New Car Deliveries Hit Record High as EV Market Share Exceeds 20% for Second Month
Australia's automotive market achieved another milestone in July, with new car deliveries reaching 103,656 units, a slight 0.5% increase over the previous July record of 103,097 set in 2025. Among these, fully electric vehicle sales totaled 23,510 units, pushing the market share to 21.7% and marking the second consecutive month above the 20% threshold.
The latest data released by the Federal Chamber of Automotive Industries (FCAI) shows that the growth in electric vehicle sales was primarily driven by Chinese brands. The Tesla Model Y remained the best-selling electric vehicle with 4,664 units sold, though the overall top-selling vehicles in the market were the Toyota RAV4 and Hilux. Notably, more than half of Tesla's July sales were attributed to the new six-seater Model Y L, indicating rising consumer demand for multi-seat electric vehicles.
Chinese Brands Lead as BYD Surpasses Tesla in Year-to-Date Sales
In July, BYD sold 5,116 fully electric vehicles in Australia, nearly 10% higher than Tesla's 4,664 units, marking the fifth month in 2026 that BYD has outsold Tesla. Cumulatively, BYD's sales for the first seven months of the year reached 34,308 units, surpassing Tesla's 28,366 units for the first time and securing its position as Australia's top-selling pure electric vehicle brand. Despite BYD's diverse model lineup, Tesla continued to dominate the market with its single Model Y offering.
Other Chinese brands also delivered strong performances. Geely's EX5 and Zeekr 7X sold 2,034 and 1,892 units, respectively, with the Zeekr 7X achieving its best-ever monthly sales in Australia. The Jaecoo J5 also performed well with 1,654 units sold, while newer models like the MG4 Urban posted solid sales figures. Chinese brands continued to expand their market share in Australia's electric vehicle sector, further squeezing the space for traditional automakers.
Plug-in Hybrid Sales Surge as PHEV Volume Exceeds 10,000
The Toyota RAV4 sold 5,564 units in July, with 39% being plug-in hybrid electric vehicles (PHEVs), driving Australia's total PHEV sales to 10,359 units for the month. Despite the rise in PHEV sales, fully electric vehicles maintained robust growth, with market share significantly higher than the same period last year. The popularity of the Toyota RAV4 plug-in hybrid reflects strong consumer demand for transitional vehicle models.
Tony Weber, Chief Executive of the FCAI, expressed concerns about the rapid increase in electric vehicle sales, warning that charging infrastructure may struggle to keep pace with demand. Weber stated, "The rapid growth in electric vehicle sales in 2026 could outstrip the supply of public charging infrastructure. Governments and the private sector must collaborate to expand public charging networks, particularly in regional areas and for users without home charging capabilities, to ensure accessibility and reliability and maintain consumer confidence."
Experts: Lower Running Costs and Expanding Choices Drive EV Adoption
Julie Delvecchio, a representative of the Electric Vehicle Council, noted that the growth in electric vehicle sales reflects consumer recognition of their economic benefits and driving experience. She said, "Electric vehicle sales are well ahead of last year, driven by an expanding range of models and positive consumer response to lower running costs. While July sales dipped slightly compared to the end of the fiscal year in June, the overall trend is clear."
The FCAI also criticized the federal government's vehicle emission standards, suggesting that soaring fuel prices and these policies jointly fueled the growth in electric vehicle sales. Although Toyota's overall July sales were nearly three times those of BYD, BYD nearly overtook Toyota as the best-selling brand in June, highlighting the rising competitiveness of Chinese brands in the Australian market. With more models entering the market, the pace of electric vehicle adoption is expected to accelerate further.
