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Australian New Vehicle Market Shows Shifting Trends Toward Electrified Models Through Early 2026

Generated on: Last updated: 13 sources
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The Australian new vehicle market has experienced a period of transition through 2025 and into early 2026, characterized by record sales of electrified vehicles, a steady decline in traditional petrol and diesel sales, and the emergence of China as a leading source of new vehicles.

While overall market growth was marginal in 2025, the first quarter of 2026 saw accelerated adoption of battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and conventional hybrids, with Tesla and BYD competing for market leadership. Industry observers have noted multiple factors contributing to this shift, including fuel price volatility, government policy, and changing consumer preferences.

Overall Market Performance

2025 Full-Year Results

Australia's new vehicle market recorded 1,241,037 deliveries in 2025, a 0.3% increase from 1,237,287 units in 2024, marking the third consecutive year of growth. This occurred alongside a 1.5% population increase over the same period.

Early 2026 Data

  • February 2026: 94,131 new vehicles delivered, a 2.7% decrease compared to February 2025.
  • March 2026: Total sales figures showed a historic milestone: combined sales of hybrid, plug-in hybrid, and electric vehicles (42,007 units) surpassed petrol-powered car sales (34,694 units) for the first time. Diesel vehicles totaled 28,364 units.

Fuel Type and Electrified Vehicle Sales

2025 Annual Data

Fuel Type 2025 Sales Year-on-Year Change Conventional Hybrids 199,133 +15.3% Battery Electric Vehicles (BEVs) 103,269 +13.1% Plug-in Hybrids (PHEVs) 53,484 +130.9%

BEVs constituted 8.3% of all new vehicle deliveries in 2025, up from 7.4% in 2024.

2026 Monthly and Quarterly Data

"March 2026: BEVs sold 15,839 units, capturing a record 14.5% market share."

March 2026:

  • BEVs: 15,839 units sold, representing a record 14.5% market share (up from 7.5% in March 2025).
  • PHEVs: 8,215 units sold, up from over 5,000 in February 2026.
  • Combined electrified vehicles (hybrids, PHEVs, BEVs): accounted for approximately 40% of all new-car sales.

First Quarter 2026 (January-March):

  • Total BEV sales: 34,382 units (FCAI/EVC reported), approximately double the same period in 2025.
  • Monthly BEV breakdown: January 7,409 units; February 11,134 units; March 15,839 units.
  • Combined hybrid+PHEV+BEV sales showed consistent growth compared to the same months in 2025.

Year-on-Year Growth (Selected Months):

  • January 2026: BEV sales up 93.3%; PHEV sales up 170.5% compared to January 2025.
  • February 2026: BEV sales up 95.9%.
  • March 2026: BEV sales up 88.9% year-on-year.

Fuel Type Trends (Excluding Heavy Commercial) - May 2025

Fuel Type Sales Volume Petrol 28,692 units Diesel 25,191 units Electric 21,303 units Hybrid 19,024 units PHEV 9,315 units

Brand Performance

Top-Selling Brands - 2025 (Full Year)

Brand Deliveries Year-on-Year Change Toyota 239,863 -0.6% Ford 94,399 -5.8% Mazda 91,923 -4.2% Kia 82,105 +0.4% Hyundai 77,208 +7.7% Mitsubishi 61,198 -17.9% GWM 52,809 +23.4% BYD 52,415 +156.2% Isuzu Ute 42,297 -12.2% MG 41,298 -18.4%

BYD entered the top 10 for the first time in 2025. Nissan dropped to 12th position with a 21.6% decline.

