Global EV Numbers Break 20 Million — Is Now the Time to Lease?
EVs now top 20 million globally and could hit 1-in-3 new car sales within a year. Here's what the shift means for Australian novated lease buyers.
Global electric vehicle numbers have surged past 20 million, according to The Driven, with analysts predicting EVs could account for nearly one in three new cars sold worldwide within a year. The driver? Global oil supply pressure is pushing more motorists toward electric — not just environmental conviction, but hard-nosed running-cost logic.
This isn't a niche trend anymore. Even with a slowdown in traditionally dominant markets, the overall trajectory is firmly upward. For Australian PAYG employees considering a novated lease, the timing question is becoming less "should I go electric?" and more "why haven't I already?"
What this means for novated lease customers
A novated lease already makes sense on a combustion vehicle. On an EV, the tax treatment can stack up even more favourably. Under current Australian FBT law, eligible electric vehicles accessed through a novated lease are exempt from fringe benefits tax — a concession that doesn't exist if you simply buy the same car outright.
As global EV supply chains mature and production volumes grow past 20 million units Source: The Driven, vehicle availability in Australia is improving and list prices on many models are gradually softening. More choice at more price points means the FBT-exempt EV novated lease is no longer limited to premium models — it's becoming a mainstream option.
Running costs are the other side of the equation. Lower fuel spend, cheaper servicing, and potential savings on registration in some states all factor into the total cost of ownership. A novated lease bundles these costs into pre-tax salary deductions, which can compound the overall benefit for a PAYG employee. We're not going to throw a dollar figure at you — use a real calculator and model your own situation — but the structural advantage is genuine.
Common questions
Does the EV FBT exemption still apply in 2026?
As of the date of this page, eligible battery electric vehicles provided through a novated lease remain exempt from fringe benefits tax under Australian law. You should confirm the current status with a licensed adviser or check the ATO website directly, as legislation can change.
Do I get more choice now that global EV production is above 20 million?
Generally yes. Higher global production volumes tend to improve local availability and moderate pricing over time. More models now sit within FBT-exempt price thresholds than did two years ago.
Is a novated lease the only way to access the EV FBT exemption?
The FBT exemption applies to cars provided as an employee benefit — a novated lease is the most common structure for PAYG employees to access this. Outright private purchase doesn't attract the same tax treatment.
What if I'm not sure which EV model to pick?
millarX can quote across a wide range of eligible models. The right vehicle depends on your driving pattern, salary, and how long you want the lease — not on which car happens to be on a dealer lot this week.
Does the global EV slowdown in some markets affect Australia?
The slowdown noted in The Driven report is concentrated in specific large markets. Australian EV policy settings — particularly the FBT exemption — create a local incentive structure that operates independently of overseas retail trends.