Australia’s new vehicle market recorded 105,058 VFACTS sales in March, a 3.3 per cent decline on the same month last year, but the headline story was the surge in battery electric vehicle demand which reached its highest monthly share on record.
A total of 15,839 BEVs from all sources — including Tesla and Polestar, which report separately through the Electric Vehicle Council — were sold during the month, accounting for 14.6 per cent of the combined market. That is nearly double the 7.5 per cent share recorded in March 2025. The jump came amid ongoing disruption to global fuel supply caused by conflict in the Middle East and continued uncertainty around the federal government’s review of the fringe benefits tax concession for EVs.
Plug-in hybrid sales also continued their strong run, with 8,215 units sold in March, up 40 per cent month-on-month and 40 per cent year-on-year according to the Australian Automotive Dealer Association. BEV sales were up 42 per cent on February and 92 per cent year-on-year, the AADA said, accounting for 12 per cent of total new vehicle sales year to date. Including VFACTS and EVC data, the AADA put the combined March market at 108,703 vehicles.
Federal Chamber of Automotive Industries chief executive Tony Weber said the result was encouraging but cautioned against reading too much into one month’s data.
“It is too early to determine whether this represents a structural shift in the market. More consumers are considering EVs due to the disruption to fuel supply caused by conflict in the Middle East, along with the review into the fringe benefits tax concession for EVs,” Weber said.
“The automotive industry would welcome a sustained shift to EVs, given its substantial investment in bringing more than 100 EV models to the Australian market and the industry’s efforts to meet ambitious NVES targets.
“A long-term shift to EVs will require Australian governments to sharpen their focus on public charging infrastructure, particularly in regional areas and locations where home charging is not practical. Ensuring infrastructure keeps pace with consumer demand will be critical to enabling sustainable growth in EV adoption beyond short-term influences.”
Dealers see shift in buyer behaviour
AADA chief executive James Voortman said dealers were seeing the change first-hand.
“The AADA is seeing a clear shift in consumer preferences this month, with many buyers who may have previously been on the fence now choosing to buy an electric vehicle,” Voortman said.
“Rising fuel prices have brought forward decisions for a lot of consumers, particularly those weighing up the long-term running costs of their next vehicle.
“The key question now is whether this is the beginning of a more sustained shift in the market, something we will only know in the coming months. What this month’s sales figures prove is that it will be Australian consumers that dictate the pace of the transition.”
Tesla and Polestar surge
Electric Vehicle Council data released ahead of the VFACTS report showed Tesla and Polestar combined for 3,645 sales in March, up 21.1 per cent year-on-year and 6.6 per cent on February. For the first quarter, the two brands sold 7,725 vehicles, a 40 per cent increase on the 5,549 recorded in the same period last year.
EVC chief executive Julie Delvecchio said EV drivers were saving approximately $3,000 annually on fuel costs and highlighted Australia’s fuel security concerns amid rising global oil market volatility. She cautioned against scaling back the Electric Car Discount currently under policy review, arguing its removal would eliminate consumer savings during a period of cost-of-living pressure.
Tesla Australia country director Thom Drew said strong customer demand had cleared local inventory, with increased supply planned for the second quarter. Polestar Australia managing director Scott Maynard reported test drive bookings had tripled within a fortnight, with showroom traffic matching typical sale event levels.
Commonwealth Bank lending data cited by the EVC showed a 161 per cent increase in EV finance demand since the start of March. Second-hand EV sales tracked by Pickles were up 60 per cent from February, with EV website searches jumping 163 per cent month-on-month. Used EV pricing showed 82 per cent selling under $50,000 and 43 per cent under $30,000.
Brands and models
Toyota was the VFACTS market leader in March with sales of 16,574, followed by Kia (7,320), BYD (7,217), Mazda (7,156) and Ford (7,149). Toyota led Kia with a margin of 9,254 vehicle sales and 8.8 market share points.
The top VFACTS models were the Ford Ranger (4,452), Toyota HiLux (4,167), Nissan X-Trail (2,438), Mitsubishi Outlander (2,318) and Hyundai Kona (2,316).
Segments
The overall market decline of 3,548 units was spread unevenly across segments. The SUV segment was the sole gainer, up 582 units or 0.9 per cent on the prior year.
Passenger vehicles fell 7.5 per cent, down 1,062 units. Light commercials dropped 10.5 per cent, losing 2,570 units, and heavy commercials were down 12.0 per cent, shedding 498 units. Both March 2025 and March 2026 had 25.5 selling days, translating to a decrease of 139.1 vehicle sales per day.
