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

Lead

Australian motorists are shifting to electric and hybrid vehicles at an unprecedented rate, with new data showing these vehicles now account for nearly half of new car sales. The surge comes amid an ongoing fuel crisis triggered by the war in Iran and the closure of the Strait of Hormuz, which has pushed petrol prices to record highs and prompted drivers to reconsider their reliance on petrol.

Coverage Comparison

According to the Australian Automobile Association (AAA), almost half of all new vehicles sold in the April-to-June quarter were electric, plug-in hybrid, or hybrid vehicles. The market share of battery electric vehicles (EVs) reached 21.03% and plug-in hybrids 10.58%, both records, while sales of traditional internal combustion engine (ICE) vehicles fell to 50.84% — the lowest-ever share and biggest quarterly drop on record.

ABC Australia reported that fully electric vehicle market share jumped from 12.25% to more than 21% in six months, with nearly one in two new vehicles sold in the quarter being electric or hybrid. The Guardian reported that Australians bought more than 103,000 battery electric vehicles in the first half of 2026, surpassing the total for all of 2025, and that plug-in hybrid sales also outpaced last year’s figures.

ABC Australia also noted that electric vehicles accounted for one in five new car sales for a third consecutive month in July, with the share easing slightly from the record set in June. The Guardian highlighted that battery electric vehicles made up 23.4% of sales in June 2026, up from 10.3% a year earlier.

Key Claims

Several sources report that the growth in electric and hybrid vehicle sales is directly linked to the fuel crisis. The AAA data shows that sales of battery electric vehicles more than doubled in the second quarter of 2026, from 34,435 in the first three months to 69,414 between April and June. The Guardian reported that the increase is the largest-ever quarterly rise for electric vehicles.

Toyota remains the most popular brand of new cars sold overall, with more than 115,000 units, according to ABC Australia. Chinese EV maker BYD is close behind, selling more than 60,000 cars in July.

The federal government announced a fuel excise reduction in March to offset the impact of the Middle East crisis, but that measure is set to end on Sunday. The Guardian reported that fuel prices are expected to rise again, potentially topping $2 a litre, with diesel prices already up by about 50 cents to around $2.20 a litre on the east coast.

In May’s federal budget, the government also announced a gradual winding down of tax discounts for electric vehicles, introduced in 2023, which had made EVs thousands of dollars cheaper. ABC Australia reported that the policy, initially expected to cost $605 million, blew out to more than $1 billion.

Perspectives

Government (Coalition)

Liberal deputy leader Jane Hume told ABC Australia’s Insiders that the surge in EV sales shows the market does not need further government subsidies. “I think that’s the market speaking with its feet, and probably why we don’t necessarily need more subsidies on electric vehicles,” she said, adding that the current subsidy program had “run out of control” and was costing Australians more.

Electric Vehicle Council

Julie Delvecchio, chief executive of the Electric Vehicle Council, told The Guardian that the sharp rise in EV sales was driven by the fuel crisis. “It’s clear that the fuel crisis has reminded all of us how reliant we really are on overseas fuel,” she said, noting that this had pushed EVs “to the top of the list” for many buyers.

Federal Chamber of Automotive Industries

FCAI chief executive Tony Weber, quoted by ABC Australia, acknowledged the role of electric cars in record sales but warned that charging infrastructure must keep pace. “Accessible and dependable charging will be critical to maintaining consumer confidence as electric vehicles become a larger part of Australia’s new-vehicle fleet,” he said.

Analysts

George Whitcombe, an EV analyst at Benchmark Mineral Intelligence, told The Guardian that such a significant increase in EV sales is rare for an automotive market. “This sets that market on a new trajectory,” he said. Social researcher Rebecca Huntley, also quoted by ABC Australia, highlighted the influence of global events, saying, “If you were to have a poster of the greatest influencer when it comes to EV take-up in Australia, it’d have Donald Trump.”