Sales surge: electric, hybrid cars drive vehicle record

Jennifer Dudley-Nicholson |

During July, electric cars made up more than one in every five new vehicles sold.
During July, electric cars made up more than one in every five new vehicles sold.

More than 23,000 Australians have jumped behind the wheel of a new electric vehicle in the past month in a trend automotive experts say is defying expectations and potentially outpacing charging infrastructure. 

Electric cars made up more than one in every five new vehicles sold during July, falling just short of June’s record, according to figures released by the Federal Chamber of Automotive Industries and Electric Vehicle Council on Wednesday. 

But growing sales for hybrid, plug-in hybrid and electric cars pushed the automotive market to a sales record for July, with motorists purchasing more than 108,000 new vehicles. 

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During July, low-emission cars made up almost half of all sales in Australia. (James Ross/AAP PHOTOS)

The result came despite the declining popularity of diesel and petrol-powered cars, and as fuel prices rose due to continuing conflict in the Middle East and the removal of the government’s fuel excise discount.

After setting sales records for four months in a row, electric cars dipped slightly to make up 21.7 per cent of all new vehicles sold in July, down from a record of 23.3 per cent. 

Together with hybrid and plug-in hybrid electric models, low-emission cars made up almost half of all sales during the month at 48 per cent. 

By contrast, petrol car sales dropped by 30 per cent and diesel vehicles fell by 21 per cent in July compared with the same month in 2025. 

Strong interest in fuel-saving vehicles powered Australia’s automotive market during the month, although their rapid growth could deliver shocks down the road, chamber chief executive Tony Weber said. 

”There is a risk that the rapid increase in electric vehicle uptake in 2026 will outpace the supply of public charging infrastructure,” he said. 

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Sales of petrol and diesel vehicles lead the way despite EVs and hybrids gaining in popularity. (Susie Dodds/AAP PHOTOS)

”Governments and the private sector must work together to ensure that the public charging network meets growing demand, particularly in regional areas and for motorists who do not have access to charging at home.”

Four electric cars ranked among Australia’s 10 best-selling vehicles for July, including the Tesla Model Y, in third place, BYD Sealion 7, Geely EX5, and the Zeekr 7X. 

Continuing strong electric car sales defied expectations and showed consumers had made a choice to avoid rising fuel prices, Electric Vehicle Council chief executive Julie Delvecchio said.

”After a record end-of-financial-year month, we expected softer numbers in July but the underlying trend remains clear,” she said.  

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BYD ranks as Australia’s second-most popular automotive brand. (James Ross/AAP PHOTOS)

”Australians are increasingly choosing electric vehicles, drawn by lower running costs, less exposure to petrol price shocks, and a growing range of models.”

BYD again ranked as Australia’s second-most popular automotive brand during July, but long-time leader Toyota pulled ahead of the car maker with an almost 20 per cent market share. 

Toyota also claimed the top two spots on the monthly sales chart, with its RAV4 SUV and HiLux ute leading the pack. 

AAP