Early signs show EVs will overtake hybrids
By Tim Gibson · 17 Apr 2026
It was not so long ago plug-in hybrids looked to have found the middle ground between electrified power and long driving range. PHEV power experienced more growth than any other powertrain type in 2025 - and by some significant margin. It was up by more than 130 per cent compared to 2024.Leading the charge for PHEV power is the BYD Shark 6 ute, one of the few utes to experience sales growth last year. Its 1.5-litre turbo-petrol engine and dual electric motors provided outstanding fuel economy (when the battery was charged) capturing attention despite modest towing and carrying capacity. Most other brands have also jumped on the PHEV pathway, especially in the SUV segment. However, it now looks like a change might be on the horizon, as fully-electric sales continue to rise and at an even faster rate.There is a combination of factors likely contributing to this new set of circumstances in the new car sales space.While PHEVs offer incredible fuel efficiency, EVs do not need any fuel and obviously have far superior electric-only driving range with electric-only driving range remaining one of the biggest selling points for PHEVs. This is becoming an increasingly relevant point for buyers due to the current scarcity and cost of fuel in Australia.One of the other key factors which could erode PHEV sales is the substantial improvement in driving range of electric cars. Most EVs now offer more than 400km before needing to be charged, and even then charging times have also rapidly improved, with most brands targeting a 30 minute-or-less fast charge time compared to an hour previously.Charging infrastructure has been seeing rapid investment in Australia in the past 12 months, with governments as well as major brands getting on board. Just this week, the New South Wales government announced $45 million of funding towards new public fast chargers as part of its ‘2026 NSW Electric Vehicle Strategy’, and this adds to the existing federal ARENA public funding for EV infrastructure.BYD has also confirmed it will bring its ‘Flash’ charging to Australia this year, removing barriers to charge speed usually imposed by the grid thanks to an inclusion of a high-voltage buffer battery.There is also the question of increasing accessibility to electric vehicles in Australia, with many becoming available at a more affordable price point. The BYD Atto 1, for example, is available from $23,990, before on-road costs, while the cheapest PHEV, also a BYD, the Sealion 5 is $10,000 more. This is more reflective of the types of vehicles in which PHEV set-ups are offered as opposed to electric cars. The most common PHEV car body type is SUVs, which targets family buyers and more car (size-wise, with two powertrains instead of one) costs you more money.And yet, the models surging the most in the sales charts are the fully electric Tesla Model Y and Zeekr 7X, which are both in that core mid-size family buyer segment.This combined with the early adopter phase for much of this technology ending and electrified cars becoming more mainstream will mean some buyers who don't have access to home charging, like those who live in units, might not be able to utilise the key benefits of a PHEV.Many of this wider-audience may value the range on offer from an EV, which will see them charge only once or twice a week as a benefit at such a competitive price-point, not having to worry about not being able to charge at home, and not needing to fuel up altogether. This is also an audience which predominantly buys small or mid-size SUVs.PHEVs then, may be destined to be relegated to only larger vehicles, like utes and three-row SUVs where battery electrics become less cost competitive.