Electric vehicle sales played an increasingly influential role in Australia’s new car market in January 2026, reinforcing the structural shift underway in both private and fleet purchasing as electrified models continue to gain traction.
According to the latest VFACTS data released by the Federal Chamber of Automotive Industries (FCAI), total new vehicle sales reached 87,092 units, up 0.3 per cent year-on-year, signalling a steady start to the year. Within that total, battery electric vehicles (BEVs) accounted for 8.4 per cent of all sales, while hybrids and plug-in hybrids continued to capture growing market share.
Electrification momentum continues
The January figures confirmed a further decline in petrol-only vehicles, down 14 per cent compared with January 2025, as buyers increasingly opt for electrified alternatives. Plug-in hybrid vehicles (PHEVs) recorded particularly strong growth, with 5,161 sales, representing 5.9 per cent of the market and a 170.5 per cent increase year-on-year.
Hybrid vehicles accounted for 17.4 per cent of all new vehicle sales, highlighting that while BEVs continue to expand, many buyers — including fleets — are still taking a staged approach to electrification.
New players dominate January EV rankings
Sales data compiled by Carloop using VFACTS and Electric Vehicle Council (EVC) data shows that January’s EV market was dominated by newer brands and recently launched models.
The top-selling electric vehicles in January 2026 were led by BYD, which placed multiple models in the top ten. The BYD Sealion 7 topped the chart with 1,171 sales, followed by the BYD Atto 2 with 562 sales.
Strong results were also recorded by ZEEKR with the 7X (418 sales) and Geely’s EX5 (415 sales), underlining the growing impact of Chinese OEMs on Australia’s EV market.
Despite increased competition, Tesla remained a key player, with the Model Y recording 288 sales in January, alongside 213 sales for the Model 3. The Kia EV5 also featured strongly with 281 sales, reflecting continued interest from both private buyers and fleets.
Calendar year results highlight diverging brand performance
Looking beyond the January snapshot, Electric Vehicle Council data highlights contrasting outcomes for major EV brands across calendar year 2025.
Polestar recorded a 38.5 per cent increase in sales compared with 2024, with total national volumes reaching 2,373 vehicles, indicating steady growth from a relatively small base.
By contrast, Tesla’s total sales declined by 24.8 per cent year-on-year, with 28,856 vehicles sold nationally in 2025. However, the Model Y remained Australia’s best-performing EV, finishing December 2025 as the single most popular vehicle overall with 1,998 sales, a 7.4 per cent increase on December 2024. Across the full year, Model Y sales totalled 22,239 units, up 4.6 per cent annually.
What it means for fleets
For fleet buyers, January’s EV results reinforce several key trends. Choice is expanding rapidly, particularly with new entrants prioritising volume and competitive pricing to gain market share. At the same time, brand performance is diverging, placing greater emphasis on whole-of-life cost modelling, residual value confidence, and supply discipline.
With fleet sales representing nearly half of all new vehicle purchases in January, and electrification increasingly embedded in procurement strategies, EV performance in early 2026 is shaping up as a critical indicator of how quickly Australia’s fleet sector can transition from internal combustion to low- and zero-emission vehicles.
- Central Coast Council builds electrified fleet as fuel pressures increase
Central Coast Council now has 153 battery electric and hybrid vehicles in service as it continues a gradual transition away from conventional petrol and diesel models. The electrified vehicles represent around 11 per cent of Council’s total fleet of 1,386 vehicles. The mix includes battery electric passenger vehicles, hybrid passenger vehicles, hybrid trucks and a - Coles puts electric prime movers to work on B-double freight routesColes is expanding its electric vehicle trials into heavy freight, introducing three Volvo electric prime movers into its New South Wales distribution network in partnership with S2 Logistics. The electric trucks will transport products from suppliers into Coles distribution centres and are capable of pulling B-double trailer combinations. Their introduction represents an important operational test
- Council cuts vehicles and trials electric equipment to contain rising costsMackay Regional Council is reducing vehicles, trialling electric equipment and changing how maintenance crews are deployed as part of a broader effort to contain rising operating costs. From robotic mowers and park maintenance blitzes to electric vehicles and LED streetlights, the council says a suite of operational and energy-efficiency measures is already delivering significant savings.
- Australian trials prove electric refrigeration can handle real freight routesBattery-electric transport refrigeration is moving beyond overseas demonstrations and specification sheets, with Australian trials showing the technology can complete demanding freight routes while significantly reducing diesel use. Speaking at TruckShowX, Protrans Solutions General Manager Grant Turner shared results from a series of local trials designed to test whether electric refrigeration units could withstand Australian temperatures,
- Australia Post puts $40.5 million behind electric trucks and vansAustralia Post is preparing to move fleet electrification beyond postie bikes and small delivery vehicles, with a $40.5 million Federal Government investment supporting the rollout of electric vans, trucks, prime movers and depot charging infrastructure. The one-off funding will be delivered during the 2026–27 financial year and is intended to accelerate Australia Post’s existing fleet
