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EVs and hybrids approach half of Australian new car sales amid ongoing fuel crisis

Created at 2 Aug · 5:06 AM1 source↑ Market-relevant
IN SHORT

Electric and hybrid vehicle sales in Australia have reached parity with traditional petrol cars, with EVs doubling their market share in the months following a fuel price spike. This shift coincides with the end of federal fuel excise reductions.

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Key Numbers

$2per litre fuel price target
21.03%EV market share (April-June)
10.58%Plug-in hybrid market share (April-June)
69,414BEV sales (April-June)
34,435BEV sales (Jan-Mar)
50.84%ICE vehicle market share (April-June)

Who's Involved

Australian Automobile Association (AAA)
Released latest EV Index data
Federal government
Ended fuel excise reductions

↳ Why This Matters

The shift in consumer preference towards EVs and hybrids highlights a significant change in the Australian automotive market, driven by fuel price volatility and potentially influenced by environmental concerns. This transition impacts the automotive industry, energy consumption patterns, and government policy related to emissions and fuel taxes.

Key facts

  • Electric and hybrid vehicle sales now match traditional petrol car sales in Australia.
  • EV market share hit a record 21.03% and plug-in hybrid share reached 10.58% in the April-June quarter.
  • Battery electric vehicle sales more than doubled in the second quarter of 2026.
  • Traditional internal combustion engine vehicle sales dropped to their lowest market share of 50.84%.
  • Australians are increasingly opting for electric and hybrid vehicles, with sales now matching traditional petrol-powered cars. This trend accelerated in the April to June quarter, following a spike in fuel prices and the subsequent end of federal fuel excise reductions. The Australian Automobile Association's latest EV Index shows that electric vehicle (EV) market share reached a record 21.03%, with plug-in hybrids at 10.58%. Battery electric vehicle sales more than doubled in the second quarter of 2026 compared to the previous three months. Concurrently, sales of internal combustion engine (ICE) vehicles fell to their lowest-ever market share of 50.84%, marking the largest quarterly drop for petrol-powered vehicles. When the AAA began tracking data in 2022, ICE cars represented nine out of every 10 sales.

    Frequently asked questions

    In the April to June quarter, electric vehicles held 21.03% of the market, plug-in hybrids held 10.58%, and hybrids also saw significant sales, bringing the total for electrified options to nearly half of new car sales.

    The increase is attributed to the recent spike in fuel prices and the end of federal fuel excise reductions, making electric and hybrid options more financially attractive.

    Sales of battery electric vehicles more than doubled in the second quarter of 2026, rising from 34,435 in the first quarter to 69,414.

    The market share for traditional internal combustion engine vehicles fell from 64.23% in the first quarter to 50.84% in the most recent data, marking their biggest-ever quarterly drop.

    What Happens Next

    01Fuel prices are expected to continue rising towards $2 a litre.

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    How It Developed

    Australians are buying electric and hybrid vehicles at the same rate as traditional petrol cars.
    Fuel prices are on track to top $2 a litre as federal fuel excise reductions ended.
    The Australian Automobile Association released its latest EV Index showing a pivot to electric and hybrid options.
    Almost half of new car sales from April to June were electric, plug-in hybrid, or hybrid vehicles.
    EV market share reached a record 21.03%, and plug-in hybrids reached 10.58%.
    Sales of battery electric vehicles more than doubled in the second quarter of 2026.
    Hybrid sales were at an all-time high but were overtaken by EV sales.
    Sales of traditional internal combustion engine vehicles fell to their lowest-ever market share of 50.84%.

    Sources

    T1
    EVs and hybrids approach half of Australian new car sales amid ongoing fuel crisisThe Guardian

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