The great Aussie car divide was once Ford versus Holden – now it’s fuel versus electric power.
New research suggests the nation’s car market is splitting in two – those embracing EVs, and those who want nothing to do with them.
According to new data from comparison site Savvy, 28 per cent of motorists now prefer fuel-based cars over EVs – up sharply from just 16 per cent in 2023.
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That’s happening even as EVs become cheaper, more accessible and harder to ignore.
Cox Automotive Australia corporate affairs manager and analyst Mike Costello said there are now more than 20 Chinese brands in the market competing heavily on value and technology.
“Chinese brands have roughly 25 per cent market share here in 2026.
There are more than 100 EV models on sale, priced as low as $25,000. EVs that can cover 500km on a charge are common,” he said.
AN EMOTIONAL DEBATE
Just a few years ago, electric cars were seen as luxury purchases. Now, with price cuts, salary packaging perks and existing fringe benefits tax exemptions, switching to an EV could save buyers thousands.
On paper, it should be the perfect formula for an EV boom. Instead, the debate is becoming increasingly emotional.
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Mr Costello said EVs were increasingly becoming wrapped up in broader “culture war” style debates, with opinions around electric cars becoming more entrenched.
“We do live in an era where strong opinions are amplified, and where there is often quite a binary sentiment towards subjects. Things are either the greatest or the worst. If someone is ‘all-in’ on EVs, then there may well be someone else who sets themselves in opposition to this,” he said.
The survey also suggests Tesla’s dominance may be slipping. The once-undisputed king of the EV boom has fallen to third place among the most desirable EV brands for Australians, overtaken by Chinese giant BYD.
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Mr Costello said Tesla chief executive Elon Musk had become so closely linked with EVs that public opinion about him could influence how some Australians feel about electric cars more broadly.
“Sentiment surveys show people have strong feelings towards him, and he is synonymous with his brand in ways that few other senior leaders are,” he said.
Many drivers also remain confused about the real cost of owning an EV, according to the survey.
More than three quarters of respondents admitted they had no idea what it costs to charge an EV at home. Nearly half believed it costs $31 or more, despite the average sitting closer to $20.
At the same time, some of the biggest barriers traditionally holding EVs back are beginning to weaken.
Affordability concerns have dropped sharply, with nearly half of those surveyed now citing price as the biggest barrier to EV ownership – down dramatically from 76 per cent in 2023.
Range anxiety is also easing as newer models offer longer driving distances and charging infrastructure slowly improves.
But as some practical concerns ease, distrust around EV technology appears to be lingering.
Motorists are increasingly dubious about autonomous driving systems, with 63 per cent uncomfortable or doubtful about the technology – a sharp jump from 47 per cent in 2023.
Others appear to be meeting somewhere in the middle.
About one in five respondents said they’d consider a hybrid or “electric-lite” option, while another 36 per cent remain undecided about buying an EV altogether.
For now at least, Australia’s EV transition looks less like a smooth takeover, and more like a nation cautiously keeping one foot on the petrol pedal.
