EV finance a multi-billion dollar market

John Kavanagh

The Australian Finance Industry Association reported that its members provided close to A$2.5 billion of electric vehicle finance in 2023.

AFIA members reported that commercial finance is the primary driver of growth, and there has been a significant increase in the use of novated leases.

Commercial finance peaked at 4,000 EVs financed in June. Consumer finance numbers were steady but didn’t get above 1,000 in any month.

The average amount of finance for an EV was $64,300, compared with $48,000 for vehicles with petrol engines.

This is the AFIA’s first survey of the EV finance market, and so there was no comparison with prior years or with petrol engine vehicle finance volumes.