CommBank's recent loan data reveals a significant shift among young Australians towards more sustainable vehicles. The first half of this year saw a more than fourfold increase in new car loans for hybrid and Electric Vehicles (EVs) among those aged 18 to 24, compared to the same period last year. Australians aged between 25 and 34 saw the second-largest jump in hybrid and EV new car loans, up 111 per cent, followed by 35-49-year-olds with a 30 per cent increase.

The second-hand market also reflected a similar trend, with used car loans up an average of 52 per cent across the three age groups. The second half of FY24 saw the average price of electric vehicles drop by more than 7 per cent to just over $63,000, compared to the same period last year, according to a CommBank media release.

"During the second half of FY24, the average price of electric vehicles dropped by more than 7 per cent to just over $63,000 when compared to the same period last year," the release stated.

Joel Larsen, CommBank General Manager of Personal Lending, attributes the increase in low emissions vehicle adoption to more manufacturers entering the Australian market and driving down prices. "We are now seeing more and more manufacturers enter the low emissions vehicle market in Australia and this additional supply is really driving down the price point," Larsen said.