Economic pressures are increasing the demand for hybrid electric vehicles.
The latest data from the Australian Automotive Association (AAA) has revealed that purely battery-powered electric vehicle sales have plummeted in the last quarter, as hybrid vehicles have surged.
From July to September, battery-powered vehicle sales fell by 25%, marking the lowest EV market since 2022. 
The decline is attributed to ongoing economic pressures, with the rising cost of living affecting consumer spending decisions.
Despite the dip, hybrid vehicles are bucking the trend seeing a 3% increase, while plug-in hybrids increased by 56%.
The AAA analysis found that while sales of fully battery-powered electric vehicles seem to have peaked, hybrid vehicles remain the future growth area.
“In the first half of 2023, battery electric vehicles outsold hybrids, but since then hybrids have outsold battery electric vehicles in five consecutive quarters. Hybrids are now outselling battery electric vehicles even in the ACT, which has long been Australia’s strongest market.”
AAA
The latest study noted that until April 1 2025, plug-in hybrids are exempt from fringe benefits, saving Australians thousands on new cars under a novated lease.
Head of legal, policy and advocacy at the Electric Vehicle Council, Aman Gaur, expects hybrid and purely battery-powered electric vehicle sales to increase next year as the federal government’s new vehicle efficiency standard begins to influence the market.
