Australian electric car market wanes as more buyers flock to hybrids and plug-ins

Last month’s new-vehicle sales data has revealed interest in electric vehicle (EVs) is weakening, with buyers turning instead to hybrids – both closed-loop and plug-in.

In January, 3822 electric cars were sold, down 21.7 per cent compared to the same month last year.

And as a total of the overall market, EVs represented just 4.3 per cent of the 87,625-strong market – the lowest it has been for years.

However, a deluge of new models – largely from China in the more affordable space – are set for market introductions in the first quarter of the year, while the top-selling Tesla Model Y will also be refreshed imminently.

The ongoing cost-of-living crisis, as well as uncertainty around resale value, could also play a part in the dulling electric car interest.

Tesla, the leading EV brand in Australia, sold 33 per cent fewer models than it did this time last year, with just 739 new registrations.

The Model Y was again its best-seller, at 465 units, but the Model 3 found just 274 new homes (down 62%) last month and dropped to fourth place.

However, the current Model Y is now in runout, with a facelifted model revealed – with an accompanying price rise – in January with first deliveries set for May.

The second-best selling EV was again the MG 4, with 440 notches to its name, 18.1 per cent down over the previous year.

Kia’s EV5 has also made in-roads into the market with 289 sales, outpacing the established EV6 (52, down 73.9%), EV9 (22, down 53.2%), and Niro (16).

BMW EVs accounted for three out of the Top 10 spots, with the iX1 (123) in fifth place, the i4 and iX2 (108 units each) in equal eighth.

Audi's new Q4 e-tron also performed strongly ahead of its official launch later this month with 121 sales, while the Hyundai Ioniq 5 notched 109 sales for seventh position.

Rounding out the Top 10 is the BYD Atto 3, with 105 sales, but 77.4 per cent down.

Out of the Top 10 list, and discounting models that have launched in the last 12 months, only the Model Y and BMW i4 have broken new ground this year, up 21 and 16 per cent respectively.

However, while the electric car market cools, local buyers are increasingly turning towards hybrids and plug-in hybrid electric vehicles (PHEVs).

Overall, 20,566 electrified cars were sold last month, excluding mild-hybrid systems, making up 23.7 per cent the overall market.

That compares to last January where only 15,694 electrified sales were notched – or 17.5 per cent of the 89,782 total.

Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.

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