The Tesla Model Y may well be facing a major challenge from the BYD Sealion 7 when it comes to its ranking of best-selling EVs in Australia, but it remains the dominant choice when it comes to fleet owners.

A new report from Origin Energy, the country’s biggest electricity retailer, notes that 27 per cent of the EVs in its leasing and subscription program are Tesla Model Y electric SUVs, more than double the next most popular electric cars, the Kia EV5 and the VW ID.4.

The data is included in a “lessons learned” report delivered as part of the obligations of Origin’s Fleet Electrification program that has been partly funded by the Australian Renewable Energy Agency.

The program aims to deliver 1,000 EVs to the fleet program, but Origin says the transition has been hindered by the lack of good electric ute options.

“Passenger vehicle choice is no longer a barrier for most take-home fleets,” Origin writes.”

“Utes are a different story. Despite making up around 22% of new vehicle sales, there’s limited EV ute options, and those that are available cost more than the ICE equivalent and have limited range.”

And it notes that only two new electric utes have entered the Australian market over the past year. (And one electric ute, the Ford F150 Lightning, is no longer available).

As a result, just 5.2 per cent of Origin’s lease and subscription sales over the reporting period were utes – and all of these were the BYD Shark 6 plug-in hybrids.

Origin says that for most fleet managers, the decision to go electric comes down to cost, and if the total cost of ownership (TCO) isn’t lower than an equivalent ICE vehicle, “it halts most decisions – any emissions benefit is a bonus, not a driver.”

Still, Origin says it is starting to see a shift. “A small but growing number of customers, particularly in carbon-intensive industries like construction, are now treating emissions reduction as equally important as cost when making fleet decisions.”

That it says is being driven by a couple of factors, including Australia’s own efforts to reduce emissions and by pressure from overseas, particularly on the Australian divisions of companies that operate internationally.

The other major observation from Origin was on the clear preference on “take-home” vehicles, given that these qualify for the federal government’s FBT exemptions, while pool cars do not.

“The sales Origin is making are almost entirely concentrated where customers can access the FBT exemption,” it says, adding that charger funding by ARENA has not been sufficient to close the TCO (total cost of ownership) gap on pool vehicles.

That said, the issues around home charging also needed to be resolved, including developing systems that allowed employees to have their home charging costs covered by their employer, in much the same way as occurs with fuel cards.

“Managing public charging remains an admin burden for fleet managers and drivers – multiple apps, cards and expense claims across different networks,” it notes.

“Origin’s had strong uptake on it’s OneCharge solution that helps solve this, by centralising charger activation and billing across six of the major public charging networks, and aggregating costs onto the fleet bill.”

It concludes: “Driver and fleet manager hesitation is real, but manageable – flexible trials, data-driven suitability tools, and hands-on experience all play a role in converting interest into commitment.

“Vehicle availability is improving for passenger fleets, but the ute segment remains a significant gap that limits electrification for a large portion of the Australian fleet market.”

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FORD Motor Company CEO Jim Farley says the next generation of battery technology will be crucial for electric utes to become viable for mainstream buyers, warning that current battery-electric vehicles struggle to meet the demands of towing and heavy-duty work. 

 

His comments came during an Australian visit and come months after Ford’s multi-billion-dollar about-face on BEVs, which saw it shelve the all-electric F-150 Lightning pick-up truck and divert investment towards hybrids and extended range electrified models. 

 

Mr Farley said battery electric pick-ups remain a long way from replacing conventional work vehicles unless major advances are made in battery chemistry. 

 

“A pure EV with a large battery is going to be a really bad tow-er. So, if you tow things, the heavier they are, the worse it is, you should not buy a BEV,” he warned. 

 

Mr Farley said the viability of electric utes will rely on the next-generation battery chemistry and that although improvements in battery technology are inevitable, he warned that the timeline remains uncertain. 

 

“I think solid-state has been part of my future like fuel cells have been for my whole life,” he said. 

 

“Everyone’s like ‘well, it’s gonna happen sometime’ … I mean, I don’t see that yet.” 

 

The Ford chief said limitations of current battery technology remain a major barrier for vehicles expected to tow heavy loads or travel long distances in remote areas. 

 

His comments suggest battery-electric utes are unlikely to play a major role in Ford’s near-term product plans, despite growing industry momentum toward electrification. 

 

Instead, Mr Farley believes extended-range electric vehicles (EREVs) – which combine electric drive with a petrol engine acting as a generator – will offer a more practical solution in the short to medium term. 

 

Ford is already heavily involved in electrification, having launched the battery-electric F-150 Lightning in North America as an electric version of the world’s best-selling pick-up. 

 

However, the model struggled to gain traction and production recently ceased as part of a $US19.5 billion writedown of various electric models. 

 

The company has since shifted greater attention towards hybrid and EREV powertrains for its future truck programs. 

 

Mr Farley said Ford’s experience with partially electrified vehicles is helping the company understand how customers use vehicles such as utes in the real world. 

 

“We’re starting to really understand the duty cycle,” he said. 

 

“How big the battery should be and how much the customer is willing to pay for a bigger battery?” 

 

The passionate Ford chief added that electrified work vehicles may ultimately serve purposes beyond transportation, potentially acting as mobile power sources. 

 

“We haven’t really understood yet how much battery should carry for the vehicle for non-transportation use,” he said, referring to a vehicle-to-load system Ford calls Pro Power Onboard and is a feature of the plug-in hybrid Ranger that went on sale locally in 2025. 

 

It enables owners to power everyday tools and appliances from the vehicle utilising energy in the high-voltage traction battery. 

 

Mr Farley’s comments contrast with some competitors that are already moving ahead with battery-electric utes. 

 

Toyota plans to introduce a battery-electric version of the HiLux later this year, although an expected short driving range means initial versions will target mining fleets and other commercial operators rather than private buyers. 

 

Chinese manufacturers are also aggressively pushing into the segment. 

 

Brands such as BYD and GWM have already launched electrified pick-ups in Australia, while South Korean brand KGM (formerly SsangYong) has a battery electric ute with the Musso EV, although this is a monocoque SUV-based model rather than a body-on-frame four-wheel drive like its diesel namesake. 

 

Mr Farley believes traditional truck manufacturers still have an advantage when it comes to understanding real-world work requirements. 

 

Ford’s Ranger and Everest programs – both developed largely by the company’s Australian engineering team – sit at the core of its global commercial vehicle strategy. 

 

“When it comes to real world work vehicles and off-road vehicles, they are a long way from being competitive yet,” he said, referring to Chinese manufacturers. 

 

While battery-electric utes may eventually become viable, Mr Farley suggested the industry’s focus in the near term will remain on hybrid and extended-range electrified solutions.