Top-Selling Brands - February 2026

Brand Performance Toyota Market leader despite 27.8% decrease Mazda Deliveries down 19.9% Ford Sales up 9.0% Kia Sales flat Hyundai Deliveries up 4.5% BYD Ranked sixth; deliveries up 62.2% Mitsubishi Down 22.3% GWM Up 24.9% Chery Up 93.2% Isuzu Ute Up 23.7% Tesla Deliveries up 105.7% Nissan Down 50.1% (largest decline among major brands)

Leading BEV Brands - First Quarter 2026 (Year-to-Date March)

Brand YTD Sales BYD 9,954 units Tesla 7,260 units Kia 2,269 units MG 2,022 units Zeekr 1,832 units

Brands with Largest Sales Declines in 2025

Brand 2025 Decline Jeep -31.5% (1,682 units) Jaguar -30.0% (520 units) Maserati -30.0% (264 units) Peugeot -28.8% (1,350 units) Suzuki -27.7% Porsche -27.0% (5,133 units) KGM (formerly SsangYong) -23.7% (4,116 units) Nissan -21.6% (35,511 units) Volkswagen -20.6% (28,970 units) Volvo -18.6% (7,239 units)

Model-Specific Sales

Top-Selling Models - 2025

Model Deliveries Year-on-Year Change Ford Ranger 56,555 -9.6% Toyota RAV4 51,947 Data not provided Toyota HiLux 51,297 Data not provided Isuzu D-Max 26,839 Data not provided Ford Everest 26,161 Data not provided

Top-Selling Models - February 2026

  1. Ford Ranger (4,325 units)
  2. Toyota HiLux (3,625 units)
  3. Tesla Model Y (2,791 units)
  4. Chery Tiggo 4 (2,315 units)
  5. Mazda CX-5 (2,099 units)

Top-Selling BEV Models - First Quarter 2026 (Year-to-Date March)

Model YTD Sales Tesla Model Y 5,897 units BYD Sealion 7 4,468 units Zeekr 7X 1,725 units BYD Atto 2 1,481 units Tesla Model 3 1,363 units Geely EX5 1,437 units

Top-Selling BEV Models - March 2026

  1. Tesla Model Y: 2,818 sales (including new six-seater Model Y L)
  2. BYD Sealion 7: 1,970 sales
  3. Zeekr 7X: 679 sales
  4. Tesla Model 3: 667 sales
  5. Geely EX5: 606 sales

Segment Analysis

Market Share by Vehicle Type

  • 2025 Full Year: SUVs comprised 61% of the market; light commercial vehicles (utes) accounted for 22%; passenger cars made up 13.3% (down from 17.1% in 2024).
  • February 2026: SUVs held 60.3% market share; light commercial vehicles at 22.5%.

Segment Highlights - May 2025

Segment Sales Year-on-Year Change Medium SUVs 34,271 +25.6% Small SUVs 18,063 +2.2% 4x4 Utes 14,891 -18.0%

SUV Fuel Type Shifts - May 2025

SUV Fuel Type Year-on-Year Change EV SUV sales +167% PHEV SUV sales +377% Petrol SUV sales -31% Diesel SUV sales -41%

Country of Origin

May 2025

Country Sales Year-on-Year Change China 37,229 +74.1% Japan 22,832 -28.9% Thailand 17,552 -22.1% South Korea 13,184 +5.2% Germany 4,597 -6.5%

2025 Full Year

China became Australia's second-largest supplier of new vehicles, surpassing Thailand but remaining behind Japan.

February 2026

China became the leading source of new vehicles in Australia for the first time, with sales of Chinese-built vehicles increasing by 50.5%. This category includes vehicles from non-Chinese brands manufactured in China. Sales of Japanese-built vehicles decreased by 31.3%, and Korean-built vehicles saw a 2.9% reduction.

Regional Sales

May 2025 (Excludes Tesla, Polestar)

State/Territory Sales Change New South Wales 31,205 -3.0% Victoria 27,343 -4.6% Queensland 20,885 -8.9%

February 2026

Sales decreased in most regions, with New South Wales down 7.6% and the Australian Capital Territory down 18.7%. Victoria's sales remained unchanged.

