Australia’s new car market remains stable, but a clear shift is underway: petrol and diesel vehicles are losing ground to electrified alternatives. Hybrid, plug-in hybrid, and battery-electric vehicles now collectively account for nearly 30% of all new light vehicle sales. This transition isn’t just about environmental concerns; it reflects changing consumer preferences and a wider availability of electric options.
Market Overview: Stagnant Growth, Changing Composition
Between January and November 2025, Australians purchased 1,097,992 new cars, SUVs, and light commercial vehicles – a slight increase of just 0.7% from 2024. This near-flat market hides a significant internal change. Traditional fuels are declining in favor of electrified drivetrains.
Petrol’s market share fell from 44.7% to 40.1%, while diesel eased from 31.3% to 30.6% over the same period. Meanwhile, electrified options have expanded rapidly to fill the gap.
Rapid Growth in Electrified Vehicles
Electric vehicle (EV) sales rose from 82,960 in the first 11 months of 2024 to 92,886 in 2025, increasing market share from 7.6% to 8.5%. However, the most dramatic growth is seen in plug-in hybrids (PHEVs), which jumped 130.6% from 20,631 to 47,565 sales. Conventional hybrids also saw a strong rise, growing by 14.0% to 180,378 sales.
Combined, electrified vehicles now represent 29.2% of new light vehicle sales, up from 24% last year. While petrol and diesel still dominate, the trend is undeniable.
Monthly Trends and Tesla’s Evolving Role
November 2025 data reveals an even faster pace of change. Total deliveries reached 96,097 vehicles, with EVs accounting for 9.4% of the market, PHEVs for 5.0%, and conventional hybrids for 19.7% – collectively totaling 34.1% electrification.
Interestingly, Tesla’s market dominance within the EV segment is shrinking. Deliveries fell by 24.4% from 34,754 in 2024 to 26,271 in 2025, reducing Tesla’s share of the EV market from about 44% to 28%. However, other EV brands are surging, with non-Tesla EV sales increasing by 38.0%.
Key Takeaways: A Clear Shift
The data paints a clear picture: while the overall market is stagnant, the composition is shifting rapidly.
- Petrol has lost 4.6 percentage points of market share.
- Diesel has seen a slight decline.
- EVs have gained almost one percentage point of share.
- PHEVs and conventional hybrids have absorbed the remainder, pushing the electrified share to 29.2%.
The influx of affordable electrified vehicles and increasing competition among brands suggests this trend will continue into 2026. The automotive landscape in Australia is undergoing a fundamental transformation as consumers increasingly embrace cleaner, more efficient transportation options.
