How much does it cost to run an electric car?

There are two different categories of electric vehicles on the market at the moment. The first is fully electric vehicles (EVs) that run solely on an electric battery that you recharge by plugging into a charging station either at your home or when travelling.

The other category is hybrid electric models. Hybrids combine a traditional combustion engine with an electric motor that is either charged through running the engine and regenerative braking, or by plugging into a charging station—in the case of plug-in hybrid electric vehicles (PHEV).

In this article, we’ll be looking at electric car monthly costs for fully electric cars (EVs) specifically.

Obviously the running costs will vary depending on the make and model of the electric car—such as a small hatchback compared to a larger model with more battery range. The costs may also vary depending on which state or territory you register the vehicle and how it is used (e.g. minor suburban driving versus interstate road trips).

The biggest cost is generally the price of the electric car itself, however prices continue to drop as competition between car manufacturers grows. Carsguide, a car review, news and advice publisher, suggests that several EV models have reached price parity with similar hybrid and conventional petrol models.

That being said, fully electric cars only accounted for 4.4% of total new vehicle sales for the month of January 2025, according to the Federal Chamber of Automotive Industries (FCAI)—the lowest figure since October 2022. On the other hand, purchases of hybrid and plug-in hybrid electric vehicles continued to grow and now make up about one fifth of new vehicle sales. Overall 91,292 electric cars were sold in 2024, according to data published by the FCAI and the Electric Vehicle Council (EVC).

What are the best selling electric cars in Australia?

Tesla continues to be the market leader, with the Model Y and Model 3 being the two highest selling electric car models for 2024 by a fair margin. The following are the top 10 highest selling electric cars as reported by the automotive news and review site Drive.

New electric car sales in Australia 2024

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Source: Drive.com.au – 07/03/25

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How much does an electric car cost in Australia?

The Electric Vehicle Council lists 60 fully electric passenger vehicles currently available in the country at the time of writing. Their prices can generally range from about $40,000 to $200,000 according to the finance lender, Plenti. That being said, there is an influx of cheaper electric models coming into the Australian market—mainly from Chinese car manufacturers—like the essential version of the BYD Dolphin, which is priced from $29,990 before on-road cost. Other notable models include the GWM Ora and MG4 Excite 51, which are priced at $33,990 and $34,990 (drive-away) respectively.

Those interested in the brand name and popularity of Tesla would be looking at $54,900 for a Model 3 and $55,900 for a Model Y in 2025. Once you move to the more expensive models, like BMW, Lexus or Porsche, you may incur an additional cost from the luxury car tax. This is charged at 33% on the amount above the luxury car threshold at the time of writing. That threshold for fuel-efficient vehicles is higher than for other vehicles, which the Australian Taxation Office (ATO) suggests should cover most electric cars, but may not cover all hybrids.

What are the running costs of an electric car?

Fuel efficiency is usually the first thing discussed when considering a car’s running costs. Canstar Blue has put together an estimate which shows how the fuel cost of petrol cars compares to the electricity cost of EVs. The EVC suggests the average Australian drives about 12,000km per year and spends about $2,500 on petrol—if they drive a petrol car. This equates to a cost of around $0.20 per kilometre. An EV travelling the same distance per year would only cost around $500 a year to charge (using grid electricity), equating to about $0.04 per kilometre. While this is a general example, it does show a large discrepancy between the fuel costs of running an electric car versus those associated with petrol cars.

For a more comprehensive look at electric car running costs, the Royal Automobile Club of Queensland (RACQ)’s annual Vehicle Operating Cost Report covers specific car models and their potential ongoing costs like car loan repayments, fuel, tyres, servicing, car insurance and government charges.

The MG4 Excite 51 EV was found to be one of the cheapest electric vehicles to run, with monthly costs of about $1,148.48, according to the report.

There were 19 electric cars (excluding hybrids) in the survey which looked at a total of 87 popular cars on the market. Here’s how the other electric cars stacked up for monthly running costs.

Electric car monthly cost

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Source: RACQ 2024 Annual Vehicle Operating Cost Report.

RACQ’s Principal Technical Researcher, Andrew Kirk, told Canstar that once you factor out the initial purchase cost and remove any ongoing loan repayments then running an electric car was much cheaper than a combustion engine car.

For example, he estimated the cost of a full charge on a typical 60 kWh battery on an electric car would be about $48.60 at a Tesla Supercharger station for a non-Tesla vehicle, based on current maximum prices. Other charging companies would offer a more competitive rate of around $42 for the same charge. Compare that to the $108 it would cost to fill a 60-litre petrol tank of a typical family car with Unleaded 91 at hypothetical pricing of $1.80 a litre.

Actual comparison costs are always subject to change and depend on how a vehicle is driven, the cost of fuel and charging and what range you get from a full charge compared to a full tank.

That said, the EVC estimates an average electric car can save its owner $3,000 on fuel and maintenance costs each year. The cost of charging an electric car can also be reduced if you do it at home, and even better if you have solar panels. You could even charge the car battery overnight if you had batteries that stored the solar generated power. Canstar Blue also compares electricity plans that may be available to customers who charge their electric cars at home.

How much does car insurance cost for electric cars?

Car insurance premiums for an electric car may be more expensive, especially if you have an expensive model with replacement parts that are more difficult to source. Other factors such as the current lack of electric vehicle service centres and qualified EV repairers may also impact this cost, but it is also likely to become less of an issue as EV ownership increases.

If you’re looking to lower your car insurance premiums, generally you’ll face the same challenges as would with any other car. Things like buying online, driving safely or less often and comparing car insurance providers and their policies can all potentially help you save on premiums.

