Electric vehicles top petrol sales again as market share reaches 24 per cent

Official automotive industry data released for September shows battery electric vehicles have outsold petrol cars in Australia for the second straight month, securing nearly a quarter of all new car deliveries.

Figures from the Federal Chamber of Automotive Industries and electric vehicle industry reporting show that 102,924 new vehicles were recorded in VFACTS for September, lifting to 108,778 once all electric deliveries are included. Pure electric cars captured a 24.2 per cent share of the market, representing an increase of roughly 118 per cent compared to the same month last year.

In contrast, petrol vehicle volumes dropped by 36.2 per cent over the year, while diesel deliveries fell by 18.4 per cent. While traditional workhorses like the Ford Ranger and Toyota HiLux remained high on the individual model charts, mainstream family buyers have shifted heavily towards electric SUVs and plug-in options. Growing local competition, expanding model choice from major manufacturers, and persistent pain at the fuel pump have all accelerated the transition.

China has also cemented its position as Australia's leading vehicle supplier, accounting for 35.5 per cent of all new cars arriving in September and outpacing Japan and Thailand. This influx of competitive electric models has expanded choice across diverse price brackets, giving local motorists far more options under key tax caps.

What this means for your novated lease

If you are currently evaluating your next car, the rapid growth in electric adoption creates an ideal environment to salary package.

• Maximum tax savings under current rules: Eligible battery electric vehicles priced below the fuel-efficient luxury car tax threshold of $91,661 remain completely exempt from fringe benefits tax. This allows you to pay for both the vehicle finance and running costs out of your pre-tax pay, significantly lowering your taxable income.
• Longer-term policy changes are approaching: Federal changes will begin phasing in from 1 April 2027, eventually narrowing the full exemption to electric vehicles under $75,000 before shifting to a permanent 25 per cent discount. However, the federal government has confirmed that leases entered into before these changes take effect will be protected for their full duration.
• Relief from ongoing running costs: Aside from the upfront tax perks, swapping expensive petrol for novated electricity charging offers substantial day-to-day savings, especially when bundled with servicing and insurance into a single salary deduction.
• Broad model selection: With brands competing heavily on features and pricing, finding a family SUV or daily commuter that sits safely beneath the luxury car tax cap has never been easier.