Electric vehicles in Australia 2025: managing the risks
- Electric vehicle (EV) use is continuing to rise in Australia, however, global take up is plateauing.
- A perceived lack of charging infrastructure continues to be a barrier for prospective EV owners.
- With the future of driving veering toward electric vehicles, there are a number of new risks for business and vehicle owners to consider.
Electric vehicle uptake is gradually increasing in Australia, but adoption remains relatively low compared with global trends. In 2024, approximately 110,000 electric vehicles had been sold in Australia,1 adding to the 130,000 already on the road by mid-2023.2
EVs made up 9.5% of all new car sales in 2024, up from 8.4% the year before – a 150% increase in market share compared with 2022.3 But in the broader context, Australia’s EV market share remains much lower than many other countries.4
Globally, EV adoption continues to grow, but the pace has started to ease. According to a report from EY published in September 2024, year-on-year global EV sales growth fell from 37% in 2022 to 29.7% in 2023.5
The report suggests that while interest in EVs remains strong, some of the early sales momentum has been tempered by concerns around affordability, battery longevity and access to charging infrastructure.6
How charging infrastructure and geography impact EV uptake
Countries like Norway and Sweden continue to lead the way on EV adoption, with electric vehicles making up around 78% and 60% of new car sales respectively. In contrast, Australia, the US and Canada all sit below 11% – despite steady growth in recent years.7
One of the biggest barriers is geography. In countries with vast land areas and long distances between major cities, access to reliable charging infrastructure becomes a critical factor.
In Australia, for example, most people drive relatively short distances each day – just 40 kilometres on average, according to the Electric Vehicle Council.8 But despite that, charging remains a major concern for potential buyers. A YouGov survey conducted in 2024 found that 71% of Australians felt charging infrastructure in their local area was inadequate.9
EY’s recent report also highlighted that improving charging access is key to long-term EV success globally:
“More plentiful chargers and a better charging experience are essential to the success of EVs. Substantial investments have been made, but charging infrastructure is still falling short of consumer expectations. Government and industry need to switch to prioritising charging even more highly than incentives on vehicle purchases.” 10
However, Australia’s network is expanding. By mid-2024, there were 1,059 high-power public charging locations nationwide – a 90% increase compared with mid-2023 – and 1,849 individual high-power EV chargers available for public use.11
Electric vehicle risks and how to manage them
As EV use grows in Australia and charging infrastructure expands, new risks are emerging – from battery fires and charger safety to cyber threats and maintenance considerations. These risks are evolving quickly and can carry implications for vehicle owners.
Property fire
One of the key property risks to consider is the potential for fire while vehicles are charging – particularly in enclosed spaces such as underground or multi-storey car parks and garages.
Fires involving lithium-ion batteries tend to be intensive and present unique challenges for firefighters, as they can reignite hours – or even days – after being extinguished.12 Consideration should be given to the possibility of fire spreading to nearby property and the equipment or protocols needed to respond safely.
As EV take-up increases, business premises such as shopping centres, hotels, gyms, hospitals and strata buildings may need to install charging points to accommodate employees, customers and tenants. Charging infrastructure will also be required for commercial vehicles, including distribution fleets, as well as at public transport facilities like train stations and airports.
A fire can have a significant impact on a business. EV Fire Safe, supported by the Australian Government Department of Defence, has developed a range of resources to help businesses identify and manage these risks.
Charger management
Chargers should be installed by a qualified person in compliance with Australian Government Electrical Wiring Rules (AS / NZS 300 Electrical Installations).
Charger theft and vandalism
When installing EV charging points, it’s also important to consider site security. Chargers should be located in safe, well-lit areas to reduce the risk of unauthorised use, vandalism or theft.
Cyber risks
Advancements in vehicle and charging station technology have come a long way in recent years and continue to evolve. As EVs and charging systems rely more heavily on software, data connectivity, and artificial intelligence, their cyber vulnerabilities also increase. For example, EV charging stations can be susceptible to cyber attacks due to unprotected internet connectivity, insufficient authentication and encryption, and a lack of network segmentation.13
Repair costs and safety
Research from 2024 showed that EVs cost around 20% more to repair than internal combustion engine (ICE) vehicles.14
There are also additional safety risks during the repair process due to the way EVs store and manage energy. The Australian Standard for Electric vehicle operations – maintenance and repair contains a safety framework for independent service and repair workshops. It includes requirements for workshop layouts, specialised tools, and protective equipment to ensure technicians can safely and efficiently service EVs.
Vulnerable road users
EVs are much quieter than other vehicles, which can pose risks to vulnerable road users, such as cyclists and pedestrians with vision impairments.15
To address this, the Australian Federal Government introduced new legislation in 2024 mandating the use of Acoustic Vehicle Alerting System (AVAS) for EVs travelling at or below 25 kilometers per hour.16
Driver training
As more businesses explore the introduction of EVs to their fleet, driver training is an important consideration to ensure drivers are familiar with EVs and how to operate them safely.
While a minor incident in a conventional car might not raise alarm, any incident that could lead to battery damage in an EV is a potential fire risk and should be reported and investigated as a priority.
Key areas for EV driver training include:
- Driving efficiency, such as using eco mode where available.
- Speed awareness, as higher speeds can drain more energy.
- Instant acceleration, which can create risk for untrained drivers (EVs have no manual gears).
- Regenerative braking, where the vehicle slows down when pressure is removed from the accelerator (unlike the coasting effect in a conventional vehicle). This can affect stopping distances.
- Anticipating traffic, to reduce unnecessary acceleration and breaking.
Effective driver education can improve driver safety, and lead to more efficient energy use and reduced running costs for businesses.
Related article: How workplace vehicle safety training can save businesses thousands
Managing electric vehicle risks for business
With the new business challenges posed by EVs, it’s important to work with professionals when planning to introduce EVs into a business.
QBE business customers can access a wide range of services, including guidance documents to help manage and mitigate risks.
To find out more, visit our commercial vehicle insurance page, or talk to your broker.
QBE Commercial Motor insurance
Information for EV owners
Keep an eye out for our additional EV articles to stay informed.
Learn about QBE car insurance.
1 Electric Vehicle Council, State of Electric Vehicles report 2024
2 Electric Vehicle Council, State of Electric Vehicles report July 2023
3 Electric Vehicle Council, State of Electric Vehicles report 2024
4 Electric Vehicle Council, State of Electric Vehicles report 2024
5 EY, How to retake the momentum in the EV transition
6 EY, How to retake the momentum in the EV transition
7 Electric Vehicle Council, State of Electric Vehicles report 2024
8 Electric Vehicle Council, State of Electric Vehicles report 2024
9 Switched On, Most Australians think there are too few public charging stations to support EVs
10 EY, How to retake the momentum in the EV transition
11 Electric Vehicle Council, State of Electric Vehicles report 2024
12 UNSW Newsroom, Seven things you need to know about lithium-ion battery safety
13 Southwest Research Institute, SwRI evaluates cybersecurity risks associated with EV fast-charging equipment
14 Car Expert, Figures expose inflated EV repair costs
15 Vision Australia, The impact of electric / hybrid vehicles and bicycles on pedestrians who are blind or have low vision
16 Vision Australia, Vision Australia commends federal government's move to mandate Acoustic Vehicle Alerting System for electric vehicles
