Electric vehicles reached a record share of the Australian new-car market in May 2026, as buyers moved away from petrol and diesel models during the fuel crisis linked to the war in the Middle East.

VFACTS recorded 100,206 new-vehicle sales for May, down 4.8 per cent on May 2025, while the Electric Vehicle Council recorded a further 6681 Tesla and Polestar battery-electric deliveries.

Combining those two reporting streams gives a market of 106,887 vehicles for May, down 2.3 per cent compared with the same combined basis a year earlier.

Battery-electric vehicles totalled 21,303 sales across the combined market, equal to 19.9 per cent, or about 20 per cent, of all new-vehicle sales.

Electrified vehicles, covering EVs, conventional hybrids and plug-in hybrids, totalled 49,642 sales, equal to 46.4 per cent of the combined May market.

That compares with 30,235 electrified vehicles on the same combined basis in May 2025, an increase of 64.2 per cent.

The shift aligns with recent CarSauce Buy enquiries, where interest in electrified vehicles has risen during the current fuel-price shock.

Top makes and models on a combined basis

Toyota remained the top-selling brand in the combined May 2026 market with 16,342 sales, despite being down 30.7 per cent on May 2025.

BYD was second with 8211 sales, up 154.6 per cent, followed by Ford on 7195, Hyundai on 7007 and Kia on 6761.

Tesla recorded 6433 deliveries through the Electric Vehicle Council’s May report, placing it sixth on the combined brand ranking, just behind Kia.

Polestar recorded 248 deliveries in May, up 2.1 per cent year on year, with the Polestar 4 accounting for 202 of those sales.

Tesla Model Y deliveries reached 5605 for the month, accounting for 84 per cent of the Tesla and Polestar EVs reported by the council and making it the top model on the combined May ranking.

The result follows a sharp Tesla rebound in April EV sales, when fuel-price pressure was already lifting electric-vehicle interest.

The strongest change was in SUVs, the dominant body style in Australia.

VFACTS figures show electric SUVs were up 167 per cent compared with May 2025, while plug-in hybrid SUVs rose 377 per cent.

Petrol SUV sales fell 31 per cent over the same period, while diesel SUVs dropped 41 per cent.

FCAI Chief Executive Tony Weber said the market was changing quickly as buyers responded to international pressure on fuel costs.

“The shift is particularly evident in the SUV segment, where consumer preferences are changing rapidly.
Today’s SUV buyer is increasingly choosing hybrid, plug-in hybrid and electric options,” Mr Weber said.

Tesla Country Director, Australia and New Zealand, Thom Drew said the company’s May performance was driven by repeat customers and new buyers.

“Tesla has had another strong month in May, driven by the continued loyalty of our existing customers and a growing number of Australians choosing Tesla for the first time,” Mr Drew said.

Mr Drew also pointed to the six-seat Tesla Model Y L, which starts from $74,900 plus on-road costs, as a contributor to the brand’s current momentum.

The record EV share also renews focus on public charging availability as more drivers move away from petrol and diesel vehicles.

Electric Vehicle Council Chief Executive Julie Delvecchio said May was an important marker for Australia’s EV transition.

“May 2026 is an important moment for Australia's EV transition - the strongest month on record for combined Tesla and Polestar sales,” Ms Delvecchio said.

“When fuel prices hurt, people look for alternatives.
Electric vehicles offer exactly that - no trips to the servo, no price spikes at the pump, savings of around $3,000 a year,” she said.

Mr Weber said charging infrastructure would need to keep pace with adoption.

“As the number of EVs on the road continues to grow, charging infrastructure must become more of a priority.
Continued investment and enabling policy settings will be essential to ensure infrastructure keeps pace with consumer adoption,” Mr Weber said.

“Charging infrastructure rollout must accelerate if Australia is to maintain consumer confidence and support continued uptake,” he said.

Mr Weber also said the New Vehicle Efficiency Standard was increasing the supply of lower-emission vehicles in Australia.

“The evidence increasingly demonstrates that NVES is encouraging manufacturers to bring more low emissions vehicles to Australia, increasing both consumer choice and technology availability,” Mr Weber said.

May’s numbers show the fuel crisis has accelerated an existing shift rather than reversing the broader market slowdown, with overall sales still lower than a year earlier even as EVs, hybrids and PHEVs gained ground.