Tesla dominates fleet choice for EVs, but lack of electric utes a problem

Tesla’s Model Y continues to dominate the electric vehicle (EV) fleet market in Australia, accounting for 27 per cent of the vehicles in Origin Energy’s leasing and subscription programme. This figure is more than twice that of its closest competitors, the Kia EV5 and Volkswagen ID.4. Despite facing competition from models such as the BYD Sealion 7 in overall sales, the Model Y remains the preferred choice among fleet owners, highlighting Tesla’s strong position in the commercial EV segment. However, the transition to electric fleets is being hampered by a significant gap in the availability of electric utility vehicles (utes). Although utes represent about 22 per cent of new vehicle sales in Australia, there are very few electric options on the market, and those that do exist tend to be more expensive and offer limited driving range compared to their internal combustion engine (ICE) counterparts. Origin Energy’s report notes that only two new electric utes have been introduced in the past year, with the Ford F150 Lightning recently withdrawn from the Australian market, leaving plug-in hybrids like the BYD Shark 6 as the main option for fleet utes. Cost remains the primary factor influencing fleet managers’ decisions to adopt EVs, with total cost of ownership (TCO) needing to be competitive with ICE vehicles for widespread uptake. While emissions reductions are increasingly valued, particularly in carbon-intensive industries such as construction, they are often considered a secondary benefit rather than a primary driver. This shift is partly attributed to Australia’s national emissions targets and growing international pressure on multinational companies to reduce their carbon footprints. The report also highlights the importance of government incentives, particularly the federal fringe benefits tax (FBT) exemption, which applies to take-home vehicles but not pool cars. This has led to a strong preference for EVs that can be taken home by employees, while uptake of pool EVs remains limited due to the lack of financial incentives and challenges around charging infrastructure. Origin Energy has attempted to address these issues by introducing the OneCharge solution, which simplifies public charging by consolidating billing and access across multiple networks, thereby reducing administrative burdens for fleet managers and drivers. Despite these challenges, Origin Energy remains optimistic about the future of fleet electrification in Australia. The company emphasises that driver and fleet manager hesitations can be overcome through flexible trial programmes, data-driven tools, and practical experience with EVs. While passenger vehicle availability is improving steadily, the scarcity of electric utes continues to be a major obstacle, restricting the pace of electrification in a significant segment of the Australian fleet market.