Battery electric vehicles (BEVs), hybrids, and plug-in hybrids (PHEVs) accounted for 46 per cent of all new vehicle sales in Australia during May 2026.
New VFACTS data released by the Federal Chamber of Automotive Industries (FCAI) showed BEVs alone accounted for a record 20 per cent market share, marking the highest monthly EV penetration recorded in Australia to date.
A total of 100,206 new vehicles were sold during May, down 4.8 per cent compared with the same month in 2025.
Shift away from petrol and diesel accelerates
The greatest changes were recorded in the SUV market, where demand for electrified drivetrains continued to rise sharply.
According to the FCAI, EV sales in the SUV segment increased by 167 per cent year-on-year, while plug-in hybrid SUV sales climbed 377 per cent.
At the same time, petrol SUV sales fell by 31 per cent and diesel SUV sales declined by 41 per cent.
FCAI CEO Tony Weber said the market was rapidly changing as consumers responded to global fuel volatility and expanding low-emission vehicle availability.
“The shift is particularly evident in the SUV segment, where consumer preferences are changing rapidly. Today’s SUV buyer is increasingly choosing hybrid, plug-in hybrid and electric options,” Weber said.
Electrified vehicle trends
The May VFACTS data highlighted how quickly Australian buyers are moving toward lower-emission drivetrains, particularly in the SUV market where hybrid, plug-in hybrid and battery-electric options are expanding rapidly.
Battery electric vehicles reached a record 20 per cent market share during the month, while electrified vehicles overall accounted for 46 per cent of all new vehicle sales.
The strongest growth came from electrified SUVs, with buyers increasingly moving away from traditional petrol and diesel models as fuel prices remain elevated and more vehicle options enter the market.
| Vehicle Type | May 2026 Trend |
| Battery electric vehicles | 20% market share (record high) |
| Electrified vehicles overall | 46% of all sales |
| EV SUV sales | Up 167% YoY |
| Plug-in hybrid SUV sales | Up 377% YoY |
| Petrol SUV sales | Down 31% YoY |
| Diesel SUV sales | Down 41% YoY |
The figures also reflect the broader shift occurring across the market as manufacturers respond to the New Vehicle Efficiency Standard (NVES) by increasing supply of low-emission vehicles across more segments and price points.
Toyota remains market leader
Toyota remained Australia’s top-selling automotive brand during May with 16,342 sales.
Chinese manufacturers and emerging brands also continued gaining market share as competition intensified across the EV and hybrid segments.
BYD recorded 8,211 sales for the month, while brands including Omoda Jaecoo and Geely posted strong year-on-year growth.
| Top Brands – May 2026 | Sales | YoY Change |
| Toyota | 16,342 | — |
| BYD | 8,211 | +155% |
| Ford | 7,195 | — |
| Hyundai | 7,007 | — |
| Kia | 6,761 | — |
| Omoda Jaecoo | — | +729% |
| Geely | — | +416% |
The figures reflect the growing presence of Chinese brands in the Australian market, particularly across battery electric and plug-in hybrid segments.
Infrastructure pressure continues to build
The FCAI said the increase in EV adoption would place additional pressure on Australia’s charging infrastructure network.
“As the number of EVs on the road continues to grow, charging infrastructure must become more of a priority. Continued investment and enabling policy settings will be essential to ensure infrastructure keeps pace with consumer adoption,” Weber said.
Mr Weber also referenced findings from Victoria’s recent parliamentary inquiry into EV charging infrastructure, saying faster rollout would be important to maintaining consumer confidence.
“Charging infrastructure rollout must accelerate if Australia is to maintain consumer confidence and support continued uptake,” he said.
NVES linked to broader EV availability
The FCAI said the introduction of the New Vehicle Efficiency Standard was contributing to increased supply of low-emission vehicles entering the Australian market.
“The evidence increasingly demonstrates that NVES is encouraging manufacturers to bring more low emissions vehicles to Australia, increasing both consumer choice and technology availability,” Mr Weber said.
“Regulatory stability and growth in public charging infrastructure is now critical to maintaining investment, consumer confidence and continued growth, particularly during a period of global economic uncertainty.”
Did you find this article interesting? Click the ‘heart’ button above to give it a ‘like’!
