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Since the start of March, NAB has recorded a 100 per cent increase in EV loans, while business-related EV inquiries have risen by 88 per cent.
However, vehicle finance brokers said broader economic pressures are shaping demand, with high interest rates and weaker business conditions influencing purchasing decisions.
Businesses adapt to changing conditions
NAB executive for business banking, Shane Ditcham, said Australian businesses were responding to shifting conditions by exploring EVs as a way to manage costs.
“We’ve seen it time and time again – Australian business owners are practical. When conditions shift, they pivot,” Ditcham said.
“We’re seeing more SMEs and larger operators explore EVs and electrification as a way to manage running costs and future-proof their operations, particularly in a period of ongoing fuel price volatility.”
Despite NAB reporting a near doubling in EV finance inquiries for businesses, OurCar Finance Brokers’ Will Frazer said he had not seen a corresponding surge in actual demand.
“I’m not seeing a huge influx of EVs whatsoever,” Frazer said and noted that around 90 per cent of his client base are businesses.
“For a lot of businesses, they’re just not turning over or holding as much money. Credit profiles aren’t as strong and, for industries such as construction, overheads have really gone up.
“I think if people are not worried about the cost of petrol, they’re just not going to buy a car at all.”
Frazer said demand varied significantly by industry, with stronger interest in EVs among white-collar sectors, while industries requiring heavy travel or rural use continued to favour traditional vehicles.
Market pressures reshape buying decisions
Frazer added that current market conditions were also creating opportunities in the traditional vehicle market.
“It’s interesting what might happen this year, because as fuel gets more expensive, for the businesses that are profitable, it’s arguably a good time to buy,” Frazer said.
“Dealerships will probably take deals on cars right now. Say a $70,000 Hilux – you could probably get a few grand off right now because demand is low.
“I’m not completely across all the ins and outs, but businesses are also writing off a degree of the fuel against tax as well.”
From a lending perspective, Frazer said the pricing advantage historically associated with EVs had diminished.
“You used to get a green asset rate, but those rates aren’t as good anymore,” he said.
“Now, when lenders are offering electric rates, there are others that will offer lower rates for a combustion car anyway.
“On top of that, there are some lenders that are no longer interested in funding, regardless of what car you have.”
Consumer demand stronger
On the consumer side, brokers reported a more noticeable increase in EV-related inquiries.
Nick Lissikatos, director of Trelos Finance, said demand had picked up in recent weeks, although EVs had not yet overtaken the broader market.
“We’ve definitely seen an increase over the last couple of weeks, but not to say that it’s taking over the market,” he said.
“It’s probably still around 20 to 25 per cent of the market on our financing side.”
Both brokers noted that much of the demand was centred on hybrid vehicles rather than fully electric models.
“I think a lot of the manufacturers are focusing more on the hybrid piece rather than the full EV because it gives you the mix of both,” Lissikatos said.
“It gives you the EV incentives or benefits while still having a tank to rely on.”
Recent industry data highlights the broader trend. Around 130,000 Australians switched to electric and hybrid vehicles in 2025, accounting for $7.37 billion in vehicle financing, according to the Australian Finance Industry Association (AFIA).
While some tax benefits for plug-in hybrid electric vehicles were removed last year, Lissikatos said demand has remained resilient.
“The demand dropped off at that time, but since then it hasn’t slowed down,” he said.
“It’s like the solar incentives for households – people are still installing solar now. The material gains still outweigh.”
[Related: Majors dominate broker flows, while Macquarie leads broker satisfaction]
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