A report by the Gumtree Group says that despite rising global momentum toward full electrification, Australia is remaining a transitional market where hybrids dominate growth and EV adoption remains measured.

‘The Influence Engine’ report says that more than half of new-car intenders now consider hybrids, making them the fastest-growing category in propulsion preference.

This insight comes in the latest survey by Gumtree Group – encompassing CarsGuide, Gumtree Cars and Autotrader – which has released its comprehensive report that shows a changing new-car market that is moving away from tradition.

The survey also looked at alternate powertrains and the consumer choice between internal-combustion engines (ICE) and electric vehicles (EV) and the blending of both. The report said that the desire for hybrid over EVs reflects a strong desire for lower running costs, environmental benefit, and technological advancement combined with an equally strong need for convenience and familiarity.

“EV interest is growing but remains moderate relative to global benchmarks. Around one in three intenders consider a fully electric vehicle, but major barriers persist. 

“These include high upfront cost, range anxiety, and infrastructure inconsistency, particularly between metropolitan and regional areas that continue to constrain widespread adoption. 

“Australians remain cautious pragmatists and want reassurance that EV technology fits their lifestyle before committing.”

The Gumtree report also said that the introduction of the new vehicle efficiency standard (NVES) marked a significant shift in policy direction.

It said that over the next five years, it will accelerate the availability of low-emission and zero-emission models and put structural pressure on OEM fleets.

“However, it will not instantly transform market demand,” it said.

“Instead, hybrid vehicles, plug-in hybrids, and lower-emission ICE models will serve as the stepping stones to a mature EV market in the 2030s.” 

The report said that globally, the future of powertrains will be shaped by:

1. Software-defined vehicle (SDV): Architectures that enhance range, efficiency, and user experience through over-the-air updates.

2. Solid-state battery development, expected to materially change range and charging speeds mid-decade.

3. Charging interoperability, as governments push for standardised networks.

4. Second-hand EV market expansion, which will reduce the affordability barrier. 

“In Australia, these developments will intersect with unique domestic realities of long driving distances, urban-regional infrastructure gaps, and climate considerations to shape a slower but steady progression toward electrified mobility,” the report said.

“Australians are willing to embrace sustainability if it aligns with convenience and cost.

“The near-term opportunity lies in hybrid and plug-in hybrid models that balance eco-benefits with usability.

“For OEMs, messaging must pivot from technology evangelism to lifestyle relevance showing how alternate powertrains fit seamlessly into Australian driving realities.”

In the future, the Gumtree report said, evolution will lead to a rise of software-defined vehicles that feature over-the-air updates, connected ecosystems, subscription features, and app-driven functionality.

These will begin to outweigh traditional engineering as differentiators. “The transformation of dealership models will see a shift from inventory-led sales environments to experience centres focused on validation, test drives, and delivery,” it said.

“Online targeting supported by AI, configurators, and real-time stock data will define early purchase behaviours. 

“The consumer demand for radical transparency will mean buyers will expect clear pricing, honest timelines, available stock, and unambiguous information about ownership costs. 

“Any lack of clarity increases the likelihood that consumers will switch brands.

“Increased OEM competition and margin pressure will compress price competition, especially in the EV segment. 

“Traditional OEMs will need to rethink pricing models, incentives, and digital experience quality.

“The acceleration of digital trust-building brands that articulate how data, AI and digital tools operate and why they are safe and unbiased will gain disproportionate consumer trust.”

The report said that Australia’s automotive market was entering a defining decade. 

“Consumers are more open-minded, digitally empowered, and value-conscious than ever before,” it said.

“They explore widely, choose quickly, and expect seamless experiences across online and offline touchpoints. 

“Trust remains the central currency: Trust in the brand, trust in the technology, trust in the information ecosystem, and trust in the ownership experience. 

“OEMs that recognise these dynamics and respond with transparency, agility, and meaningful digital transformation will lead the next era of mobility.”