Tesla continues to dominate the Australian EV market in 2025, leading September sales with 4,663 units, a 76% year-on-year increase, driven by strong sales of the Model Y and BYD Sealion 7, which contributed to electric vehicles accounting for 11.3% of new-car sales.

Chinese-made vehicles are gaining significant traction, with a 67.7% surge in sales year-on-year, and four models, including the BYD Sealion 7 and GWM Haval Jolion, now in the Top 10, reflecting the growing influence of Chinese brands.

The overall EV market is expected to become more competitive in Q4, supported by additional incentives and infrastructure improvements, encouraging more consumers to switch to electric vehicles.

While traditional petrol and diesel vehicle sales are slightly declining year-to-date, hybrid and electric segments are experiencing notable growth, with EVs increasing their market share and brand competition.

Electric vehicle sales have decreased by 15.2% year-to-date, but plug-in hybrids and hybrid electric vehicles are up by over 140%, indicating shifting consumer preferences toward hybrid options.

Tesla's total sales for the first three quarters of 2025 exceeded 22,600 vehicles, a 26% decline from last year, though the Model Y saw a slight 3.2% increase, while Model 3 sales declined significantly.

Tesla's September sales surged following the launch of its full-self-driving (FSD) Supervised software, which gained attention in Australia and New Zealand as the first right-hand-drive markets for this technology.

Polestar's sales shifted with the Polestar 3 outselling the Polestar 2 for the first time, indicating changing consumer preferences within the brand.

Total new vehicle sales in Australia for 2025 reached nearly 939,000 units, a slight increase of 0.3% year-over-year, reversing earlier declines.

Market dynamics are shifting, exemplified by a 188,400% surge in Toyota Prado sales due to a new model launch, while other models like Isuzu Ute have fallen out of the Top 10.

Industry leaders like FCAI emphasize the increasing availability of over 150 electric models in Australia and highlight the need for improved infrastructure and consumer confidence to boost demand.

Toyota remains the top-selling brand with 18,318 units in September, more than doubling Ford's 8,300 units, though Toyota aims for around 220,000 units for the year, slightly short of last year's record.

September sales were bolstered by multiple incentives from brands like Tesla and BYD, making it a strong quarter-end period for EV sales globally and in Australia.