VFACTS March: EV sales boom as petrol prices rise

Electric vehicle sales surged to record highs in March 2026, with the Tesla Model Y leading the charge as rising fuel prices pushed Australian buyers away from petrol and diesel vehicles.

March 2026’s VFACTS data highlights a dramatic shift in Australia’s new-car market, driven largely by surging fuel prices linked to conflict in the Middle East.

Battery-electric vehicles accounted for 14.6 per cent of total sales – the highest share on record – with 15,839 units registered. That represents an 88.9 per cent increase compared to March 2025, and a 42.3 per cent jump over February.

Leading the charge was the Tesla Model Y, which climbed to third overall with 2818 sales, trailing only the Ford Ranger and Toyota HiLux.

Tesla delivered 3485 vehicles in total for the month, placing 13th among brands.

The broader EV market also saw strong gains. The BYD Sealion 7 recorded close to 2000 sales – up 244 per cent year-on-year – while another Chinese challenger brand Zeekr continued its steady rise with 679 deliveries of the Zeekr 7X.

carsales internal data shows EV interest has surged sharply, with search activity tripling between February and March, reflecting growing consumer urgency amid rising fuel costs.

Those costs have climbed significantly, with diesel prices exceeding $3.00 per litre and regular unleaded surpassing $2.50 per litre. A late-March fuel excise cut of 32 cents per litre may provide some relief, but its full impact is yet to be seen.

Meanwhile, traditional internal-combustion vehicles are losing ground. Petrol sales dropped 20.8 per cent year-on-year, while diesel vehicles fell 10.1 per cent. Hybrid sales remained resilient, rising 6.7 per cent to 17,953 units, while plug-in hybrids jumped 18.5 per cent to 8215.

Despite the EV surge, Australia’s top-selling vehicles remained the Ford Ranger and Toyota HiLux, though the Ranger posted a 9.7 per cent decline year-on-year. Ford’s overall sales fell 13.2 per cent.

Toyota retained its position as the top-selling brand, despite a 19.3 per cent drop driven largely by limited RAV4 supply during a model changeover. The RAV4 recorded just 1362 sales, down from 4321 a year earlier.
Other notable performers included the Nissan X-Trail, which jumped into fourth place with 2438 sales (up 25.3 per cent), narrowly ahead of the Mitsubishi Outlander.

Chinese brands continue to gain traction, with BYD, GWM, MG and Chery all finishing inside the top 10.
The first quarter scorecard

Through the first three months of 2026, total new-vehicle sales reached 282,862 units, down 2.6 per cent compared to the same period last year.

Toyota leads the year-to-date standings with 44,490 sales, despite a 23 per cent decline. Mazda sits second on 21,890, just ahead of Kia on 20,630.

BYD has emerged as a standout performer, recording 17,541 sales so far in 2026 – already double its result from the first quarter of 2025.

China’s influence continues to grow, with 69,970 vehicles sourced from the country in Q1, up 52.9 per cent year-on-year. Japan remains narrowly ahead at 71,596 units, though that gap may close as supply normalises.

If fuel prices remain elevated, the rapid shift toward electrified vehicles is likely to accelerate, with EVs and hybrids continuing to eat into the market share of traditional petrol and diesel models.

At the same time, supply constraints – particularly for high-demand models like the Toyota RAV4 – will play a key role in shaping brand rankings in the months ahead.

With Chinese brands expanding rapidly and new EV entrants arriving, the competitive landscape of the Australian market is set for further disruption through 2026.

The 4x4 ute segment, long a cornerstone of the Australian market, is beginning to soften. Sales fell 12 per cent in March 2026 and six per cent year-to-date, suggesting high diesel prices may be dampening demand.

Best-selling models of March 2026
1. Ford Ranger – 4452
2. Toyota HiLux – 4167
3. Tesla Model Y – 2818
4. Nissan X-Trail – 2438
5. Mitsubishi Outlander – 2318
6. Hyundai Kona – 2316
7. Chery Tiggo 4 – 2258
8. Isuzu D-Max – 2167
9. Hyundai Tucson – 2042
10. GWM Haval Jolion – 2013

Best-selling brands of March 2026
1. Toyota – 16574
2. Kia – 7320
3. BYD – 7217
4. Mazda – 7156
5. Ford – 7149
6. Hyundai – 6979
7. GWM – 5680
8. Mitsubishi – 5001
9. MG – 4218
10. Chery – 4018

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