The Electric Vehicle Oversupply: Why Aussie Car Yards Are Flooded With Electric Cars Nobody’s Buying.

Tim Bond
Apr 24
2 min read

Updated: May 27

The Electric Vehicle Oversupply Problem Is Real

Car yards stuffed with unsold electric vehicles. Headlines screaming, “Car yards full of EVs people don’t want.” That’s not hype—it’s the hard truth in 2025. The Australian electric vehicle (EV) market is in a dead-set funk. Sales are down. Dealers are sweating bullets. And the so-called “EV revolution”? It’s hit a brick wall.

Electric Vehicle Oversupply: How Did We Get Here?

Let’s not sugar-coat it. In February 2025, EVs made up just 5.9% of new car sales in Australia. That’s a nosedive from 9.6% last year. Tesla, once the golden child, copped a 43.8% collapse in sales—Model 3 sales alone are down a staggering 81%. It’s not just Tesla. BYD, MG, and other brands are also watching their EVs gather dust. (of course, Tesla has a lot of problems of its own making, but that's another story)

Plug-in hybrids? They’re flying out the door. PHEV sales have exploded by 346%—Aussies want a safety net, not a gamble. The message is clear: buyers are spooked, and they’re voting with their wallets.

Why Are EV Sales Tanking?

Prices are too high. Even with discounts, most EVs are out of reach for the average punter.
Charging is still a joke. The network’s patchy, unreliable, and nowhere near ready for mass adoption.
Too many models, not enough buyers. Every carmaker’s dumping new EVs here to dodge government fines, but there aren’t enough bums for all those seats.
The NVES squeeze. The New Vehicle Efficiency Standard is forcing more low-emission cars onto the market. Dealers are left holding the bag—and the inventory.
Trust issues. Blackouts, grid warnings, and political finger-pointing don’t inspire confidence. People want reliability, not lectures.

The Plug-In Hybrid Surge

While EVs are stuck in neutral, plug-in hybrids and regular hybrids are roaring ahead. Aussies get it: a hybrid gives you the green badge without the range anxiety. You can fill up anywhere, drive as far as you want, and still feel like you’re doing your bit for the planet. That’s why Toyota’s hybrid sales are smashing records, and BYD’s plug-in utes are stealing the show.

More Choice, More Confusion

There’s never been more choice—SUVs, utes, cheap hatchbacks, luxury sedans. The market’s flooded. But instead of excitement, it’s causing confusion. Everyone’s waiting for prices to drop and for the charging network to catch up with Europe and China. Until then, it’s a Mexican standoff: dealers can’t move stock, and buyers aren’t budging.

What Needs to Change?

Drop the prices. If you want cars to move, slash sticker prices. Simple.
Fix the charging network. No more half-baked promises. Build fast, reliable chargers everywhere Aussies actually drive.
Stop dumping and start listening. Don’t just flood the market to hit targets. Give Aussies what they want: affordable, practical, reliable EVs.
Hybrid is king—admit it. The numbers don’t lie. Give people real options, not just green-washed press releases.

Bottom Line: Are We Pushing Too Many EVs, Too Fast?

Yes. The hype is real, but the sales charts are sobering. Until prices drop and chargers pop up everywhere, expect this “electric vehicle oversupply” mess to keep dominating every car blog Down Under. The market’s not ready, and pretending otherwise just leaves dealers with full lots and empty pockets.

Drive Change. Drive Electric