Electric Car Sales Fall, PHEV Sales Skyrocket and Tesla Continues to Struggle

Sales of electric vehicles (EVs) dropped sharply by 43.8% last month, reaching 5,684 units, primarily driven by another lackluster performance from Tesla, whose deliveries plummeted 71.9%.

According to data from the Electric Vehicle Council (EVC), Tesla deliveries dropped by a staggering 71.9% compared to February 2024, with just 1,592 vehicles sold.

In contrast, deliveries of plug-in hybrid vehicles (PHEVs) skyrocketed by 346.1% to 4,871 units, spurred by strong growth from BYD's PHEV models.

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Electric Car Sales Breakdown

Overall electric car sales were primarily impacted by the substantial decline in Tesla sales.

Among the top five electric vehicle (EV) models, the Tesla Model Y led with 924 sales, doubling January’s tally of 465. However, this figure remains well below the 2,072 units sold in February 2023,.

Securing second place, the Tesla Model 3 saw a significant rebound with 668 sales in February, up sharply from 274 in January, though still trailing the previous year’s performance during its refresh launch and far below its peak of 2,671 sales in February 2023.

The budget-friendly MG4 claimed third position with 451 sales, reflecting its affordability and steady demand. Kia followed closely in fourth with 400 EV5 sales, up from 289 in January. Rounding out the top five was BYD’s new midsize SUV, the Sealion 7, which debuted with 157 sales. Notably, not all EV models are currently available in the market.

Beyond the top ranks, BYD’s Atto 3 was its only other model in the top ten, selling 138 units. Its siblings, the Dolphin and Seal, continued to struggle with 44 and 56 sales, respectively. Meanwhile, Zeekr made its sales debut as the Zeekr X entered the top ten for the first time with 96 units sold.

Breaking Down Tesla's Slumping Sales

The fall in sales has been sharp across Tesla’s two major models:

• Model Y: 924 deliveries in February, down 55.4% year-over-year.
• Model 3: Just 668 units delivered, marking an 81.4% decline.

For the first two months of 2025, Tesla’s Australian sales stand at 2,331 vehicles, down 65.6% compared to the same period in 2024. January was particularly dire, with Tesla registering only 739 deliveries, making it the brand’s worst month in Australia since July 2023.

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What’s Behind Tesla’s Sales Collapse?

There are multiple factors at play in Tesla’s steep decline. Some industry insiders argue that inventory issues and anticipation for the refreshed Model Y—expected to arrive in May—are partly to blame. However, this doesn’t fully explain the dramatic drop in Model 3 sales, which received a major update just last year.

Beyond supply chain issues, Tesla faces mounting competition from Chinese EV brands like BYD, which offer high-tech electric sedans and SUVs at competitive prices. The BYD Seal, for example, has emerged as a formidable rival to the Model 3, giving Australian consumers more options in the mid-range EV market.

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PHEV Sales Skyrocket

While petrol, diesel, and electric vehicle sales declined, PHEVs and hybrids experienced significant growth. Both categories outperformed February 2024 figures, with hybrids alone rising 34.7%. Meanwhile, petrol and diesel vehicle sales fell by 13% and 16.1%, respectively, to 40,496 and 26,863 units.

The plug-in hybrid BYD Shark 6 ute made a striking debut in the top 10 rankings during its first month of tracked deliveries, with 2,026 units delivered to customers, the third best selling 4x4 ute in the country.