Australian car market sees surge in used EV sales and record new‑car purchases

Australia’s used‑vehicle market softened in the first half of 2026, with total used‑car sales falling 6.6% year‑on‑year to about 1.3 million units. Despite the overall decline, demand for electrified vehicles grew strongly: used electric‑vehicle sales rose 54.6% and plug‑in‑hybrid sales jumped 468.4% from a small base, together making up 7.1% of the used market. EVs also sold faster, with average days on the lot falling from over 60 in January to under 40 by June. Discounts widened, with the average price reduction reaching 3.7% – the biggest this year – especially on petrol and diesel models.

In the new‑car segment, June 2026 set an all‑time monthly record for deliveries, beating the previous high set in 2017. The surge was led by Chinese manufacturer BYD, whose plug‑in utes and other EV models captured market share from traditional brands, while Tesla’s Model Y remained the top‑selling electric vehicle. Legacy makers such as Toyota leaned on hybrids and cut prices on electric models to compete. The trend points to a reshaping of Australia’s road‑fleet toward more low‑emission vehicles as federal tax incentives for EVs near expiration.