EVs and Hybrids Approach 50% of Australian New Car Sales Due to Ongoing Fuel Crisis

Australians are purchasing electric and hybrid vehicles at nearly the same rate as traditional petrol-powered cars, according to new data that highlights the growing impact of fuel prices on consumer buying decisions.

The latest Electric Vehicle Index from the Australian Automobile Association (AAA) shows a sharp increase in demand for electrified vehicles during the April-to-June quarter, following a period of significant fuel price volatility due to the Iran war. Nearly half of all new vehicles sold during the quarter were battery electric, plug-in hybrid, or hybrid models.

Battery electric vehicles achieved a record 21.03% share of new vehicle sales, while plug-in hybrids reached an all-time high of 10.58%. Hybrid vehicle sales also set a new record, although the growth in fully electric vehicle sales was even stronger.

Fuel prices surged earlier this year amid instability in the Middle East that disrupted key global supply routes. In response, the federal government announced a temporary fuel excise reduction on March 30 to help ease costs for motorists. That relief measure is set to expire soon, with fuel prices expected to climb above $2 per litre once again.

AAA data shows battery electric vehicle sales more than doubled during the second quarter of 2026, rising from 34,435 units in the first three months of the year to 69,414 between April and June. According to the association, this represents the largest quarterly increase in EV sales ever recorded in Australia.

At the same time, sales of traditional internal combustion engine (ICE) vehicles continued to decline. Their share of the new vehicle market fell from 64.23% in the first quarter of 2026 to 50.84% in the second quarter, marking the lowest market share ever recorded for petrol-powered vehicles and the largest quarterly decline on record.

The shift is particularly striking when compared with 2022, when the AAA first began tracking the data. At that time, ICE vehicles accounted for roughly nine out of every ten new vehicles sold in Australia. The latest figures suggest Australian consumers are rapidly embracing electrified transportation as fuel costs rise and EV options continue to expand.

Drivers are reacting to the country’s recent fuel shortages and outages. In March 2026, EVinfo.net reported that more than 500 service stations were out of at least one type of fuel and dozens ran completely dry due to the Iran war.

Seven Electric Models Exceeded 1,000 Sales in June 2026

Australia has no tariffs that reduce Chinese EV sales, so the country is a good example of how quickly Chinese brands can grow without tariffs.

On July 10, 2026, The Driven reported that just a few months ago, only a small number of electric vehicles consistently surpassed 1,000 monthly sales in Australia, most notably the Tesla Model Y, Tesla Model 3, and BYD Sealion 7.

That picture has changed dramatically. In June 2026, a record-setting month for EV sales in Australia, seven electric models exceeded 1,000 sales, reflecting the rapid growth and increasing diversity of the country’s EV market. While the Tesla Model Y and BYD Sealion 7 remained among the top performers, a wave of newer Chinese models joined the list. Meanwhile, the Tesla Model 3 slipped to 12th place, highlighting shifting consumer preferences and intensifying competition.

The latest sales figures point to a changing landscape in the EV industry. Every model among the month’s top sellers was either manufactured in China or owned by a Chinese automaker. The Tesla Model Y, which led the market with an impressive 8,072 sales, is produced at Tesla’s Shanghai factory. BYD, Geely, Omoda Jaecoo, and Zeekr are all Chinese brands, while MG, despite its British heritage, is also Chinese-owned.

Affordability is playing a major role in the surge. Several of the best-selling models are priced well below many competing EVs. The BYD Atto 2, Omoda Jaecoo J5, and MG4 Urban can all be purchased for less than AUD $40,000, while the Geely EX5 is available for under AUD $50,000.

Australia’s top-selling EVs for June 2026 were:

• Tesla Model Y: 8,072 sales
• BYD Sealion 7: 4,730 sales
• BYD Atto 2: 2,482 sales
• Geely EX5: 2,303 sales
• Omoda Jaecoo J5: 2,096 sales
• Zeekr 7X: 1,868 sales
• MG4 Urban: 1,015 sales

The results underscore the growing influence of Chinese automakers in Australia’s EV market and demonstrate how competitive pricing and expanding model choices are accelerating electric vehicle adoption across the country.