Post by Australian Finance Industry Association

AFIA’s latest industry data shows electric vehicles are defying a weaker motor finance market. New motor vehicle finance data for February 2026 shows electric vehicle (EV) finance surged 48% year‑on‑year, even as overall market conditions weighed on demand, with the value of new vehicles financed nearly 3% lower than 12 months ago amid higher borrowing costs and inflation. AFIA CEO Diane Tate said the latest figures demonstrate that the FBT exemption for EVs is working, as fuel prices and supply dynamics continue to influence consumer behaviour. The message is clear: policy certainty and infrastructure investment remain critical to sustaining EV uptake and consumer confidence. Ahead of the upcoming Federal Budget, Tate noted that hybrid vehicles remain an important part of Australia’s transition and said the Government should seriously consider reinstating the FBT exemption for plug‑in hybrids, alongside maintaining the existing exemption for EVs. Roza L. | Emma Penzo PhD