Electric vehicle sales surged in the first quarter of 2026, with new data pointing to a sharp rise in demand due to fuel price increases and supply uncertainty.
Figures released by the Electric Vehicle Council show combined sales from Tesla and Polestar reached 7,725 units in the first quarter of 2026, up 40% from 5,549 vehicles sold during the same period last year. March alone accounted for 3,645 sales, marking a 21.1% increase year-on-year and a 6.6% lift compared with February.
Demand increases as fuel concerns grow
Electric Vehicle Council chief executive Julie Delvecchio said the surge reflects a growing shift in consumer priorities, particularly as households look to reduce fuel costs.
“With fuel prices rising, every EV on the road is doing something simple but powerful – taking pressure off fuel supply for the people who need it most.”
“EV drivers are driving the country’s fuel resilience while cutting costs on their household budget. This has never been more important than now, given the PM’s address urging people to use petrol and diesel responsibly and ‘save fuel for people who have no choice but to drive”.
“Volatile global oil markets are changing the conversation. Australians aren’t asking whether EVs are the future anymore. They’re asking which one they can get their hands on, and when.”
Used market and finance demand climb
The shift is also evident in the used vehicle market, with auction house Pickles reporting a 60% rise in second-hand EV sales in March compared with February, alongside a 163% jump in online searches.
Most used EVs are now being sold at more accessible price points, with 82% priced under $50,000 and 43% below $30,000. At the same time, Commonwealth Bank recorded a 161% increase in demand for EV finance since the start of March.
Demand starting to outpace supply
Thom Drew, Tesla Country Director, Australia & New Zealand said demand is beginning to outpace available stock.
“The fuel crisis is pushing Australians to look for more certainty – both on energy and cost of living – and EVs are delivering exactly that.
“We’re seeing strong customer demand clear out local stock, so we’re ramping up Q2 supply, with more vehicles arriving over the coming weeks.”
Similarly, Scott Maynard, Polestar Australia Managing Director said customer urgency is increasing.
“There is a clear sense of urgency from customers, which is driving strong order volumes. Interest in Polestar’s electric cars is surging in Australia. Test drive bookings have tripled in the last fortnight, and traffic to our showrooms is what we’d expect to see during a sale event. The vulnerable state of our nation’s fuel security has been exposed, and won’t magically improve when the current crisis ends.”
Broader industry sees rising interest
Other manufacturers are also reporting stronger engagement as operating costs come into sharper focus.
Volkswagen Commercial Vehicles Brand Director Nathan Johnson said businesses are increasingly exploring EV options.
“We’re seeing steady growth in enquiries and conversion for electric Volkswagen passenger and commercial vehicles, with more businesses exploring how EVs can reduce operating costs in everyday use. While the transition is happening gradually, interest is clearly rising and our expanding electric lineup in Australia is designed to support customers as they take their first steps into e-mobility.”
Gavin Donaldson, Hyundai’s Chief Operating Officer, added that market conditions are accelerating adoption.
“Hyundai is seeing a clear increase in consumer interest in electric vehicles as Australians respond to rising petrol prices and heightened global fuel market uncertainty. These conditions are accelerating the shift toward EVs, which offer lower running costs, greater energy security and reduced exposure to international supply shocks.”
Meanwhile, Jeff Mannering, Audi Australia’s Brand Director, said improving consumer understanding is also supporting demand.
“What we’re seeing now is a maturing BEV and PHEV market where customers arrive with a better understanding of the technology, charging and real-world range. That shift in confidence is accelerating demand for our electric and plug-in hybrid models, and we are experiencing momentum for these models online and in showrooms.”
Policy settings remain in focus
Ms Delvecchio said policy stability will be critical to maintaining momentum, particularly as the Electric Car Discount remains under review.
“The Electric Car Discount, currently under review, is making EVs more available than ever before. Removing or scaling it back risks depriving Australians of $3,000 a year in savings on fuel and maintenance costs. With the cost-of-living front of mind for every Australian family, those savings couldn’t be more timely.”
“What we’re seeing is a tipping point. The fuel crisis hasn’t created interest in EVs – it’s accelerated a shift that was already underway. Our website saw almost 100,000 page views in the past month, up 71%, with 97% of visitors new to our site. The most visited page? ‘EVs available in Australia.’ Australians are ready – the industry needs to meet them there.”
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