Low-Interest Financing Initiative Aims to Drive EV Adoption in Australia
The Commonwealth Bank of Australia (CBA) has announced an exciting partnership with Tesla, aiming to encourage the adoption of electric vehicles (EVs) in Australia by offering low-interest financing options. This collaboration provides potential EV buyers with direct access to CBA loan options via Tesla’s website, featuring fixed interest rates as low as 5.49 percent per annum.
CBA’s commitment to sustainability is reflected in this initiative, as the reduced interest rates are specifically available to eligible customers who choose to finance sustainable products, including electric vehicles and hybrids.
Joel Larsen, CBA’s General Manager of Personal Lending, expressed enthusiasm about the partnership, stating, “Tesla has proven to be one of the preeminent and hallmark brands that has propelled the awareness and uptake of EV adoption in Australia. Through this latest announcement, we can help more customers realize the benefits of electric vehicles by making finance more affordable.”
CBA’s press release highlights the bank’s substantial involvement in financing personal loans for sustainable products, with over A$50 million ($32.3 million) financed since October 2022. As Australia’s largest lender, CBA’s recent record profits amid rising interest rates underscore its commitment to supporting initiatives that drive sustainability and innovation.
Data from CBA reveals a growing interest in EV adoption among businesses, with 40 percent of companies expressing intent to incorporate EVs or hybrids into their fleets within the next six months to a year. This figure represents a significant jump from the current adoption rate of 14.7 percent. Furthermore, CBA anticipates that this trend could double once again after next year.
The bank also notes that 64 percent of its customers would consider purchasing an EV or hybrid if financial incentives were available. Chris Moldrich, General Manager Asset Finance at CBA, emphasized the rapid acceleration of EV adoption trends in the business sector, driven by affordability, government incentives, and an expanding range of EV options.
“EV usage is surging as the market matures and becomes more affordable. That’s being helped by government concessions and an expanding choice of vehicles beyond luxury models,” Moldrich said. “Being a preferred finance provider for Tesla means we can provide faster and simpler ways for Australian businesses to access EVs, allowing our customers to improve efficiencies and deliver greater value to their own customers.”
This partnership arrives on the heels of Tesla’s recent launch of the Model 3 Highland in Australia and other markets, offering a redesigned version of the popular electric sedan. It also follows Tesla’s introduction of longer financing terms for U.S. buyers, further illustrating the company’s commitment to expanding EV accessibility.