Australians are buying more cars than ever but are increasingly choosing hybrid vehicles over petrol-powered cars due to rising costs at the bowser, new data by the Australian Automobile Association shows.
Quarterly vehicle sales data released on Monday revealed a further uptick in demand for hybrid vehicles, a trend the industry believes reflects both the rising cost of living, as well as range anxiety and concerns over a lack of charging infrastructure affecting purely electric vehicles.
Broadly, total sales across all engine types rose by 10.25% in the three months to 30 June, from 292,944 to 312,889. This follows sales in 2023 setting an all-time record, with more than 1.2m vehicles delivered, according to the figures based on Federal Chamber of Automotive Industries data.
Sales of traditional petrol-fuelled cars, known as internal combustion engine (ICE) vehicles, rose by 3.13% over the quarter. However, because total sales of all vehicle types rose at a faster rate, the market share of ICE vehicles dropped from 78.16% to 75.47%.
The move from traditional ICE vehicles towards greener alternatives has been gradual but pronounced, with market share decreasing from 86.4% to 75.47% over the past 18 months.
Battery electric vehicles declined by 0.78%, from 25,552 to 25,353, representing a decline in market share from 8.72% to 8.10%. Battery electric vehicles had a peak in market share in the first quarter of 2024 when they represented 8.72% of national sales.
Hybrid vehicles continued to grow in popularity. Sales grew by 33.49%, with 46,727 sold in the three months to the end of June compared with 35,003 in the previous quarter.
The market share of hybrid vehicles rose from 11.95% to 14.93% in the quarter.
Plug-in hybrids – which have a battery that can be charged externally to limit reliance on petrol – also increased, gaining 1.49% market share in the three months to 30 June.
While this was up significantly from the previous quarter’s share of 1.17%, it was only slightly above the market share in the final quarter of 2023, when plug-in hybrids represented 1.47% of sales.
Just five hydrogen fuel-cell electric vehicles were sold nationally in the three months to 30 June 2024, up from two sales in the previous quarter.
Hybrids have now outsold electric vehicles over four consecutive quarters.
Aman Gaur, head of legal, policy and advocacy at the Electric Vehicle Council, said the overall trend that Australians were taking up more electric and hybrid options represented a “monumental achievement” from where the market was five years ago.
Gaur said “the desire to save at a time when the cost of living is high is in part driving the interest in hybrids”, but acknowledged consumers wanted more announcements from governments and businesses in charging infrastructure to reassure them that they wouldn’t be caught short by electric vehicles.
Gaur added that he expected sales of purely battery electric vehicles to rise once the federal government’s new vehicle efficiency standard begins to influence the market from next year, which should boost local supply, given the demand for more economical cars was already there.
“It’s definitely better to buy a vehicle that’s going to cost you less in the long run, and they’re helping reduce transport emissions overall,” Gaur said.
Australia’s cheapest electric car is now available for $35,000, but there is a months-long gap between ordering and delivery due to supply issues and other vehicle types are ready and waiting for consumers.
In addition to supply issues, electric vehicles in Australia are routinely being written off after minor accidents, as a shortage of skilled mechanics and parts, as well as outdated laws, leads Australian insurers to scrap EVs prematurely instead of repairing them.
