Australian EV and Hybrid Sales Match Petrol Cars Amid Rising Fuel Prices
Quick Look
Australian motorists are buying electric and hybrid vehicles at the same rate as petrol cars, with EV sales doubling in Q2 2026, as fuel prices are set to rise again with the end of the federal government's excise reduction.
AI-generated summary
Why It Matters
The federal government introduced fuel excise reductions on March 30 to offset the impact of instability in the Middle East on fuel prices.
Australians are now buying electric and hybrid vehicles at the same rate as traditional petrol-powered cars, according to new data that shows EV sales doubled in the months after the peak of the fuel price spike.
Fuel prices are again on track to top $2 a litre, after the federal government’s fuel excise reductions – introduced to offset the impact of the ongoing crisis in the Middle East – come to an end on Sunday.
The Australian Automobile Association (AAA) has released its latest EV Index, showing motorists pivoting to electric and hybrid options in the three months from April to June, coinciding with the period of instability in fuel prices.
Almost half of sales of new cars from that period were electric, plug-in hybrid or hybrid vehicles.
The market share of EVs (21.03%) and plug-in hybrids (10.58%) were both records.
Fuel prices peaked in March, amid instability in the Middle East that affected key supply routes.
The federal government intervened on 30 March, announcing a fuel excise reduction that has provided some relief at the bowser.
The AAA’s figures show that sales of battery electric vehicles more than doubled in the second quarter of 2026 – up from from 34,435 in the first three months, to 69,414 between April and June.
The AAA says the increase is the largest-ever quarterly rise for electric vehicles.
Hybrid sales were also at an all-time high, but were overtaken by the surge in motorists purchasing EVs.
Sales of traditional internal combustion engine (ICE) vehicles fell from 64.23% in the first quarter to 2026 to 50.84% in the most-recent data. It is the lowest-ever market share for petrol-powered vehicles and their biggest-ever quarterly drop, the AAA says.
When the AAA’s EV index began recording data in 2022, ICE cars accounted for nine out of ever 10 sold.
What to Watch
AI outlook — possibilities, not facts
Fuel prices will top $2 a litre after the excise reduction ends.
Very likely · Within days
Sales of electric and hybrid vehicles will continue to grow.
Likely · Within months
Open Questions
- How will the end of the fuel excise reduction impact consumer spending?
- Will the surge in EV sales continue at this rate?
- What specific models are driving EV sales growth?



