Global EV Sales Top 20 Million — Is Now the Time to Novate?
Global EV numbers have surged past 20 million despite market slowdowns. Here's what the shift means for Australian novated lease customers considering an EV.
Global electric vehicle numbers have surged past 20 million on the road, even as some of the world's biggest car markets — think China and Europe — show signs of a slowdown. According to The Driven, rising global oil shortages are pushing more motorists toward EVs, with analysts predicting electric cars could account for nearly one in three new vehicle sales worldwide within the next 12 months.
That's a big number. And it's not happening because people have suddenly gone green — it's happening because running an EV is becoming cheaper than running a petrol car. Fuel cost is the story here, not idealism.
What this means for novated lease customers
If you're an Australian PAYG employee sitting on the fence about an EV novated lease, the global trend is worth paying attention to — for a few practical reasons.
First, supply. As global EV production scales to meet demand, more models are landing in Australia at more competitive prices. More choice at the entry level means the EV you actually want is more likely to be available and deliverable within a reasonable timeframe.
Second, the Australian tax settings haven't changed. Eligible battery electric vehicles under the luxury car tax threshold remain exempt from fringe benefits tax (FBT) under the current legislation — meaning a novated lease on a qualifying EV still carries a structural tax advantage over the equivalent petrol vehicle. The FBT exemption applies to the vehicle's running costs as well as the finance component, so the potential savings compound over the lease term. Combine that with lower day-to-day fuel and servicing costs — which the global data keeps reinforcing — and the numbers tend to make a compelling case.
None of this means an EV novated lease is automatically right for everyone. Your salary, your employer's participation, and how you actually use the car all matter. But the external tailwinds are as strong as they've been.
Common questions
Does the FBT exemption still apply to EVs in 2026?
As of the latest available guidance, eligible battery electric vehicles under the luxury car tax threshold remain exempt from FBT when provided through a novated lease. You should confirm current thresholds with a licensed adviser — rules can change, and your specific vehicle and salary situation matters.
Will more global EV supply actually lower prices in Australia?
Generally, yes — increased global production tends to flow through to local dealer pricing and availability over time. More competition among manufacturers also tends to push features up and entry prices down, though currency movements and local import costs can affect the timing.
Are EVs actually cheaper to run than petrol cars?
For most Australian drivers, the per-kilometre fuel cost of charging an EV at home is significantly lower than petrol. Servicing costs are also typically lower given fewer moving parts. The global data cited by The Driven reinforces this trend — though your actual savings depend on your driving habits and electricity tariff.
What if I want an EV but my employer hasn't done novated leasing before?
Employers don't need a pre-existing novated lease program to get started. millarX works directly with employers to set up the arrangement. It's worth raising with your HR or payroll team — the setup is generally straightforward.
Is the global slowdown in EV sales something to worry about?
The slowdown is concentrated in specific markets and largely reflects policy changes and temporary demand saturation at the premium end. Overall global volumes are still growing — crossing 20 million on-road vehicles is a milestone, not a ceiling.