VFACTS May 2026: Tesla Model Y tops the charts as EV sales surge in Australia's new-vehicle market

Australia’s new-vehicle market saw a 2.3% decline in May 2026, but electric vehicle (EV) sales surged 111.6% year-on-year to 21,303 units, capturing 19.9% market share, with Tesla’s Model Y becoming the country’s best-selling vehicle for the first time. Conventional hybrids and plug-in hybrids also grew, while traditional brands like Toyota faced double-digit declines, while BYD and Hyundai expanded their market share with strong EV and SUV sales.
Australia’s new-vehicle market delivered 106,887 units in May 2026, a 2.3% drop from the same month in 2025, but electric vehicles (EVs) drove growth with a 111.6% year-on-year increase to 21,303 units, accounting for 19.9% of total sales. Plug-in hybrids (PHEVs) grew even faster at 202.3%, reaching 9,315 units, while conventional hybrids rose modestly by 11.3%. Combined, EVs, PHEVs, and hybrids made up 46.4% of all new-vehicle deliveries. Tesla’s Model Y became Australia’s best-selling vehicle for the first time, pushing the brand to sixth place in the top 10, tied with its previous best ranking in June 2023. Despite offering only two models locally, Tesla’s Model Y led sales, while BYD secured second place for the second month in a row, with a 154.6% year-on-year increase driven by new models and strong demand for its existing lineup. Toyota, the market leader, saw a 30.7% decline in sales despite the full launch of its new HiLux range, including electric and extra-cab variants. Most of its models, including the Prado and Kluger, posted steep drops, while only the bZ4X, Camry, and HiAce saw gains. Ford remained in third place but dropped 15% overall, with larger vehicles like the F-150 and Transit performing better. Hyundai overtook Kia, with SUVs like the Kona and Tucson leading growth, while Kia’s new Tasman struggled with just 436 units sold. The Federal Chamber of Automotive Industries (FCAI) attributed the EV growth to the New Vehicle Emissions Standard (NVES), encouraging manufacturers to bring more low-emissions vehicles to Australia. FCAI CEO Tony Weber emphasized the need for regulatory stability and expanded public charging infrastructure to sustain investment and consumer confidence amid global economic uncertainty.
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