Plug-in hybrid sales slide as Australia’s big-car obsession continues
Australians have backed away from plug-in hybrid electric vehicles after the scrapping of a key tax break sent sales into a discharge cycle.
Plug-in hybrid vehicle sales dropped to 2601 in April, representing 2.9 per cent of total sales, down from 4.7 per cent in March, according to figures from the Federal Chamber of Automotive Industries.
The slump coincided with the removal of the fringe benefits tax exemption for the vehicle type at the end of March and highlighted the importance of government policy on consumer behaviour, the chamber said.
“The earlier inclusion of PHEVs in the FBT exemption played a critical role in making these vehicles accessible to more Australians,” FCAI chief executive Tony Weber said.
“Removing that support has led to an immediate and disappointing drop in demand in a price-sensitive vehicle market.”
Tesla sales plummeted more than 75 per cent to 500 vehicles in April, compared to the same month in 2024, Electric Vehicle Council figures show.
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The company has experienced a consumer backlash after CEO Elon Musk’s involvement with the Trump administration and his public support of right-wing political parties in Europe.
Total new vehicle sales were down 6.8 per cent on April 2024, to 90,614.
Electric vehicle sales made up 5.9 per cent of Australia’s total market, giving it a long way to go in achieving its new vehicle emissions reduction goals, Weber said.
“For (the) New Vehicle Efficiency Standard to succeed, it must be supported by holistic policy settings that assist consumers to move to zero and low-emission technologies, including continued investment in recharging infrastructure,” he said.
Diesel dominates
However, it could take more than policy tweaks to shift Australia’s affinity for thirsty four-wheel drives.
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Diesel-dominated utes and sports utility vehicles made up four of the top-five selling vehicles in April, led by the Toyota Hilux (4121 sales) and the Ford Ranger (4031).
The Ford Everest (2234) and Toyota Prado (2233) were fourth and fifth on the list.
The Toyota RAV4, which comes in a petrol or hybrid option, was the third-highest seller with more than 3800 units sold.
VFACTS: Australians purchased 90,614 new vehicles during April, a decrease of 6.8 per cent on the same period in 2024.
Toyota was market’s leading brand with sales of 19,380 during April, followed by Ford (7334), Mazda (6573), Kia (6303) and Hyundai (5547).
Passenger vehicle sales slumped more than 25 per cent compared to April 2024, while commercial vehicle sales fell 4.6 per cent and heavy commercial vehicle sales dropped by more than a fifth.
SUV sales were relatively steady, up 0.1 per cent.
On a state-by-state level, new vehicle sales sank 18 per cent in Tasmania compared to April 2024, were down 17 per cent in the ACT and 1. 6 per cent in South Australia.
Western Australia posted the slimmest decline in sales, down 1.4 per cent, followed by the Northern Territory, down 2.4 per cent, and Queensland, where they fell 3.2 per cent.
New vehicle sales in NSW and Victoria fell 7.5 per cent and 7.9 per cent on last April.
