Petrol car sales plunge 36% as EVs surge across Australia

Australia's petrol-powered car market is losing ground at a remarkable rate, with sales plunging almost 36% in October as electric vehicles captured nearly a quarter of all new vehicle sales.

New figures from the Federal Chamber of Automotive Industries show electric vehicles accounted for 23% of sales, almost three times their 7.3% share a year earlier. The shift comes as Australia's overall new vehicle market continues to grow, with 103,325 vehicles sold in October, up 3.8% year-on-year.

Chinese-built vehicles now account for more than a third of Australia's new vehicle market, with brands including BYD, Geely, MG and Chery challenging the established automotive order. Petrol vehicle sales meanwhile, fell 36% compared with October 2025, while diesel sales declined 14.7%, according to the FCAI.

The figures point to a significant change in Australia's automotive market, with buyers increasingly considering alternative options as competition intensifies and manufacturers expand their electric and hybrid portfolios.

FCAI chief executive Tony Weber said consumers were benefiting from greater competition across brands, models, technologies and price points.

“Australia's open and competitive market has put consumers in the driver's seat, with more choice across brands, technologies, features and price points,” Weber said.

Competition, elevated fuel prices, instability in the Middle East and federal government tax concessions have all contributed to stronger demand for battery electric vehicles throughout 2026, according to the industry body.

“Consumers are making rational choices and are attracted to options that reduce their costs,” Weber said. “Despite continuing pressure on household budgets and higher borrowing costs in 2026, the October result shows there is extraordinary resilience in new vehicle demand.”

Chinese brands accelerate

Perhaps the most striking development beyond the shift towards electric vehicles is the changing competitive landscape. China was Australia's largest source of new vehicles in October, accounting for 36.3% of the market, ahead of Japan at 23.3%, and South Korea at 9.2%.

Toyota remains Australia's dominant automotive brand, selling 20,649 vehicles during the month and commanding a 20% share of the market. But BYD has emerged as a formidable challenger.

The Chinese manufacturer recorded 10,025 sales in October, up from 3,959 a year earlier, representing growth of approximately 153%.

That result puts BYD comfortably in second place behind Toyota, ahead of established manufacturers Ford, Kia, Mazda and Hyundai.

BYD's market share has more than doubled, rising from 4% in October 2025 to 9.7% this year.

Its year-to-date performance is equally striking. BYD has sold 86,639 vehicles through October, compared with 41,882 during the same period last year, an increase of approximately 107%.

Toyota remains well ahead on 173,593 year-to-date sales, although its market share has fallen from 20% to 17%.

Other Chinese brands are also making significant gains. Geely sold 4,365 vehicles in October, up from just 704 a year earlier, while MG increased sales from 3,556 to 4,676 and Chery grew from 3,550 to 4,317.

GWM maintained a substantial presence with 4,417 sales, broadly in line with its October 2025 result.

The growing presence of Chinese manufacturers is creating a more competitive environment for established automotive brands, many of which have spent decades building market share, distribution networks and consumer loyalty in Australia.

Australia's favourite cars are changing

The October model rankings provide another indication of how the market is evolving. Toyota's HiLux remains Australia's best-selling vehicle, with 5,954 sales, followed by the Ford Ranger at 4,841 and Toyota RAV4 at 4,718.

But Chinese models now occupy five positions in the top 10. BYD's Sealion 7 ranked fourth with 2,524 sales, up 88.2% year-on-year, while the BYD Atto 2 entered the rankings with 1,943 sales.

The BYD Shark 6 recorded 1,843 sales, an increase of 72.2%, while Geely's EX5 surged from 343 sales a year earlier to 1,789, growth of 421.6%. Chery's Tiggo 4 Pro also featured prominently, recording 2,178 sales.