially when cars are damaged or put on sale.

The auction houses’ latest quarterly report details how at the end of March Pickles Adelaide had 30 nearly new cars from Chinese manufacturer BYD.

Cars suffered “exterior damage following concrete spraying incident” — 9,300 people added the listing to the Pickles watchlist and 41,000 people viewed the listing.

“The interest in BYD vehicles has shown how closely buyers are watching this category. When near-new electric vehicle stock comes to market with repair potential, buyers are ready to act quickly,” said Nick Johnson, general manager of Pickles Salvage.

“We’re seeing strong demand for repairable EVs leading to a 35 percent price increase in March compared to February, especially as buyers see a clear path to getting the vehicle back on the roads.”

Tesla accounts for the bulk and three of the top 10 best-selling salvaged EVs on Pickles.

However, BYD is the second most popular brand, with three models among the top 10 best-selling models.

Chinese EV brands (BYD, MG, Chery and Great Wall Motors) have reduced the costs faced by Australian drivers with the initial launch of Tesla.

BYD is currently the sixth best-selling car brand in Australia with a six per cent market share. Chery Tiggo 4 Pro is the third best-selling model overall.

Investment firm Global X ETFs thinks these price reductions are solidifying.

“Our analysis shows that over a typical 10-year ownership period, the average EV driver could now be up to $10,750 better off than a gas or diesel driver,” said Global X ETF analyst Justin Lin.

“Even under more conservative assumptions where fuel prices normalize over time, the economy continues to support electric vehicles by a meaningful margin.”

Mr. Lin said the key drivers of low gasoline prices and high down payment costs for electric vehicles in early 2020 (compared to gasoline and diesel vehicles) have “now reversed.”

Australian motorists have been warned again about relying on volatile oil markets as the Iran war creates a second oil price shock in five years.

“The recent surge in interest in electric vehicles is likely at least partly an immediate reaction to rising fuel prices and may wane over time, especially as wait times at dealerships begin to lengthen,” Mr. Lin said.

“However, it would be a mistake to underestimate the power of even a temporary increase, as consumer network effects are likely to be effective.

“Word-of-mouth verification and real-world evidence of reliability strengthen trust among potential buyers. This can create a positive feedback loop that supports a more sustainable re-acceleration in EV purchasing over time.”

The surge in EV purchases in March completely cut off the supply line; available stocks fell 38 percent to 28 days; This falls well below the 60 to 90 days that the Australian Automotive Dealers Association considers “balanced”.

While Mr Lin argued that electric vehicles had “reached parity across the board” with petrol vehicles by 2024 “on a total cost of ownership basis”, road transport expert and accounting senior lecturer Anna Mortimore said this was not quite true.

It states that the new model Kia electric SUV is sold at a price of $ 61,990 plus GST and stamp duty, while Kia’s similar gasoline SUV is sold at a price of $ 30,500, again without additional taxes.

A spokesman for the Electric Vehicle Council said price parity would be the next important “short-term” milestone for EVs.

“For many Australians, electric vehicles are already cheaper to own, even if they are not yet cheaper to buy,” the spokesman said.

“Regardless of how and when EV drivers charge their cars, electricity is cheaper per mile than gasoline. EVs are also about $3000 cheaper per year to service and maintain.”

The electric car rebate subsidy and new vehicle efficiency standards were key policies to “bring more efficient and lower-cost electric vehicles to our market.”

“One of the clear benefits of EV ownership is the insulation it provides from volatile global oil markets… Policy stability and the rollout of more charging infrastructure are vital to this continued momentum,” the spokesperson said.

The Victorian Automotive Chamber of Commerce sees a “structural” change in the Australian car market with the current fuel price shock.

Chamber president Peter Jones said cheaper prices, especially for Chinese electric vehicles, combined with significantly lower operating costs, were narrowing the cost gap for drivers.

“March 2026 new vehicle sales data makes it clear that something structural has changed in the Australian market,” he said.

“The total cost of ownership calculation has been shifting in favor of electric vehicles for some time now. What the current fuel price environment has done is make this calculation undeniable and urgent for ordinary consumers.

“What we’re seeing now is the moment when the numbers finally speak loud enough for mainstream buyers to take action.”

He said putting a date on when electric vehicles will outnumber gasoline and diesel cars would be a fool’s errand mired in countless factors.

“What I will say is that it is no longer a question of if electric vehicles will become the dominant form of personal transport in Australia, but when, and the answer will come sooner than most people predicted 18 months ago,” he said.