The Australian new car market is barely growing, but what we buy is changing. Gasoline and diesel engines are losing market share, while hybrids, plug-in hybrids and battery-electric vehicles now account for almost 30 percent of new car sales.
Between January and November 2025, Australians purchased 1,097,992 new passenger cars, SUVs and light commercial vehicles. That’s up from 1,090,594 in the same period in 2024, an increase of 7,398 vehicles or around 0.7 percent.
Within this almost stagnant market, the mix is shifting away from traditional fuels.
The share of gasoline engines in the light vehicle market fell from 44.7 percent in 2024 to 40.1 percent in 2025. Diesel fell from 31.3 to 30.6 percent over the same period. Electrified drives have closed the gap.
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Electric vehicles rose from 82,960 sales in the first 11 months of 2024 to 92,886 sales in the same period of 2025. The market share of electric vehicles increased from 7.6 to 8.5 percent of new light vehicle sales.
Plug-in hybrids (PHEVs) and conventional hybrids are growing even faster. During the same January-November period, PHEV sales rose from 20,631 to 47,565, up 130.6 percent, while hybrid vehicle sales rose from 158,241 to 180,378, up 14.0 percent.
Combined, electrified vehicles – electric vehicles, PHEVs and hybrids – now account for 29.2 percent of all new light vehicle sales year to date, up from 24 percent in the same period last year. Gasoline and diesel still take the brunt, but the shift in share is clear.
The November 2025 snapshot highlights how quickly this change occurs from month to month.
VFACTS recorded 93,228 deliveries of new passenger cars, SUVs and light commercial vehicles in November for brands reporting to FCAI. Tesla and Polestar add another 2,702 and 167 deliveries respectively, bringing the actual November light vehicle market to 96,097 vehicles.
When these additional EVs are included, EVs accounted for 9,081 sales in November, representing 9.4 percent of the market. PHEVs contribute 4,768 sales (5.0 percent) and conventional hybrids 18,952 sales (19.7 percent). Overall, 34.1 percent of new vehicles sold in November were electrified in some form.
This is the “one-to-three” limit that the industry has been talking about for years.
The details in the EV segment are more nuanced than Tesla’s headline numbers suggest.
According to the EV Council, Tesla deliveries fell from 34,754 vehicles in January to November 2024 to 26,271 vehicles in the same period in 2025, a decline of 24.4 percent. Polestar rose from a low base of 1,535 to 2,189 vehicles, an increase of 42.6 percent.
With total EV volumes reaching 82,960 in 2024 and 92,886 in 2025, Tesla accounts for 28 percent of Australia’s EV volume so far this year (26,271 of 92,886 vehicles), a decrease from around 44 percent (36,289 of 82,960) in 2024.
The rest of the electric vehicle market is growing strongly. VFACTS shows that all other brands’ EV sales increased year-over-year from 46,671 to 64,426, an increase of 38.0 percent. In other words, most of the BEV growth is coming from non-Tesla electric vehicles.
If you look at the declines in petrol and diesel, the picture is clear. The overall market is almost flat, but:
- Gasoline lost 4.6 percentage points of market share
- Diesel slipped slightly
- Electric vehicles have gained almost a percentage point in market share
- Plug-in hybrids and conventional hybrids have taken over the rest, increasing the electrified market share from 24.0 to 29.2 percent
Given the significant influx of affordable electric vehicles and the many new brands competing in this space, the trend towards electrification will continue in 2026.
