The electric vehicle (EV) market in Australia has hit a major milestone in 2025, showing explosive growth. While Tesla continues to dominate, there’s a clear sign that the tides are turning, with BYD rapidly gaining ground. The race is on, and it’s not just about who’s leading today, but who will stay on top tomorrow. The surge of new players, shifting trends, and unexpected outcomes make the EV game more exciting than ever.
2025 EV Market Snapshot
In 2025, a total of 103,269 EVs were sold in Australia, marking a 13.1% increase compared to the previous year. That means 8.3% of all new vehicles delivered last year were electric, up from 7.4% in 2024, explains Carexpert. Despite Tesla’s long-standing dominance in Australia, it’s clear that the Chinese brand BYD is nipping at its heels. Tesla still secured the top spot in 2025, but with a noticeable 24.8% sales drop, the competition has heated up. In fact, BYD surged forward, with a jaw-dropping 77.3% increase in deliveries, ending the year just 3,569 units behind Tesla.
Tesla vs. BYD: A Changing of the Guard?
For years, Tesla has been the unquestioned leader in the EV sector globally, but in Australia, its market share shrank to 30% in 2025, compared to 42% in 2024 and 53% in 2023. Meanwhile, BYD grew to 24.5% of the market, making a significant leap. This marks a dramatic shift. But even though BYD is growing fast, Tesla’s been pretty quick to roll out new models like the Model Y, which remained Australia’s best-selling EV in 2025 with 22,239 units sold.
Still, Tesla can’t afford to rest on its laurels, especially with models like the BYD Sealion 7 showing strong promise. Launched in early 2025, the Sealion 7 outsold the Tesla Model 3 by more than two to one, landing the model in second place.
The Rise of New Players: Kia, Geely, and Others
The story doesn’t stop there—Kia’s EV5 saw an impressive rise, securing the fourth spot, while the Geely EX5, despite being a newcomer, grabbed the fifth position. That’s the kind of rapid shift we’re seeing in the market right now. Established brands like BMW and Volkswagen are still making their mark, but they’re finding themselves increasingly overshadowed by these nimble new entrants.
Tesla’s Still in the Game—For Now
Despite Tesla’s overall decline, it still remains the brand to beat in Australia, with models like the Model Y holding steady. But with BYD and Kia pushing hard, the future looks far less predictable. In fact, with the competition growing fierce, we might be seeing the beginning of a new EV era in Australia—one where the usual players no longer dominate the roads.
What’s Next for Australia’s EV Market?
One thing’s for sure: the EV landscape in Australia is changing fast, and 2026 could look very different from today. With the pace at which new models are being introduced and EV adoption on the rise, the question now isn’t just who will be on top, but how long they can hold their ground.