Buyer Type

May 2025 (Excludes Tesla, Polestar, Heavy Commercial)

Buyer Type Sales Change Private 51,246 -2.8% Business 38,277 -4.1% Rental 4,957 -14.7% Government 2,364 -19.2%

February 2026

Private, business, and government buyer sales saw reductions year-on-year, while rental sales increased.

Key Statements from Industry Representatives

  • Tony Weber, CEO, Federal Chamber of Automotive Industries (FCAI): Stated in relation to 2025 data that the New Vehicle Efficiency Standard (NVES) has increased EV availability but has not significantly impacted demand, raising concerns about its effects on vehicle availability and affordability. Regarding March 2026 data, Weber stated it is "too early to determine" if record EV sales represent a structural market shift, attributing increased EV consideration to fuel supply disruptions and a review of the fringe benefits tax concession for EVs. He emphasized the need for government investment in public charging infrastructure.

  • Julie Delvecchio, CEO, Electric Vehicle Council (EVC): Characterized the March 2026 data as reflecting a "fundamental shift" in consumer attitudes toward EVs, describing it as a "tipping point" where the fuel crisis has accelerated an existing trend. She warned that removing or scaling back the Electric Car Discount risks depriving Australians of savings on fuel and maintenance costs.

  • Thom Drew, Country Director, Tesla: Confirmed strong customer demand is depleting local stock, leading to increased supply in the second quarter of 2026. He stated wait times for some variants extend to May or August.

  • Scott Maynard, Head of Polestar Australia: Reported a "clear sense of urgency" from customers, with test drive bookings tripling and showroom traffic increasing.

  • Gavin Donaldson, Chief Operating Officer, Hyundai: Noted a clear increase in consumer interest in EVs due to rising petrol prices and global fuel market uncertainty, stating these conditions are accelerating the shift toward EVs.

  • John Pappas, Vice President of Sales, Marketing and Franchise Operations, Toyota Australia: Noted increased demand for both battery-electric and hybrid vehicles but confirmed the company's continued focus on hybrid options.

Notable Brands at Risk or Declining (2025 Data)

Several established automotive brands recorded significant sales declines in 2025:

  • Jeep: Recorded its lowest annual Australian sales since at least 1997 (1,682 units), continuing a multi-year downward trend. The Grand Cherokee was its top-selling model despite being removed from the Australian lineup.
  • Jaguar: Deliveries fell to 520 units as the brand transitions to an electric-only, premium market position.
  • Maserati: Sales fell to 264 units, well below its 2017 peak of 740 units.
  • Porsche: Sales decreased to 5,133 units, with the Macan experiencing a 34% decline amid its transition to an electric-only version.
  • Volkswagen: Total sales of 28,970 units contrast with 60,225 units a decade prior.

Notable Growing Brands

  • BYD: Entered the top 10 brands in 2025 for the first time with 52,415 deliveries (+156.2%). Became the top-selling EV brand in Australia in March 2026 with 4,206 BEV sales, leading the 2026 year-to-date count with 9,954 units. Reported an order backlog exceeding 10,000 units.
  • GWM: 52,809 deliveries in 2025 (+23.4%), with continued growth into 2026.
  • Chery: 4,401 deliveries in May 2025 (+59.7%), with 93.2% growth in February 2026.
  • Zeekr: Fastest-growing new brand; sold 1,832 BEV units in Q1 2026.

Data Comparability Notes

  • Sales data for specific BEV models and brands may show minor discrepancies between sources due to reporting methodologies.
  • Total BEV sales reported by FCAI and EVC for the year-to-date March 2026 period (34,382 units) exceeded the sum of individual model data (33,659 units), indicating a gap of 723 units for which model-specific data was not yet available.
  • Some manufacturers do not provide EV-specific breakdowns for models that also have internal combustion engine (ICE) variants.
  • Earlier sources (Sources 1-3) reference May 2025 data, while later sources (Sources 7-23) cover 2026 data. Some sources appear to use different year references that may reflect reporting errors or different data collection periods.