Electric cars outsell petrol in Australia again: what September's new car sales mean for you

For the second month in a row, Australians bought more electric cars than petrol cars. Official September 2026 figures show battery electric vehicles took 24.2 per cent of the new car market, more than double their share a year ago, while petrol car sales fell by more than a third.

Here's what the numbers say, why it's happening now, and what it means if you're buying or selling a car in the next few months.

Quick answer: Electric cars narrowly outsold petrol cars again in September, with roughly 26,300 EVs against about 26,000 petrol cars once Tesla and Polestar are counted. Petrol above $2.30 a litre, cheaper Chinese EVs and the countdown to the Electric Car Discount changes on 1 April 2027 are driving it. The Ford Ranger was still Australia's best seller.

September 2026 at a glance

• Total new vehicle sales: 102,924 in the official industry count, up 0.9 per cent on September 2025. Add Tesla and Polestar, which report separately, and the total is about 108,800.
• Electric cars (BEV): 24.2 per cent of the market, up from 11.3 per cent a year ago. August's 24.8 per cent is still the record.
• Plug in hybrids (PHEV): sales up 122.7 per cent, to about 10,000 cars.
• Hybrids: sales up 20.7 per cent.
• Petrol: sales down 36.2 per cent.
• Diesel: sales down 18.4 per cent.
• Year to date: electric cars are 18.9 per cent of all sales in 2026, up from 8.1 per cent at the same point last year. Petrol and diesel still lead across the full year.

The margin between electric and petrol was tiny, only a few hundred cars, so October could go either way. But the trend is clear. A year ago petrol cars outsold EVs by a wide margin every month.

Australia's 10 best selling new cars in September

1. Ford Ranger: 5,062
2. Toyota RAV4: 4,624
3. Toyota HiLux: 4,455
4. BYD Sealion 7: 2,687
5. Chery Tiggo 4 Pro: 2,059
6. GWM Haval Jolion: 2,018
7. Geely EX5: 2,008
8. Toyota LandCruiser Prado: 2,006
9. Isuzu D-Max: 1,866
10. MG ZS: 1,805

That list leaves out Tesla, which reports its sales through the Electric Vehicle Council instead. The Tesla Model Y found 4,476 buyers, which would put it third, just ahead of the HiLux.

Four of the top 10 now come from Chinese brands, and China supplied 35.5 per cent of all new vehicles sold in September, more than Japan (22.5 per cent) and well ahead of Thailand (17.3 per cent) and South Korea (9.6 per cent). You can follow every model month by month on our new car sales tracker.

The top selling electric cars

1. Tesla Model Y: 4,476
2. BYD Sealion 7: 2,687
3. Geely EX5: 2,008
4. Jaecoo J5 EV: 1,754
5. Zeekr 7X: 1,628

Tesla delivered 5,654 cars in total, while BYD was Australia's second biggest brand overall with 8,191 sales across its electric and plug in hybrid models. Geely sold 4,473 cars to finish ninth among all brands.

Why Australians are switching now

1. Petrol is expensive

The ACCC's latest weekly figures put average unleaded at $2.30 a litre across the five biggest cities on 30 September, with Canberra at $2.47, Darwin at $2.45 and Hobart at $2.43. That is 65 cents a litre more than in February, before conflict in the Middle East pushed oil prices up. Diesel averaged $2.83.

At those prices, a family SUV doing 15,000km a year on 8 litres per 100km costs about $2,760 a year in fuel. Charging an EV at home is usually a fraction of that, which is a big reason buyers are making the jump. You can check today's prices near you with our fuel price finder.

2. Cheaper electric cars

Not long ago most mid size electric SUVs cost $60,000 or more. Now cars like the Geely EX5 and BYD Sealion 7 start well under that, and small EVs such as the BYD Atto 1 and MG4 Urban sit in the $20,000s and $30,000s. More choice at lower prices has pulled EVs into the mainstream.

3. The Electric Car Discount is changing

Electric cars on a novated lease are currently exempt from fringe benefits tax. In May the Federal Government confirmed that from 1 April 2027 the full exemption will only cover EVs costing $75,000 or less, with a 25 per cent discount for EVs between $75,000 and the luxury car tax threshold. From 1 April 2029 the full exemption ends, and eligible EVs get the 25 per cent discount only. The government says existing arrangements won't be affected, so many buyers are locking in a lease now.

4. Hybrids are booming too

It isn't only EVs. Hybrid sales rose 20.7 per cent and plug in hybrids more than doubled. The new Toyota RAV4, now hybrid only with a plug in option, was Australia's second best seller. Plenty of buyers want lower fuel bills without changing how they refuel.

Utes are slipping, but the Ranger is back on top

Light commercial sales, mostly utes, fell 13.2 per cent compared with September last year, while passenger cars rose 6.3 per cent and SUVs 6.1 per cent. Even so, the Ford Ranger reclaimed the No.1 spot with 5,062 sales. If you're comparing utes, see our Ford Ranger vs rivals guide.

What this means if you're buying or selling

• Buying an EV: demand is high for the most popular models, so stock of some colours and grades can be tight. Shopping around between dealers, and considering demo and near new cars, is the best way to avoid waiting or paying too much.
• Thinking about a novated lease: the full FBT exemption is guaranteed until 31 March 2027. If the car you want costs more than $75,000, timing matters. Talk to your employer or lease provider about when your lease needs to start.
• Buying petrol: with petrol sales down more than a third, dealers holding petrol stock may be more open to a deal. It is worth asking.
• Selling a petrol car: values depend on the model, but it is smart to know what yours is worth before you trade it in. Try our free car value tool.

Ready to make a move? Tell us what you're after and we'll use our network to find the best deal anywhere in Australia, on a new, demo, near new or used car, electric, hybrid or petrol. Get the best deal. Got a car to move on first? We can help you sell your car too.

Frequently asked questions

Did electric cars outsell petrol cars in Australia?

Yes. In August and September 2026, battery electric cars outsold petrol only cars, once Tesla and Polestar sales are included. Across the full 2026 year to date, petrol and diesel still sell more.

What was Australia's best selling car in September 2026?

The Ford Ranger, with 5,062 sales, ahead of the Toyota RAV4 (4,624) and the Tesla Model Y (4,476).

What was the best selling electric car?

The Tesla Model Y, with 4,476 deliveries, followed by the BYD Sealion 7 (2,687) and Geely EX5 (2,008).

Is the EV FBT exemption ending?

Not yet. The full exemption continues until 31 March 2027. From 1 April 2027 it only fully covers EVs costing $75,000 or less, and from 1 April 2029 it becomes a 25 per cent discount for eligible EVs.

Figures checked on 9 October 2026 from the FCAI's VFACTS release, the Electric Vehicle Council, the ACCC and the Treasury. Industry and media counts differ slightly depending on whether Tesla and Polestar are included.

Images: Tesla Australia (Model Y), BYD Australia (Sealion 7), Calreyn88 via Wikimedia Commons, CC0 (Ford Ranger).