Australians are now buying electric and hybrid vehicles at nearly the same rate as traditional petrol-powered cars, according to new data showing EV sales doubled in the months after the peak of the fuel price spike. The Australian Automobile Association (AAA) released its latest EV Index, revealing that in the three months from April to June, almost half of all new car sales were electric, plug-in hybrid, or hybrid vehicles.
Record market share for EVs and plug-in hybrids
The market share of battery electric vehicles (EVs) reached a record 21.03%, while plug-in hybrids hit 10.58%, both all-time highs. Combined with traditional hybrids, these alternative powertrains accounted for 49.16% of new car sales in the quarter, up from 35.77% in the first quarter of 2026. This marks a significant shift in consumer preference, driven by fuel price instability and growing environmental awareness.
Fuel prices peaked in March, amid instability in the Middle East that affected key supply routes. The federal government intervened on 30 March, announcing a fuel excise reduction that provided some relief at the bowser, but prices are again on track to top $2 a litre as the measure ends on Sunday.
EV sales double, largest quarterly rise on record
The AAA's figures show that sales of battery electric vehicles more than doubled in the second quarter of 2026, rising from 34,435 in the first three months to 69,414 between April and June. The AAA says this is the largest-ever quarterly rise for electric vehicles. Hybrid sales also reached an all-time high, but were overtaken by the surge in EV purchases.
Sales of traditional internal combustion engine (ICE) vehicles fell from 64.23% in the first quarter of 2026 to 50.84% in the most recent data. This is the lowest-ever market share for petrol-powered vehicles and their biggest-ever quarterly drop, according to the AAA. When the AAA's EV index began recording data in 2022, ICE cars accounted for nine out of every ten sold.
Fuel crisis accelerates transition
The transition to electric and hybrid vehicles is being accelerated by the ongoing fuel crisis, with consumers seeking alternatives to volatile petrol prices. The AAA's data underscores a structural shift in the Australian car market, with EVs and hybrids now mainstream choices rather than niche options.
Industry analysts note that the trend is likely to continue as more affordable EV models enter the market and charging infrastructure expands. However, challenges remain, including range anxiety and the need for greater investment in charging networks, particularly in regional areas.
