Plug-in hybrid sales surge as electric car demand continues to dwindle

Electric vehicle (EV) sales continue to struggle in Australia, down 43.8 per cent last month, with customers flocking to plug-in hybrid electric vehicles (PHEVs), the latest data shows.

Adding 2026 sales, the Shark 6 was February’s best-selling PHEV model, with daylight between it and BYD’s Sealion 6 SUV on 860 units.

Combined, BYD accounted for nearly 60 per cent of all PHEV sales in February.

Boasting the longest driving range of any PHEV in Australia, GWM sold 102 Haval H6 GT PHEVs last month, for eighth position on the charts.

Rounding out the Top 10 in equal ninth position was the Audi Q5 and Cupra Formentor, the former now in runout ahead of a new-generation model landing later this year or early in 2026.

However, EVs still proved more popular overall, shifting 5684 vehicles overall, despite massive market share losses from the leading brand, Tesla.

Tesla sales dropped 71.9 per cent last month, for a total of 1592 units split between its Model Y (924, -55.4%) and Model 3 (668, -81.4%).

The Model Y continues to be the country’s best-selling EV however, dwindling stock ahead of a refresh arriving in May means the top-seller is supply limited.

Elon Musk, Tesla CEO, has also been stealing headlines for his part in US politics, with anecdotal evidence suggesting buyers are turning away from the brand due to its controversial figurehead.

As for the Model 3, its steep sales decline can be explained – somewhat – by the fact that the facelifted model arrived in late 2023, meaning this time last year sales were spiking.

However, both Teslas are under pressure from new, often more affordable, rivals from China.

MG’s MG4 and ZS came in third and fourth position respectively, with 451 and 432 sales each, but newcomer BYD Sealion 7 finished strong in fifth position with 400 sales in its first recorded month on sale.

However, hybrid cars – and more specifically Toyota models – are still the clear electrified favourite in Australia, accruing 15,348 sales last month, or 15.9 per cent of the overall market.

With a largely hybrid-only line-up, Toyota accounted for six of the top 10 spots with its RAV4 (4378), Corolla (1515), Corolla Cross (1068), Kluger (634), Yaris Cross (568), and Camry (477) in first, second, third, sixth, seventh, and eighth place on the hybrid leaderboard.

Hyundai’s Kona (879), Tucson (738), and Sante Fe (438) also proved popular last month, in fourth, fifth, and ninth positions.

The only non-Toyota and Hyundai to make the top-sellers list was the GWM Haval H6, in 10th place with 400 sales last month.  

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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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