Australia’s electric vehicle (EV) market has achieved another significant milestone, with battery-electric cars accounting for a record 16.4 per cent of all new vehicle sales in April 2026. This data, released by the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council (EVC) this week, indicates a sustained and accelerating shift towards zero-emission transport, driven by increasing model availability, volatile fuel prices, and ongoing government support.
The April 2026 figures represent the second consecutive month of record EV market share, improving on March’s 14.6 per cent and more than doubling the 6.6 per cent recorded in April 2025. A total of 15,459 battery-electric vehicles were sold last month, a 157 per cent increase year-on-year.
BYD Surges, Overtaking Tesla in Key Segments
A notable development in April’s VFACTS report is the strong performance of Chinese manufacturers, particularly BYD. For the first time, BYD emerged as the second-highest selling brand overall in Australia, behind only Toyota. The company reported a record 7,702 unit sales in April, up 140.2 per cent year-on-year, capturing 8.3 per cent of the total market.
BYD’s success was spearheaded by its new mid-size family SUV, the BYD Sealion 7, which became Australia’s best-selling EV for the month with 1,780 sales. This performance saw it surpass the Tesla Model Y, which recorded 822 registrations in April, placing it fourth among EVs.
Other Chinese brands also showed significant growth, with Geely’s EX5 recording 1,202 deliveries and Zeekr’s 7X SUV achieving 973 sales. Collectively, Chinese manufacturers accounted for approximately 30 per cent of total new vehicle sales in Australia during April.
“The increase in supply of EVs since the introduction of the New Vehicle Efficiency Scheme, combined with higher petrol prices and the continued support provided through the Federal Government’s Electric Car Discount, is now translating into stronger demand,” said FCAI chief executive Tony Weber.
Federal Incentives Extended to Support Uptake
The Federal Government’s Electric Car Discount, which includes a Fringe Benefits Tax (FBT) exemption for eligible battery electric vehicles, has been confirmed to continue. While a phased transition is set to begin in April 2027, the full FBT exemption will largely remain in place for EVs priced under AUD $75,000 until that date. EVs priced between AUD $75,000 and the fuel-efficient Luxury Car Tax (LCT) threshold (currently AUD $91,387 for 2025-26) will receive a 25% FBT discount from April 2027. All EVs will incur some FBT from April 2029, albeit at discounted rates.
This extension provides crucial certainty for consumers and businesses considering the switch to electric, particularly for those utilising novated lease arrangements. For an EV valued around AUD $50,000, the FBT exemption can translate to annual savings of between AUD $3,200 and AUD $4,700, depending on individual tax rates.
Shifting Market Dynamics and Declining ICE Sales
The surge in EV sales comes amidst a broader shift in the Australian automotive market. While overall new vehicle sales in April 2026 were up 2.2 per cent compared to the same month last year, sales of purely petrol-powered cars declined by 30.1 per cent year-on-year, and diesels were down 21.7 per cent.
Hybrid vehicle sales also saw a significant boost, rising 27.1 per cent to 18,162 units, driven in part by strong demand for models like the new Toyota RAV4. Plug-in hybrids (PHEVs) experienced an even sharper increase of 270 per cent year-on-year, reaching 9,628 sales.
This diverse growth in electrified vehicles highlights a clear consumer trend away from traditional internal combustion engine (ICE) vehicles. The increasing availability of more affordable EV models, as discussed in our guide to the Cheapest Electric Cars Available in Australia in 2026, is playing a critical role in expanding market accessibility.
Top Selling EV Models in April 2026
| Rank | Model | Sales (April 2026) |
|---|---|---|
| 1 | BYD Sealion 7 | 1,780 |
| 2 | Geely EX5 | 1,202 |
| 3 | Zeekr 7X | 973 |
| 4 | Tesla Model Y | 822 |
| 5 | Kia EV5 | 794 |
Source: FCAI and Electric Vehicle Council data
Charging Infrastructure Demands Grow
The rapid uptake of EVs naturally places increased demand on Australia’s charging infrastructure. FCAI chief executive Tony Weber emphasised that stronger EV uptake necessitates a significant step-change in both public and private investment to ensure charging infrastructure keeps pace.
As more Australians embrace electric vehicles, understanding the costs and options for charging at home becomes increasingly important. Our guide on How Much Does an EV Home Charger Cost to Install in Australia 2026? A Guide to Types, Prices & Installation provides valuable insights for new EV owners.
The continued growth in EV sales, particularly from a wider range of brands and models, indicates that Australia’s transition to a cleaner transport future is gaining significant momentum. The market is evolving rapidly, offering consumers more choice and driving competition, which is ultimately beneficial for accelerating the nation’s energy transition.
Looking ahead, the sustained demand for EVs and the ongoing policy support are expected to further solidify electric vehicles as a mainstream choice for Australian consumers. This will continue to reshape the automotive landscape and necessitate strategic investments in both vehicle supply and supporting infrastructure.