Just under half of all new car sales in the second quarter of 2026 were electric or hybrid vehicles, the Australian Automobile Association found in its latest edition of the EV Index.
Since the index began in 2022, internal combustion engine-only vehicles have gone from accounting for almost nine in 10 new cars sold to about 50 per cent.
Sales of battery-electric vehicles and plug-in hybrid electric vehicles set quarterly records in the latest figures released on Sunday, accounting for 21 per cent and 10.6 per cent of the market respectively.
Battery-only vehicle sales more than doubled quarter-on-quarter, rising from 34,435 during the first part of the year to 69,414 in the three months to the end of June.
It was the first time in three years that sales of pure electric cars exceeded hybrid vehicle sales.
Soaring EV sales have been attributed to high fuel prices - driven by the US-led war on Iran and the de facto closure of key oil shipping channel the Strait of Hormuz - and an influx of cheaper models on the market.
The federal government has cut fuel taxes to ease the burden of petrol and diesel price hikes on motorists, but the excise reduction ends on Monday.
Internal combustion engine-only cars accounted for just under 51 per cent of new car sales in the quarter, down about 13 percentage points from the first three months of the year.
With the federal fuel excise discount to end late Sunday, authorities fear potential chaos as motorists try to cash in on lower prices.
The ramping up of missile strikes between Iran and the US has increased fears fuel supplies will be disrupted again, leaving drivers exposed to further price shocks.
The EV index draws on information from multiple national, state and territory sources.
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