The Australian Automobile Association (AAA) says sales of hybrid vehicles continued to exceed those of electric cars in the last three months of 2024 despite losing market share amid a slowdown in car sales nationwide.
While hybrids’ market share fell from 16.70% in the September 2024 quarter to 14.83% in the December 2024 quarter, they still outsold EVs, which increased their market share to 7.42% of sales—up from 6.59%.
The new data comes in the AAA EV Index online data dashboard, which analyses all new light vehicle sales nationwide. Its latest quarterly update shows the December quarter of 2024 had the lowest light vehicle sales since the January quarter of 2023.
In national new light vehicle sales:
• Total sales (all engine types) fell 0.62% (from 289,098 to 287,294)
• ICE sales rose by 0.63%, and ICE market share rose from 74.17% to 75.11%
• Battery electric vehicle sales rose 11.93% (from 19,057 to 21,331), which is still lower than the sales and market share achieved in the first half of 2024
• Plug-in hybrid (PHEV) sales continued to rise – up 3.18% from Q3 with market share rising from 2.53% to 2.63%
Hybrid sales fell in all states and territories except for Tasmania. Nationally, they were down 11.73% from Q3 2024 (from 48,282 to 42,618). This reduction of 5664 vehicles was primarily due to weaker sales for Toyota, which were down 6337 in Q3.
The figures cover the final three months before the Federal Government implemented its New Vehicle Efficiency Standard, which is designed to drive more excellent sales of EVs and more fuel-efficient vehicles. The scheme took effect in January, and reporting of its effects will start in July.
Trends
Over the past two years, car sales have fluctuated significantly quarterly, producing a clear growth trend for hybrids and indicating that the availability of Toyota models might substantially impact the hybrid market.
BEV sales and market share have peaked, but both metrics are still below their Q2 2024 records. Total car sales were lower in the third and fourth quarters of 2024 than in the preceding five quarters.
In the first half of 2023, BEVs outsold hybrids, but since then, hybrids have outsold BEVs in six consecutive quarters. Hybrids are now outselling BEVs even in the ACT, which has long been Australia’s most substantial BEV market.
PHEV sales are growing strongly but from a low base. They are most substantial in the ACT (6.35% market share in Q4 2024). Tasmania and the NT had the lowest Q4 PHEV market shares—1.32% and 1.48%, respectively. The five largest states had PHEV market shares between 2.48% (in Queensland) and 2.80% (in Victoria), which is in line with the national market share of 2.63%.
Incentives and market share trends
Plug-in hybrids are currently exempt from fringe benefits tax, which can save buyers thousands of dollars when buying a new car under a novated lease. But this benefit will end in April 2025.
Government rebates for BEV purchases have ceased in all states and territories except Western Australia, which will cease this benefit in May.
Fuel types and vehicle types – Q4 2024
Medium SUVs remain Australia’s most popular vehicle segment. They dominate the hybrid, BEV and PHEV markets, but among ICE vehicles, they are the fourth-most popular segment behind 4WD utes, small SUVs and large SUVs.
In the December quarter, more than half (69.95%) of new SUVs sold were ICE. About a fifth (19.34%) were hybrids, 6.61% were BEVs, and 4.10% were PHEVs. Of the 7,556 PHEVs sold in the December quarter, 5962 (or 78.90%) were medium SUVs.
ICE vehicles still dominated all market segments except for medium cars, with 4,812 (58.05%) BEVs, 22.52% ICE, 18.78% Hybrids, and 0.64% PHEVs.
ICE also accounted for the majority of sales of small cars (67.67% market share in the December quarter) and large cars (64.99%). More than 99% of utes and vans sold were ICE vehicles.
EV Index
The AAA EV Index quantifies Australia’s vehicle technology transition. It collates information from multiple national, state, and territory sources, including information provided by the Federal Chamber of Automotive Industries and the Electric Vehicle Council, which is used with the FCAI’s and the EVC’s permission.
The Index is intended to enable consumers, businesses, and fleet managers to see the trends transforming the national vehicle market. Its online dashboard covers light vehicles of all fuel types.
For more information – including state and territory sales figures – see evindex.au.
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