Australian automotive market transition to electric vehicles

The Australian automotive market is undergoing a significant transition as electric vehicle (EV) adoption rises and traditional fuel sales decline.

Toyota Australia has lobbied the federal government for more ‘equitable’ emissions laws, specifically regarding the New Vehicle Efficiency Standard (NVES). The company warned that current regulations could increase prices for diesel models like the HiLux and LandCruiser 70 Series, potentially impacting regional areas with limited charging infrastructure. Market data from late 2026 showed diesel-powered vehicle sales falling by 25.5 per cent year-on-year.

By September 2026, battery electric vehicles (BEVs) outsold petrol cars for the second consecutive month, capturing approximately 24.2% to 24.9% of the new vehicle market. When including plug-in hybrid electric vehicles (PHEVs), electrified powertrains accounted for over one-third of all new car sales. This shift coincided with a 36.2% drop in petrol sales and an 18.4% decrease in diesel sales, driven by rising fuel costs and increased model availability.