Electric vehicles captured a significant 21.7% of the new car market in July 2026, continuing their momentum from June when they accounted for 23.5%. This reflects the growing popularity of battery electric vehicles in Australia.
The total number of full battery electric vehicles sold in July reached 23,510. This makes them more than one-fifth of the new vehicle market for the second month in a row. This continued upward trend shows the increasing shift in consumer preferences. They are moving toward electric vehicles as an alternative to traditional gasoline-powered cars.
Tesla and BYD Lead the Charge
EV Sales Breakdown
Tesla Model Y was the top-selling EV with 4,664 units sold, though it lost the overall top position to the Toyota RAV4 and Toyota Hilux ute. BYD followed closely with the Sealion 7, which sold 2,548 units. Tesla's performance in July was notable for being the first month of the quarter, typically its slowest period.
Chinese automakers like Geely, Jaecoo, Zeekr, and MG also performed well in the EV segment. The Jaecoo J5 sold 1,654 units for the month, while new models like the MG4 Urban and Geely EX2 also showed strong sales. These models are contributing to the growing presence of Chinese EV brands in the Australian market.
Plug-in hybrid electric vehicles (PHEVs) accounted for 10,359 sales in July. Toyota saw 39% of its RAV4 sales as plug-in hybrids, contributing to the overall surge in eco-friendly vehicle purchases. The Electric Vehicle Council recorded 4,921 additional sales, reflecting the continued interest in low-emission vehicles. These figures show that both full battery EVs and plug-in hybrids are gaining traction as consumers seek out more sustainable options.
Charging Infrastructure Concerns
FCAI has raised concerns about the pace of charging infrastructure growth compared to the rapid adoption of EVs. Their chief executive, Tony Weber, warned of potential mismatches between demand and supply in public charging. Julie Delvecchio, head of the Electric Vehicle Council, noted that cost-effectiveness and environmental benefits are driving Australians to switch to electric vehicles. According to Delvecchio, lower operating costs, environmental considerations, and improved driving experiences are motivating consumers to choose EVs over traditional vehicles.
BYD outsold Tesla in EVs for the fifth month this year, with 5,116 units compared to Tesla’s 4,778. This trend is expected to continue as more EV models become available. BYD is currently leading the year-to-date sales with 34,308 units sold compared to Tesla’s 28,366. Although Tesla sells fewer units on average, it offers fewer models, while BYD's broader lineup is helping it gain traction among a wider range of consumers.
The overall sales figures for July 2026 reflect a record month for the Australian new car market. There were 103,656 new vehicles delivered. This surpassed the previous July's record of 103,097. This shows that despite economic challenges, the market remains resilient. The Electric Vehicle Council reported that the number of EVs and hybrids being sold continues to rise steadily.
Policy and Market Dynamics
The Federal Chamber of Automotive Industries (FCAI) has been vocal about its concerns. It is regarding the Australian government's vehicle emission standards. These standards have played a role in the current surge in EV sales. FCAI chief executive Tony Weber emphasized the need for collaboration. He said governments and the private sector must work together. They must ensure the public charging network meets the growing demand. This is especially important in regional areas where home charging options may be limited. This collaboration is essential to maintaining consumer confidence. This is as EVs become a larger part of the vehicle market.
Electric vehicles are not only performing well in terms of sales. They are also being driven by factors such as the rising cost of fuel. Another factor is the environmental impact of traditional vehicles. As Australians become more conscious of these issues, the market for EVs is expected to continue growing. The Electric Vehicle Council remains optimistic about the future of electric vehicles in Australia. They are committed to supporting this transition through advocacy and education.
Almost one in three new passenger, SUV and light-commercial vehicles sold in Australia during July was electric, with combined battery-electric and plug-in hybrid sales reaching a record 32.2% of new car sales. Australians purchased 23,510 battery-electric vehicles (BEVs) alone in July, 22.3% of all sales - more than tripling the 7.2% in July 2025. A further 10,359 plug-in hybrid electric vehicles (PHEVs) were sold in July, lifting total EV sales to 33,869 - up from 11,250 in July last year.
Year to date, EVs have secured 26.7% of the total new vehicle sales market in 2026 - more than double the 12% share recorded over the corresponding period in 2025. Battery electric accounted for 17.7% of sales, up from 7.7%, while plug-in hybrids increased from 4.2% to 9%. The national EV fleet is now estimated at around 650,000 vehicles - about 3% of cars on Australian roads.
The Tesla Model Y series led EV sales with 4,644 vehicles, followed by the BYD Sealion 7 with 2,548, Geely EX5 with 2,034 and Zeekr 7X with 1,892.
Tesla said the company continued to experience strong consumer interest in Australia. Tesla continues to see strong enquiry for EV adoption across Australia. While market conditions influence demand, our growth is aligned with what customers want and continues to drive sustained demand for Australia’s favourite electric vehicle.
Polestar Australia Managing Director Scott Maynard said demand remained encouraging following the end-of-financial-year sales period. While July is typically a quieter sales period after the end of the financial year, we’re encouraged by the continued strength of EV demand across Australia. Interest in premium electric vehicles remains high, and we look forward to giving Australians even greater choice as the market continues to evolve.
Volvo Car Australia Managing Director Stephen Connor said EVs now represented a growing proportion of the company’s Australian sales. Volvo Cars continues to see strong momentum in EV adoption. Year-to-date, fully electric vehicles account for 42% of our total sales, up from 32% for the same period last year. In July alone, EVs represented 65% of our sales mix, compared with 30% in July 2025, demonstrating growing consumer confidence in electric mobility and Volvo’s expanding EV offering.
Volkswagen Group Australia said greater competition was making electric vehicles increasingly relevant to a broader range of motorists. The continued evolution of Australia’s EV market is creating greater choice for customers than ever before. Drawing on Volkswagen Group’s position as the electric vehicle market leader in Europe, Volkswagen Group Australia, together with its brands Volkswagen Passenger Vehicles, Audi, Škoda, CUPRA and Volkswagen Commercial Vehicles, remains committed to offering electric vehicles and services that meet a diverse range of customer needs, helping make electric mobility increasingly accessible and relevant for Australian drivers.
Hyundai is marking 40 years in Australia during August, having sold more than 2.2 million vehicles nationally over that period. Hyundai has always believed progress comes from challenging expectations. We’ve never been afraid to do things differently, and I think our customers have recognised and rewarded that over the past 40 years.
JULY 2026 EV MARKET AT A GLANCE - BEV sales: 23,510 vehicles - BEV market share: 22.3%, up from 7.2% in July 2025 - PHEV sales: 10,359 vehicles - PHEV market share: 9.8%, up from 4% in July 2025 - Combined EV sales: 33,869 vehicles - Combined EV market share: 32.2%, up from 11.2% - Combined EV sales growth: 201.1% year-on-year - Year-to-date EV market share: 26.7%, up from 12% - Estimated national EV fleet: Approximately 650,000 vehicles
Contact details: Todd Hayward - 0412 205 151