EVs and hybrids near half of Australian new car sales

Sales of electric and hybrid vehicles in Australia surged to nearly half of all new car purchases in the second quarter of 2026, as fuel prices climbed back toward $2 a litre. The Australian Automobile Association reported on August 2, 2026, that battery electric vehicles, plug-in hybrids, and hybrids together captured a record market share from April to June, while petrol-powered cars fell to their lowest share ever.

The shift affected new car buyers across the country, with battery electric vehicles alone more than doubling in sales to 69,414 units, up from 34,435 in the first quarter. Plug-in hybrids reached a record 10.58% market share, and hybrids also hit an all-time high, though they were overtaken by the surge in electric vehicle purchases. Traditional internal combustion engine vehicles dropped from 64.23% of sales in the first quarter to 50.84% in the latest data—the lowest share and largest quarterly decline on record, according to the AAA.

The pivot toward electrified vehicles coincided with a period of fuel price instability that peaked in March 2026, driven by Middle East disruptions affecting key supply routes. The federal government stepped in on March 30 with a fuel excise reduction, but that relief was set to end on Sunday, pushing prices back above $2 a litre. The AAA’s EV Index, which began tracking in 2022, shows how dramatically the market has changed: internal combustion engine cars once accounted for nine out of every ten sold.

The AAA called the 69,414 battery electric vehicle sales the largest-ever quarterly increase for EVs. The combined market share of electric, plug-in hybrid, and hybrid vehicles approached half of all new car sales, marking a milestone in Australia’s transition away from fossil-fuel-powered transport. The data underscores how rising fuel costs and policy interventions are reshaping consumer choices, with the excise reduction’s expiration likely to sustain pressure on petrol vehicle demand.