Electric Cars Capture Record 23% of New Vehicle Market in October

Battery electric vehicles have set an extraordinary new record in Australia, accounting for nearly one in every four new vehicles delivered last month, according to the latest figures released by the Federal Chamber of Automotive Industries.

A total of 103,325 new vehicles were delivered across Australia in October 2026, representing a 3.8 per cent lift over the same month last year. Among those, fully electric vehicles achieved an all-time high market share of 23.1 per cent from all sources. That is more than triple the 7.3 per cent share electric models recorded in October last year.

The industry body noted that heightened brand competition, elevated petrol prices, and federal tax support continue to encourage Australian motorists into zero-emission vehicles. In contrast, traditional fuel types lost ground rapidly. Monthly deliveries of petrol-only vehicles tumbled by 35.9 per cent compared to twelve months earlier, while diesel vehicle registrations fell by 14.7 per cent.

Automotive brand dynamics are changing alongside driver powertrain choices. While Toyota retained overall market leadership with 20,649 deliveries, electric vehicle manufacturer BYD climbed into second spot nationally with 10,025 sales, outpacing legacy volume brands including Ford, Kia, and Mazda. Popular electric models such as the BYD Sealion 7, BYD Atto 2, and Geely EX5 all secured places in Australia's top ten best-selling nameplates for the month.

Alongside the surge in EV choices, China cemented its standing as Australia's largest country of origin for new cars, supplying 36.3 per cent of all vehicles delivered in October, ahead of Japan and Thailand.

What this means for your novated lease

If you are considering salary packaging a vehicle, these latest sales numbers show that electric models have decisively entered the Australian mainstream.

• Greater model variety and stock availability: With incoming brands expanding their footprints and electric models regularly ranking among Australia's top-selling vehicles, waiting lists are shorter and leasing buyers have far more body styles and trim levels to pick from.
• Substantial running cost relief: As petrol and diesel demand falls, households switching to electric vehicles are using salary packaging to pay for charging and servicing with pre-tax income, shielding their day-to-day budgets from pump prices.
• Tax concessions remain available: Eligible electric cars valued below the luxury car tax limit continue to benefit from complete exemption from fringe benefits tax. Locking in an eligible novated lease now allows you to secure these pre-tax savings ahead of planned legislative changes scheduled to start narrowing exemptions from April 2027.
• Stronger leasing value under $75,000: The sheer volume of competitively priced electric hatchbacks and mid-sized family SUVs makes it easier than ever to secure a vehicle well below upcoming future price caps, giving you maximum tax efficiency across the entire lease term.