Australia EV sales 2026 recorded their biggest-ever quarterly surge, with new figures showing electric vehicle purchases doubled in the three months to June 30, according to the Australian Automobile Association, as reported by ABC News. The spike coincided with rising fuel prices that followed the outbreak of war in Iran and the closure of the Strait of Hormuz at the end of February, ABC News reported.
According to the data, nearly one in every two new vehicles sold during the quarter, or 49 per cent, was either electric or hybrid. The Australian Automobile Association’s figures showed that the fully electric vehicle market share climbed from 12.25 per cent to more than 21 per cent over a six-month period.
ABC News reported that this marked the first time fully electric vehicles outperformed hybrid models in market share, even though hybrids recorded their second-highest share on record. At the same time, the share of non-electric vehicle sales fell sharply, dropping to 50.84 per cent of June quarter sales from 64.23 per cent previously.
Liberal deputy leader Jane Hume said the figures showed the EV market did not need additional government subsidies, telling the ABC’s Insiders programme that the subsidy scheme had “run out of control” and was costing Australians more. She said the strong sales figures reflected market demand rather than a need for further government support.
The federal government’s May budget outlined a gradual winding down of tax discounts designed to encourage EV uptake, a move expected to save $1.7 billion over four years, according to ABC News. The discount was first introduced in early 2023 and reduced the cost of electric vehicles for consumers through an exemption to fringe benefits tax.
ABC News reported that the scheme had been adopted far beyond the government’s original expectations, with costs reaching an estimated $1.35 billion this financial year, compared with an initial forecast of $90 million. From April next year, the tax exemption will continue to apply in full to electric vehicles priced below $75,000, while vehicles above that threshold will receive only a 25 per cent discount on the fringe benefits tax.
From April 2029, all battery-powered vehicles priced below the luxury car tax threshold will receive a 25 per cent tax discount under the revised scheme, according to ABC News. Climate Change Minister Chris Bowen has previously said the government was scaling back the discount because it had achieved its purpose, driving investment in charging infrastructure and stimulating broader uptake of electric vehicles.
With more Australians driving electric vehicles, car dealers are now calling on the federal government to update Australian Consumer Law to strengthen protections for buyers who purchase EVs from overseas manufacturers, ABC News reported. The push for updated legal protections comes as the local EV market continues to expand rapidly following the quarter’s record growth.
The rise in Australia EV sales 2026 mirrors a broader global shift toward electrified vehicle lineups, with automakers in other markets also reporting strong growth. Tata Motors, for instance, recently reported a sharp rise in its own passenger vehicle sales for July 2026, driven in part by record electric vehicle wholesales in the Indian market.
No timeline for further government review of the fringe benefits tax exemption was included in the available reporting. ABC News said the Australian Automobile Association’s June quarter figures represent the most recent available data on national vehicle sales trends.
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