Australia’s electric vehicle (EV) market hit a new milestone in the June 2025 quarter, according to the Australian Automobile Association (AAA), with battery electric vehicles (BEVs) capturing 9.31 per cent of all new light vehicle sales, up from 6.29 per cent in the March quarter.

The AAA’s latest EV Index shows 29,244 BEVs were sold between April and June, a 63.37 per cent increase from the 17,901 units in Q1.

Overall light vehicle sales rose 10.42 per cent to 314,185 in Q2, with internal combustion engine (ICE) models still dominating – 226,306 units sold, up nearly 10 per cent from Q1. However, ICE market share edged down to 72.03 per cent from 72.37 per cent.

Hybrid sales slipped slightly to 46,732 units, representing 14.87 per cent of the market – their lowest share since early 2024 – while plug-in hybrid (PHEV) sales fell 13.19 per cent to 11,902 units (3.79 per cent share). The drop in PHEVs follows the end of Fringe Benefits Tax exemptions for the category on March 31.

The AAA’s latest release follows the launch of Australia’s first independent real-world EV range tests, which found five models travelled 5–23 per cent less than official lab figures. The tests aim to address range anxiety, cited in AAA polling as a key barrier for potential EV buyers.

Medium SUVs remain Australia’s top-selling vehicle category, accounting for 24.55 per cent of new light vehicle sales. They led BEV and hybrid sales in Q2, with BEVs making up a record 22.24 per cent of medium SUV sales – double their March quarter share. ICE-powered medium SUVs still held the largest share at 47.83 per cent, while hybrids accounted for 23.92 per cent and PHEVs 6.01 per cent.

A notable shift in the PHEV segment came from the launch of the BYD Shark 6 plug-in hybrid 4WD ute, which claimed nearly 47 per cent of all PHEV sales in Q2 and 9.24 per cent of the 4WD ute segment.

Despite BEV momentum, hybrids continue to outsell them overall – a streak unbroken since late 2023. But with BEV share climbing sharply in Q2, the gap between the two technologies may be narrowing, signalling a potential turning point in Australia’s evolving car market.