The new car market fell -1.2% in May from a year ago, bolstered by strong demand for EVs within that decline. ICE is out

Australians are rapidly changing the type of vehicles they buy, with new VFACTS data released today showing a significant shift away from petrol and diesel models toward electrified alternatives.

Battery electric vehicles accounted for a record 20 per cent of all new vehicle sales from all sources during May 2026, marking the highest monthly market share recorded to date.

VFACTS data shows Australians purchased 100,206 new vehicles during May, with overall sales declining by 4.8 per cent compared with May 2025.

Electrified vehicles more broadly, including battery electric vehicles, conventional hybrid vehicles and plug-in hybrid vehicles, accounted for 46 per cent of new vehicle sales from all sources during the month.

These results demonstrated the pace of consumer adoption of lower-emission technologies in response to an international shock.

“The shift is particularly evident in the SUV segment, where consumer preferences are changing rapidly. Today’s SUV buyer is increasingly choosing hybrid, plug-in hybrid and electric options,” an FCAI spokesperson said.

In the dominant SUV segment, EVs were up 167 per cent compared with May 2025 and plug-in hybrids increased by 377 per cent, while sales of petrol SUVs declined by 31 per cent and diesel models fell by 41 per cent over the same period.

Toyota remained Australia’s leading brand during May with 16,342 sales, followed by BYD (8,211), Ford (7,195), Hyundai (7,007) and Kia (6,761). Emerging brands continued to record strong growth, reflecting increasing competition across the market.

BYD increased sales by 155 per cent compared with May 2025, while Omoda Jaecoo recorded growth of 729 per cent and Geely increased sales by 416 per cent.

Stronger EV adoption places greater pressure on charging infrastructure.

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