Demise of electric vehicles is over-hyped as sales EV surge thanks to the 2026 Tesla Model y, BYD Sealion 7, Kia EV5 and Geely EX5 family SUVs | Opinion

Demise of electric vehicles is over-hyped: EV sales surge thanks to the 2026 Tesla Model Y, BYD Sealion 7, Kia EV5 and Geely EX5 family SUVs | Analysis

While several big name car makers walk back their all-electric plans, the suggestion that electric vehicles are yesterday’s news doesn’t tally with growing sales.

Electric vehicle (EV) sales still only account for 8.3 per cent of the total market, but grew significantly in the key SUV and light commercial vehicle segments. Notably, plug-in hybrids (PHEVs) have also grown significantly in recent years and combined EV and PHEV sales accounted for more than 13 per cent of the overall market.

While there is still clearly a long way to go, there are also some clear signs that Australians are slowly starting to embrace EVs as they become more diverse in both price and type. Until last year, the market was dominated by Tesla, with the American brand often accounting for more than half the total EV sales.

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In 2025 the Tesla Model Y remained the best-selling EV, but the BYD Sealion 7 was its closest rival and the Kia EV5 and Geely EX5 also sold in good numbers. In total there were 10 EVs in the top 100 selling vehicles last year, underlining the increasing variety that is attracting new customers.

BYD is the leading in this regard with four of the most popular EVs coming from the Chinese brand, and each very different propositions appealing to different buyers. These are the Sealion 7 mid-size SUV, Atto 3 small SUV, Seal sedan and Dolphin hatch.

The arrival of the $23,990 Atto 1 will open up the EV market to even more customers too, as it will be amongst the most-affordable new cars on sale this year.

In many respects, this is the moment the market has been waiting for, with EVs effectively achieving price parity with conventional petrol and diesel models. While not every EV is as price-competitive as the Atto 1, the increasing cost of internal combustion engine (ICE) vehicles only helps make EVs more appealing to buyers looking to save on their fuel bill.

The growth of PHEVs will only further accelerate the electric future, as the long-touted ‘bridging technology’ will introduce more motorists to electric performance, while still allowing for the ICE back-up.

PHEV sales have been on a sharp upward trajectory the past two years, growing more than 130 per cent in 2025 off the back of the BYD Shark 6, BYD Sealion 6, Mitsubishi Outlander and GWM Haval H6 GT.

PHEV sales are expected to grow in 2026 and beyond, as more established brands, including market-leading Toyota, join the race. This will only accelerate the electrification on Australian roads, adding to the significant volume of hybrids already sold.

While there is still some way to go before EVs become a majority on the roads, a reminder they account for less than 10 per cent at present, it’s clear that despite a slowing down of interest from manufacturers, electric cars are here to stay.

Best selling electric cars 2025

Vehicle	Sales	Percentage change
Tesla Model Y	22,239	+4.6%
BYD Sealion 7	13,410	N/A
Tesla Model 3	6617	-61.3%
Kia EV5	4787	+687.3%
Geely EX5	3944	N/A
BYD Atto 3	3861	-32.9%
BYD Seal	3784	-40.8%
BYD Dolphin	3248	+53.5%
MG4	2986	-56.9%
Kia EV3	2597	N/A