What does the EU ban on petrol cars mean for Australians?

By Maria Gil · · 2 min read
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The European Union has announced a ban on petrol cars by 2035, but what does that mean for Aussie drivers?

For starters, Australia has an import-only car market, meaning we don’t manufacture them locally. So we rely on new models from global car manufacturers, many of them from Europe such as BMW and Volvo. Of course most companies now build their cars in a range of locations around the world and distribution has become easier as a result.

But with the EU’s ban on petrol cars to promote electric vehicles (EVs), chances are new types of vehicles will emerge and we’ll see an increase in EV imports and sales here.

In fact we’ve already begun to see increases in EV demand as Aussies have become more environmentally conscious. New data from the Electric Vehicle Council (EVC) reported that 2022 saw registered electric cars almost double from 44,000 to 83,000, for example. 

EVC's chief executive officer, Behyad Jafari says the current EV supply in Australia doesn’t meet demand though. For now, he expects Australia will have more than 100,000 electric cars on the road in 2023.

Will EVs become more accessible?

With the banning of new petrol car productions by 2035, the EU hopes to push manufacturers to innovate, push down the price of EVs and make it more affordable for the average consumer. 

Right now, new electric vehicle prices range from around $45,000 to $200,000, with the average price at $88,000. So buyers are paying premium prices for the environmentally friendly option - meaning they’re not so accessible. And unfortunately, a second hand EV market doesn’t exist yet in the same way as it does for petrol cars. 

But we might see EV prices fall in Australia soon and a quicker emergence of a secondhand market if that happens.

How to buy an electric vehicle 

If you want to snag an EV for yourself, you’ll likely need to finance it. Thankfully, several green car loans are available in Australia to aid your eco-friendly purchase. 

Take a look at Mozo’s best car loans to see some standouts. Meanwhile, get the low-down on ways to go green with our green finance hub.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 91 car loans using the filters.
Last updated 5 December 2025 Important disclosures and comparison rate warning*

Car loan comparisons on Mozo

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    Low variable car loan rate for purchasing new and demo vehicles from dealers. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. Good credit history. Stable employment history and Australian citizenship or PR required.

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    5.66 % p.a.
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    Based on $30,000 over 5 years
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    Monthly repayment
    $608
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* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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