The Federal Government is pushing to lessen the costs of electric vehicles (EVs) in Australia through a new partnership with Hyundai Capital Australia (HCAU).
Up to $60 million has been committed between the Clean Energy Finance Corporation (CEFC) and HCAU to offer discounted finance on Hyundai and Kia EVs, with eligible customers to save between 0.5–1 per cent on their interest rate.
In practice, a 1 per cent discount could see customers with a $70,000 loan save $1900 in interest costs over five years.
The offer will be available to new, fully electric vehicles priced below the luxury car tax threshold.
“This CEFC investment will help lower the cost barrier for households and small businesses, making EV ownership more accessible,” Federal Minister for Energy and Climate Change Chris Bowen said.
“Transport is one of our biggest sources of emissions, and electric vehicles are a key way we cut pollution while saving people money.”
A record 156,000 new EVs took to Australian roads in 2025 (a 38 per cent increase on 2024), with December making up 16.7 per cent of annual sales alone.
Data from the Electric Vehicle Council (EVC) found EVs now hold a market share for new car sales in Australia of 13.1 per cent, up from 9.6 per cent in 2024.
Australia’s EV fleet now comprises more than 454,000 vehicles.
EVC chief executive officer Julie Delvecchio said consumers were seeing the cost advantages of choosing EVs.
“Australians are doing the sums and seeing they can save money, choose from over 150 EV options in popular segments with improved range and charging access,” she said.
“The results show what can happen when growing consumer confidence is backed by government policies that are reducing carbon emissions while saving drivers money.”
The new EV subsidy follows on from the success of the Cheaper Home Batteries scheme, which recently notched 200,000 installations six months after being inaugurated.
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