Sales of electric cars and petrol-powered vehicles have dropped, while hybrid and plug-in hybrid cars are gaining speed, according to new data from the Australian Automobile Association (AAA).
In the first three months of 2025, Australians bought 17,914 battery electric vehicles (BEVs). That’s the lowest in two years and only 6.3 per cent of all new car sales. It’s down from 21,331 BEVs sold in the December quarter of 2024.
Petrol and diesel cars, known as internal combustion engine (ICE) vehicles, still make up most sales. Around 206,810 ICE vehicles were sold in the March quarter. But that’s also a drop from the previous quarter.
While overall car sales fell slightly, hybrid and plug-in hybrid (PHEV) sales rose. Plug-in hybrids nearly doubled, from 7,556 in the December quarter to 13,698 in March 2025.
“Sales figures confirm a clear trend of growth for hybrids,” said the AAA in a statement.
In fact, hybrids have outsold BEVs for the last seven quarters in a row. BEV sales seem to have peaked for now.
One reason BEV sales may have slowed is that government rebates to help people buy them have ended across all states and territories. Western Australia was the last to stop its rebates in early May.
Plug-In Hybrids Gain Popularity
Plug-in hybrid cars are doing better each quarter, especially in the ACT where they now make up 11.65 per cent of new car sales. In big states like NSW and Western Australia, they make up around 4 per cent to 5 per cent of sales.
Two big things may have helped PHEV sales last quarter: the release of the BYD Shark 6 4WD Ute, which sold 4,836 units, and the end of a tax break for PHEVs in April. That tax break helped people save money when leasing these cars, so buyers may have rushed to purchase before it ended.
SUVs Still Rule the Road
Medium-sized SUVs are the most popular cars in Australia. They’re the top sellers for BEVs, hybrids, and PHEVs. For petrol and diesel cars, they’re the fourth most popular, behind small SUVs, 4WD Utes, and large SUVs.
In the March quarter, about half of all medium SUVs sold were petrol or diesel, nearly 30 per cent were hybrids, around 11 per cent were electric, and almost 9 per cent were plug-in hybrids.
The BYD Shark 6 Ute made a big splash in the PHEV market. It now makes up over 35 per cent of all PHEV sales and nearly 10 per centof all 4WD Utes sold.
The AAA’s EV Index helps people see how the car market is changing. It shows how many light vehicles are sold by fuel type – electric, plug-in hybrid, hybrid, and petrol or diesel.
The data comes from many trusted sources, like the Federal Chamber of Automotive Industries and the Electric Vehicle Council.
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