Three EV challenges facing Australian fleet managers right now

Three challenges shaping Australia’s EV fleet transition

The shift to electric vehicles in Australia is gaining speed, yet fleet managers continue to face practical barriers that can make large-scale adoption complex. While the policy landscape and consumer interest are improving, many organisations are still testing how EVs can fit into their operations in a reliable and cost-effective way. Understanding these challenges can be the first step toward overcoming them.

1. Limited vehicle supply and suitability

Many Fleet managers are increasingly looking to introduce electric models, but vehicle availability for light commercial vehicles remains a constraint. Although supply has improved considerably since 2020, many global manufacturers still prioritise larger markets with stronger emissions regulations, such as Europe, North America, and China ( Fleet EV News, 2025).

According to the Electric Vehicle Council’s State of Electric Vehicles 2024 Report, there are now over 95 plug-in models available in Australia, up from just 31 in 2021. However, some critical vehicle types for fleets—particularly large utes, vans, and heavy-duty trucks—remain limited in local supply (FLEET HV News, 2025; AFMA, 2023).

Volkswagen and several other major automakers began delivering electric models in 2024, including the ID.4 and ID.5, ending a long period of absent offerings (CarExpert). This marks a turning point yet underscores that electrification of commercial fleets will continue at a slower pace than passenger vehicles.

Organisations can prepare by reviewing duty cycles, electrifying roles with predictable routes first, and maintaining close communication with suppliers to secure allocations ahead of time. As production scales, and with policy incentives under the National Electric Vehicle Strategy now in force, availability is expected to further improve across all vehicle classes.

2. Cost and total value

Purchase prices for EVs remain somewhat higher than comparable petrol or diesel models, though the gap is narrowing. Vehicles such as the BYD Dolphin, MG4 and GWM Ora now retail below $40,000 AUD, bringing true affordability to many fleet categories (Drive.com.au).

Total cost of ownership (TCO) remains critical. Lower energy costs, reduced servicing needs and exemptions—such as the Fringe Benefits Tax discount for eligible EVs—help offset price differentials over a vehicle's life (Fleet EV News, 2024).

Battery pack prices continue to fall, with Bloomberg NEF and local analysts estimating levels around $145 AUD per kWh in 2024 and forecast to drop below $120 AUD by 2026 (Cyanergy). Most experts expect price parity for new light vehicles before 2030 (AEMO Projections, 2024, PDF).

Fleets can model real-world savings across energy, maintenance, and resale via data-backed TCO analysis. This supports smart, evidence-based fleet investment.

3. Charging and infrastructure planning

Charging access and infrastructure costs are major considerations for Australian fleets. In a recent AFMA survey, 38% of fleet managers cited depot charging infrastructure as their core operational barrier (AFMA, 2023).

Public fast-charging coverage has grown significantly. As of mid-2025, Australia boasts over 3,000 public fast-charging sites, up from fewer than 800 in 2021 (ARENA EV charging data).

Most fleet vehicles still charge primarily at depots or drivers’ homes, reducing reliance on public sites and improving operational reliability (Electric Loans, 2025). For driver-assigned vehicles, home charging with automated reimbursement is cost-effective; pooled vehicles benefit most from depot chargers. Each solution demands attention to installation safety, energy management, and grid capacity.

Digital fleet management tools can monitor EV charging, track energy use and emissions in real-time. These systems support accurate budgeting and sustainability reporting, ensuring compliance with ESG goals (Fleet HV News, 2025).

Looking ahead

EV adoption in Australian fleets is accelerating, with supply expanding, costs declining, and charging networks maturing every year. The key for organisations is to plan practically, start where the benefits are clearest, and build expertise over time.

For deeper insights or practical transition planning assistance, explore Interleasing’s resources in our Fleet Insights.

Interleasing supports organisations through every stage of this process with data insights, financing solutions and practical EV transition planning. To explore how your organisation can begin or accelerate its EV journey, download A roadmap for the transition to EVs