Australia Hybrid Electric Vehicle Market

Australia Hybrid Electric Vehicle Market Overview:

The Australia hybrid electric vehicle market size reached 360.2 Thousand Units in 2024. Looking forward, IMARC Group expects the market to reach 2,710.5 Thousand Units by 2033, exhibiting a growth rate (CAGR) of 23.88% during 2025-2033. The market is fueled by government incentives, rising fuel prices, growing environmental awareness, and advancements in battery technology. Increasing consumer demand for fuel-efficient vehicles and expanding charging infrastructure further boost the Australia hybrid electric vehicle market share, supporting country’s transition toward sustainable transportation solutions.

Australia Hybrid Electric Vehicle Market Trends:

Government Incentives and Policies

The Australian government is promoting the adoption of hybrid and electric vehicles through financial incentives, rebates, and tax reductions. Several states offer subsidies on hybrid vehicle purchases, reduced registration fees, and exemptions from certain road taxes. Additionally, stricter emission regulations and fuel efficiency standards encourage automakers to introduce more HEV models, which is driving the Australia hybrid electric vehicle market growth. For instance, in December 2024, National Australia Bank (NAB) collaborated with a top EV distributor and providers of charging infrastructure to provide advantages to current business clients. These perks include a one-time charging credit with JOLT or a one-year discount on the list price of new BYD electric or plug-in hybrid cars, as well as lower expenses for EV fleet charging with Evie Networks. The collaboration will help companies lower their transportation-related emissions sooner while also making EV ownership more accessible and reasonably priced. Government-led initiatives supporting green transportation and investments in sustainable mobility solutions further contribute to the increasing demand for hybrid electric vehicles in Australia. These policies make hybrid cars more affordable and attractive to both individual buyers and corporate fleet owners.

Growing Environmental Awareness

As concerns over climate change and carbon emissions grow, Australian consumers are shifting towards eco-friendly vehicle options. Hybrid electric vehicles emit less pollution than conventional gasoline cars, helping to lessen environmental effects. Many buyers are now prioritizing sustainability, leading to increased demand for hybrid models. Automakers are also investing in greener technologies to meet consumer expectations and regulatory requirements, which is creating a positive impact on the Australia hybrid electric vehicle market outlook. The push for reducing greenhouse gas emissions and promoting clean energy solutions has positioned HEVs as a crucial step toward a more sustainable transportation system in Australia. This growing consumer shift is influencing mainstream car choices and also expanding into niche segments like off-road and utility vehicles. For instance, in June 2024, GWM announced the launch of the POER Sahar in Australia, marking the first HEV-powered off-road pickup in the market. With a powerful hybrid and diesel engine option, it boasts a 3.5-ton towing capacity. The vehicle has received praise from the media for its performance, comfort, and advanced intelligent features.

Australia Hybrid Electric Vehicle Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on propulsion type, configuration type, vehicle type, and power source.

Propulsion Type Insights:

• Full Hybrids
• Mild Hybrids
• Plug-in Hybrids
• Others

The report has provided a detailed breakup and analysis of the market based on the propulsion type. This includes full hybrids, mild hybrids, plug-in hybrids, and others.

Configuration Type Insights:

• Series HEV
• Parallel HEV
• Combination HEV

A detailed breakup and analysis of the market based on the configuration type have also been provided in the report. This includes series HEV, parallel HEV, and combination HEV.

Vehicle Type Insights:

• Passenger Cars
• Commercial Vehicles
• Two-Wheelers
• Others

A detailed breakup and analysis of the market based on vehicle type have also been provided in the report. This includes passenger cars, commercial vehicles, two-wheelers, and others.

Power Source Insights:

• Stored Electricity
• On Board Electric Generator

A detailed breakup and analysis of the market based on the power source have also been provided in the report. This includes stored electricity and on board electric generator.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Hybrid Electric Vehicle Market News:

• In March 2025, Skoda announced its plans to launch plug-in hybrid and mild hybrid vehicles in Australia by the end of 2025. The Kodiaq and Superb will feature PHEVs with up to 135km electric range, while the Octavia is expected to introduce mild-hybrid technology. These moves aim to boost local sales amid growing demand.

Australia Hybrid Electric Vehicle Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia hybrid electric vehicle market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia hybrid electric vehicle market on the basis of propulsion type?
• What is the breakup of the Australia hybrid electric vehicle market on the basis of configuration type?
• What is the breakup of the Australia hybrid electric vehicle market on the basis of vehicle type?
• What is the breakup of the Australia hybrid electric vehicle market on the basis of power source?
• What is the breakup of the Australia hybrid electric vehicle market on the basis of region?
• What are the various stages in the value chain of the Australia hybrid electric vehicle market? 
• What are the key driving factors and challenges in the Australia hybrid electric vehicle market?
• What is the structure of the Australia hybrid electric vehicle market and who are the key players?
• What is the degree of competition in the Australia hybrid electric vehicle market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia hybrid electric vehicle market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia hybrid electric vehicle market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia hybrid electric vehicle industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.