We compared insurance quotes from a number of providers for the Hyundai Kona Premium N-Line Wagon, both the electric and petrol models.

With standardised assumption details and a target car insurance excess of $1,000 (actual excesses ranged from $950 to $1,000), we found that comprehensive car insurance for the petrol model was, on average, 24% cheaper than the electric alternative.

Canstar Research said the higher premiums for the electric car were likely largely due to its higher purchase price compared to the petrol engine car.

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How much does registration cost for electric cars?

When it comes to registering an electric car, the price will vary across different states and territories. Some offer discounts and incentives, such as in New South Wales (NSW) where the state government lists a number of electric cars eligible for a motor vehicle tax concession.

It’s a good idea to check with your local state or territory government first if you’re considering buying an electric car. The discounts and incentives can change depending on which political party is in power and the strategy they take towards encouraging more electric vehicles on roads. The following links can be a useful starting point.

• Australian Capital Territory: Zero emissions vehicles strategy

• New South Wales: Electric vehicle strategy

• Northern Territory: Electric vehicle strategy

• Queensland: Zero emission vehicle strategy

• South Australia: Electric vehicles

• Tasmania: Electric vehicles

• Victoria: Zero emissions vehicles

• Western Australia: Transitioning to electric vehicles

How much does servicing cost for electric cars?

All cars should be serviced on a regular basis to keep them in good running order, and electric cars are no different.

Servicing an electric vehicle’s battery and electric motor is usually cheaper than servicing a combustion engine, due to them having less moving parts such as exhausts and oil filters. But there are still other components that are checked as part of regular servicing, such as wheels, tyres and brakes. Electric cars also tend to be heavier due to the battery, which could lead to increased wear and tear on the tyres.

It’s a good idea to talk to the car dealer about potential servicing costs for any electric car you’re considering, and see if they offer fixed or capped-price servicing and what warranties are available, especially on the battery.

Electric vs combustion: how to compare your own costs

To get your own estimate on how much it costs to run a typical electric sedan car, hatchback, SUV and van compared to a combustion model equivalent, you could use NRMA’s Compare costs: Fuel vs electric cars calculator. This allows you to enter specific makes and models of vehicles and details like the distance you travel each year to help you compare the fuel related costs of certain petrol and electric vehicles. Generally, electric vehicles will cost less to charge than combustion engine vehicles will to refuel.

While the calculator may only give you an estimate in regards to fuel costs, there are a few other factors that should be considered when comparing electric and combustion engine vehicles:

• Sale price: Although affordable options for EVs are coming into the market, combustion engine vehicles generally remain more affordable and in steady supply (especially in the used car market).

• Car insurance cost: Due to their cost to buy and the current limited supply of EV focused service centres and repairers, car insurance is generally more expensive for electric vehicles than for petrol equivalents.

• Infrastructure: While savings can be made from charging your EV at home, you may need to install your own charging station at your residence. This will ultimately depend on the make of car you buy, as some require specific charging cables to recharge the car’s battery.

• Servicing cost: Having less moving parts means that EVs are generally cheaper to service when compared to cars with combustion engines. However, not all mechanics are qualified to service EVs, so this is something worth considering. Car dealers may offer capped-price servicing for your new EV at an affiliated service centre, which may solve this problem and could potentially be beneficial.

• How you plan to use the vehicle: When it comes to EVs, the battery’s range is often an important selling point. While battery ranges continue to increase with technology, an EV may not be suitable for a person who takes many long haul road trips, especially if there isn’t charging station infrastructure available along the way. If you mainly drive around the suburbs, then an EV may be beneficial, especially when it comes to the savings when compared to a petrol or diesel vehicle.

The future of electric cars

Electric cars are here to stay and should get more affordable as their popularity grows. A number of traditional combustion engine car manufacturers are also switching over to concentrate solely on electric vehicles. The Royal Automobile Club of Victoria (RACV) lists at least 20 manufacturers including Ford and General Motors who have made this commitment.

A number of countries have also pledged to phase out combustion engine models, including the United Kingdom, Sweden, India, Sri Lanka and Germany. Australia is yet to make such a commitment, however, the Federal Government does have a National Electric Vehicle Strategy which includes a commitment to invest in public electric vehicle charging infrastructure. The strategy also aims to increase the supply of affordable and accessible EVs and encourage the increased EV demand, in an effort to reduce emissions and improve the wellbeing of Australians.

Previously, the Victorian state government charged EV motorists a fee in lieu of the Commonwealth fuel excise, but it was overturned by the High Court of Australia. The Australian Automobile Association (AAA), the nation’s peak motoring body, says that this fuel excise helps contribute to developing transport infrastructure, not already looked after by the states and territories. EV drivers currently do not contribute towards this fuel excise, as they do not need to buy petroleum products. It’s unlikely other states and territories would follow Victoria in trying to recoup any reduction in the amount earned from the fuel excise, especially given the High Court’s decision.

Mr. Kirk suggests that “once we lose all those petrol vehicles off the road then that’s a huge amount of income that’s got to come from somewhere.”

“What the RACQ is after is a nationwide regulation and tax reform right across the board to get rid of any mismatch approach.”

So when it comes to the question of what is the actual running cost of an electric car, the answer can vary widely. It will ultimately depend on the car you choose and can afford to buy, where you live and register the vehicle, how you insure it, how you drive and charge it, and the political strategies adopted by various governments and administrations—all of which could impact your choice.

It’s important to remember, however, that the technology will continue to change and will more than likely bring down the costs to make and run electric cars, offering more affordable options for Australians.

Cover image source: Halfpoint/Shutterstock.com