EV sales “shooting off” in Melbourne’s east as petrol and diesel cars lose their stronghold

Oakleigh car dealership Melbourne’s Cheapest Cars’ decision to launch an EV division two years ago has paid dividends, with electric cars now taking up half the lot.

Matthew Sims & Jacob Wallace
November 21, 2025

Electric and hybrid vehicles now make up more than a quarter of new auto sales, as the market share for cars powered by internal combustion engines fell to less than 70 percent for the first time.

In Melbourne's eastern suburbs, one car dealership says real life backs up the stats.

🚘What happened: According to a report from the Australian Automobile Association (AAA), the latest data from the July to September period showed EV sales accounted for 9.7 percent of new vehicle sales – the highest quarterly proportion for EV sales recorded in Australia since data collection began in 1991.

🧮State-wide stats: In Victoria, a total of 8,904 EVs were sold between July and September – a 3.08 percent increase from the previous quarter (8,638) and a 67.72 percent increase since the corresponding period in 2024 (5,309).

EV sales accounted for about 11 percent of total sales – up from 10.19 the previous quarter and seven percent in the July to September 2024 period.

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📈Local growth: Melbourne’s Cheapest Cars launched its EV division – Evolve Motors – about two years ago.

Evolve Motors EV operations manager Kevin Abelnica said EVs had been “shooting off like crazy”, with the proportion of sales from EVs growing by about 40 to 50 percent year-on-year.

🗣️“We started off with one a couple of years ago and then from there, we just got a lot more,” said Abelnica. “The downstairs part of the dealership is pretty much primarily EVs. I wouldn’t be surprised if it ended up coming all the way upstairs because of the popularity.”

⌚Quick turnover: Abelnica said there was always healthy demand for EVs, with the demographics of buyers ranging from families to young professionals and aging drivers.

🗣️“On Sunday, half the cars that we sold were EVs,” he said. “Some days, Teslas make up half the enquiries and we don’t have enough staff to handle everyone.”

⛽Fuel fever dropping: AAA’s data showed cars with an internal combustion engine (ICE) fell below 70 percent market share – 69.65 percent across Australia and 68 percent in Victoria – for the first time.

In Victoria, ICE vehicle sales were down about 15 percent from two years ago, when the category made up about 83 percent of the market.

🛻Used cars, too: According to a report from the Australian Automotive Dealer Association (AADA), used hybrid sales have more than doubled in the last two years as wel, rising from 6,868 in October 2023 to 14,784 in October 2025.

Used EV sales in October saw a 7.9 percent increase to 3,231.

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🪙Are EVs cheaper to run? The average Australian drives around 12,000 kilometres per year and spends around $2,500 on petrol.

An EV travelling the same distance would only cost $500 to charge, with yearly charging costs dropping as low as $200 per year if the EV owner “fills up” using their home’s solar panels.

💸Government subsidies: The Federal Government is attempting to boost EV sales through policies like its New Vehicle Efficiency Standard (NVES) – a limit on the amount of CO2 emissions new cars can produce – and tax exemptions.