Electric vehicles have overtaken petrol-powered cars in Australia for the first time, with new figures showing record August sales driven by cheaper running costs and a wider selection of affordable models.
More than 27,000 battery electric vehicles (BEVs) were sold across the country last month, representing a record 24.9 per cent of total new vehicle sales.
The milestone marks a 171 per cent surge compared to August 2025. Notably, BEVs comfortably outsold pure petrol cars, which recorded 25,824 sales over the same period.
When combined with plug-in hybrids and conventional hybrids, low- and zero-emission models accounted for over half of all new vehicles handed over to Australian motorists during August.
Financial incentives are playing a central role in driving regional and suburban adoption.
According to analysis from the National Automotive Leasing and Salary Packaging Association (NALSPA), working Australians utilising the federal government’s Electric Car Discount in the first six months of this year are projected to save $76 million in fuel and running costs in 2026 alone.
Outer-suburban centres are leading the surge, with postcodes in Tarneit, Werribee, Kellyville, Marsden Park, and Baulkham Hills recording the highest uptake of the tax discount.
Minister for Climate Change and Energy Chris Bowen said the result was a structural turning point for the local automotive sector.
“This is a landmark moment as electric vehicles have overtaken petrol cars for the first time in Australia,” Bowen said.
“Seven years later, they’re Australia’s most popular type of new car.
“Australians have seen through the scare campaigns and are voting with their wallets for cars that are cheaper to run, cleaner and reduce their exposure to international petrol prices shocks.”
Bowen added that federal initiatives, including the New Vehicle Efficiency Standard, fringe benefits tax exemptions, and expanding charging infrastructure, are insulating drivers from volatile global petrol prices while providing greater access to diverse EV models.
