Tesla’s electric car dominance under threat by a wave of fresh EVs

Electric car sales continue to soften in Australia as demand for hybrids and plug-in hybrids skyrocket, but new EVs could buoy the market amid growing Tesla disinterest.

While EV sales dropped 20.5 per cent in March this year compared to the same month in 2024, from 10,549 units to 8385, the best-selling Tesla Model Y is growing limited in stock with the vehicle in runout ahead of a new version arriving from May.

Notching a 1725-unit tally (down 60.6 per cent) last month, the Model Y was ahead of its Model 3 sibling (1104, down 32.6 per cent), both also likely affected by consumer disinterest in the brand and a growing wave of anti-Tesla sentiment due to its ties with Elon Musk and the US Government.

Still, Tesla managed to account for the lion’s share of Australian EV sales in March with a 2829 total, or one in every three electric car sales.

BYD’s new Sealion 7 – a Tesla Model Y competitor – found 573 new homes in March, its second month reporting sales data.

This means BYD delivered close to half of its circa-1000 pre-orders it had taken for the model in late February, but it remains to be seen if the Sealion 7 can maintain its momentum and challenge Tesla for the top spots this year.

Likewise, the Kia EV5 continues with solid cut-through, notching 478 registrations last month ahead of the MG 4 (444) and BYD Atto 3 (358).

In a surprise seventh place was the Mercedes-Benz EQE SUV, finding 219 new homes, and was the most popular luxury electric car for the month.

Another BYD was ranked eighth in March, with the Seal finding 194 customers, and the brand accounting for three of the Top 10 spots.

Newcomer Geely and its aggressively-priced EX5 also found a solid customer base in its first month with 188 sales, while the Kia EV3 rounded out the Top 10 just behind on 186 units.

Overall, four out of the Top 10 spots went to models that are six months old or newer, showing interest in fresh entrants to the market.

However, this sales data takes into account all new registrations – including dealer, demo and press fleet vehicles – and is not a true representation of long-term consumer interest.

As such, sales were up 380.1 per cent in March compared to the same month last year to 6932 units, with the BYD Shark 6 and Mitsubishi Outlander in the top spots with 2810 and 1112 sales respectively.

However, the most popular electrified vehicle technology remains – by far and away – the hybrid powertrain type, accounting for 16,830 sales last month, an increase of 22.8 per cent.

Toyota and Lexus vehicles accounted for seven out of the Top 10 spots, with RAV4 (4317), Corolla (1481), and Corolla Cross (1219) taking out the podium.

These models were followed by the Yaris Cross (808) in fifth, Camry (784) in seventh, Kluger (654) in eighth, and Lexus NX (420) in 10th.

Also in the mix last month were Hyundai’s trio of hybrid SUVs, with the Tucson (930) proving most popular in fourth position, followed by the Kona (797) in sixth and Santa Fe (490) in ninth.

Outside the Toyota/Lexus and Hyundai hybrids, the next most popular models were the Honda HR-V (408) in 11th place and Kia Sportage (387) in 12th position.  

Electric Cars Guide

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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