Electric vehicle sales have overtaken petrol car sales for the first time in Australia, marking a major shift in the country’s new vehicle market. The change comes as more Australians choose electric vehicles (EVs) because of lower running costs, wider model availability and government incentives.
New vehicle sales figures for August showed more than 27,000 battery electric vehicles (BEVs) were sold, representing 24.9% of total new vehicle sales and setting a new monthly record. BEV sales increased by 171% compared with August last year. With 25,824 units sold, battery electric vehicles also surpassed petrol-powered cars during the month.
When battery electric, plug-in hybrid and conventional hybrid vehicles are combined, electrified vehicles accounted for more than half of all new vehicle sales in August.
The growing popularity of EVs is also providing financial benefits to drivers. Analysis by the National Automotive Leasing and Salary Packaging Association estimates that working Australians who accessed the Electric Car Discount during the first half of this year are expected to save around $76 million in 2026.
The uptake has been particularly strong in outer-suburban communities. Tarneit, Werribee, Kellyville, Marsden Park and Baulkham Hills were among the postcodes reporting high use of the Electric Car Discount.
Australia’s Minister for Climate Change and Energy, Chris Bowen, described the figures as a landmark moment for the country’s automotive market. He said Australians were increasingly choosing vehicles that are cheaper to operate, cleaner and less exposed to international petrol price shocks.
The government has attributed the rapid growth partly to the New Vehicle Efficiency Standard, which is designed to increase the availability of lower-emission vehicle models. Government support for EV purchases and investment in charging infrastructure are also helping accelerate adoption.
The August figures indicate that electric and other electrified vehicles are moving rapidly into the mainstream of Australia’s automotive market.
