Electric and hybrid vehicles accounted for almost half of all new light vehicle sales in Australia during the June 2026 quarter, as battery electric vehicle (BEV) sales recorded their largest quarterly increase on record.
The latest Australian Automobile Association (AAA) EV Index found that BEVs, plug-in hybrid electric vehicles (PHEVs), and conventional hybrids represented 49.16 per cent of new vehicle sales during the quarter ending 30 June 2026.
The report also showed total quarterly light vehicle sales reached an all-time high of 330,111 vehicles, with growth in electrified vehicle sales more than offsetting a decline in internal combustion engine (ICE) vehicle sales.
BEV sales more than double
Battery electric vehicle sales increased from 34,435 units in the March quarter to 69,414 in the June quarter, marking the largest quarterly increase since the AAA began publishing the EV Index.
BEVs captured 21.03 per cent of the market, exceeding the market share of conventional hybrids for the first time since the second quarter of 2023.
| Fuel type | Q2 2026 Market Share |
| Battery electric vehicles | 21.03% |
| Hybrids | 17.55% |
| BEV + Hybrid + PHEV | 49.16% |
| Internal combustion engine | 50.84% |
Plug-in hybrid vehicles (PHEVs) also achieved a record result, accounting for 10.58 per cent of total market share during the quarter.
Although hybrid sales reached an all-time high of 57,919 vehicles, their 17.55 per cent market share was overtaken by BEVs as electric vehicle adoption accelerated.
ICE vehicles fall to record low market share
The rapid growth of electrified vehicles pushed internal combustion engine vehicles to their lowest market share on record.
ICE-powered vehicles accounted for 50.84 per cent of new light vehicle sales during the June quarter, down from 64.23 per cent in the previous quarter. According to the AAA, this represents both the lowest market share and the largest quarterly decline recorded for petrol and diesel vehicles.
The association noted that since the EV Index was introduced in 2022, the share of ICE vehicles has fallen from almost nine out of every 10 new vehicle sales to around five out of every 10.
Medium SUVs continue EV transition
The AAA said the transition to electrified vehicles is becoming increasingly evident in Australia’s largest vehicle segment.
Medium SUVs remained the country’s most popular category during the June quarter, with battery electric vehicles accounting for 37.30 per cent of sales in the segment.
The AAA also noted that just over four years ago, BEVs represented less than one per cent of medium SUV sales, highlighting the pace of change within Australia’s new vehicle market.
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