One In Eight Cars Sold In Australia Now Plugin

Australia’s automotive sector remains strong, with 109,425 light vehicles sold in May 2025. Electric vehicles (EVs) made up 12% of that total, with 10,065 battery electric vehicles (BEVs) and 3,081 plug-in hybrid electric vehicles (PHEVs) delivered.

Although EV deliveries are slightly behind last year’s pace, industry observers remain optimistic. In the first five months of 2025, Australians bought 33,976 EVs, down from 40,966 in the same period last year. Analysts expect this gap to close later in the year as supply normalises and more models hit the market.

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Tesla Model Y Leads BEV Sales

The Tesla Model Y saw a sharp increase in May, going from just 280 units in April to 3,580 in May. This surge puts the Model Y in fourth place overall in the Australian market, trailing only the Toyota Hilux, Ford Ranger, and Toyota RAV4.

Here’s how the top 10 battery electric models performed in May:

It’s worth noting that both the Kia EV5 and Geely EX5 are new to the Australian market and already gaining traction. Sales for the MG S5 and Hyundai Inster also showed early promise, with 106 and 101 units sold respectively.

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PHEVs Gain Ground With Help From Tax Incentives

PHEV sales in April spiked due to businesses rushing to take advantage of Fringe Benefits Tax exemptions. That month saw 6,932 PHEVs sold, falling to 3,081 in May. While the drop was expected, plug-in hybrids remain vital for brands with a heavy commercial vehicle presence.

In particular, the BYD Shark and Sealion 6 continue to play a key role in helping manufacturers meet Australia’s upcoming New Vehicle Efficiency Standard (NVES). Ford, for example, will rely heavily on its Ranger PHEV to reduce fleet emissions.

Ford’s decision to prioritise towing and payload over range could put the Ranger at a disadvantage against newer Chinese options offering more value.

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Charging Infrastructure Expands Rapidly

EV charging infrastructure is improving quickly across Australia. Bunnings is now rolling out EV chargers at its stores, with 14 already operational and many more coming.

One major route that has seen big improvements is the New England Highway. Once a difficult drive for EVs, it now has high-speed chargers at regular intervals. This change has made EV road trips more practical and stress-free.

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Cybertruck Inches Closer to Australian Market

Tesla’s Cybertruck has completed a tour across Australian cities, fuelling speculation about a local launch. According to Tesla Australia Country Director Thom Drew, only minor changes would be needed to meet Australian Design Rules.

These include:

• Adjustments to bumper widths
• Updated lighting systems
• Conversion to right-hand drive

The Cybertruck is expected to cost $5,000 to $10,000 more than its US equivalent.

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EV Industry Outlook Remains Positive

EV adoption in Australia is still on a solid upward path. HEV sales reached 17,089 in May, dominated by Toyota models. The company also sold 371 units of the BZ4X, while its partner Subaru delivered 111 Solterra EVs.

Professor Ray Wills of the University of Western Australia believes the groundwork has been laid for a significant shift. He predicts that cheaper EVs from China and locally assembled models in Europe will drive a surge in demand by 2026.

Looking globally, EV sales grew 30% year-on-year in May, with 600,000 units sold across the "Rest of the World" category, which includes Australia. That momentum is expected to push annual global EV sales past 23 million by the end of 2025.

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Key Takeaways

• 12% of new vehicles sold in May had a plug
• Tesla Model Y was Australia’s best-selling BEV in May
• PHEV sales dipped but remain critical due to emission targets
• Charging infrastructure continues to improve across major routes
• Cybertruck’s Australian launch appears closer than ever

With new models, expanding infrastructure, and supportive policies, the EV market in Australia is heading for a strong finish to the year.