Australia’s automotive landscape is changing. For the first time, internal combustion engine (ICE) vehicles have dropped below 70% of the market share, signaling a seismic shift in consumer preferences. As electric vehicle (EV) and hybrid sales soar, the country seems to be speeding towards a greener future—albeit with a few bumps along the road.
EV Sales Hit Record Heights
In the September 2025 quarter, EVs accounted for a record 9.7% of all new car sales in Australia, marking the highest proportion ever recorded. It’s clear that more Australians are choosing cleaner, more efficient vehicles. The Australian Automobile Association (AAA) revealed that in total, 29,298 battery-electric vehicles (BEVs) were sold—an increase of 54 vehicles from the previous quarter’s record. Hybrids and plug-in hybrids also saw substantial growth, with 49,929 hybrids and 12,460 plug-in hybrids sold in the same period.
This shift is not just a flash in the pan. It represents a long-term trend. Just two years ago, EVs were a niche market, with ICE vehicles still holding the lion’s share of sales. But now, EVs, hybrids, and plug-ins are becoming mainstream, and more people are rethinking their driving habits.
A Decline in Petrol-Powered Cars
On the flip side, the sale of traditional petrol-powered cars has significantly fallen. In the September quarter, only 210,458 internal combustion cars were sold, down from 226,306 in the previous quarter. The share of petrol-powered vehicles has now dipped below 70%, dropping to 69.65%. In states like New South Wales and Victoria, the drop is even more dramatic, with ICE vehicles making up less than 69% of new car sales. In the Australian Capital Territory, petrol-powered cars represent less than half of all new cars sold. It’s a clear indication that Australians are embracing electrified cars.
This isn’t just a shift in vehicle preferences; it’s also a shift in values. As climate change concerns mount and fuel prices rise, more drivers are opting for environmentally friendly and cost-efficient alternatives. It’s not just about saving the planet (though that’s a big part of it) — it’s also about saving money on the rising costs of petrol and ongoing maintenance for older, gas-guzzling cars.
The Need for More Support
However, this transition is not without its challenges. The Electric Vehicle Council has called on state and territory governments to reinstate EV incentives, many of which were slashed earlier this year. For instance, Western Australia ended a popular $3,500 rebate for EV buyers, which had been a strong motivator for many consumers. Aman Gaur, head of policy at the Electric Vehicle Council, emphasized that government support is crucial for the national effort to transition to greener vehicles.
“We can’t have a successful transition with just one level of government doing the heavy lifting,” he said to The Guardian. Although the federal government has put policies in place, including fuel efficiency standards and tax exemptions, more needs to be done to ensure Australians can afford to make the switch to electric.
Looking Ahead
While EV sales are accelerating, there’s still a long way to go for Australia to meet its climate targets. The Climate Change Authority estimates that EVs must account for half of all new vehicle sales by 2035 to meet even the “lower end” of the country’s emission reduction goals. Despite this, the government has yet to set a clear target for EV sales, leaving many advocates wondering if more could be done.
As the momentum builds and more Australians embrace electric vehicles, it’s clear that the shift away from petrol cars is more than just a trend—it’s a fundamental change in how we think about transportation. While the road to a fully electrified fleet may be long, one thing is for certain: the days of the petrol car’s dominance are numbered.
