Australian EV sales plunging despite Tesla Model Y’s success

Electric vehicle sales in Australia fell significantly in June 2025, despite the introduction of several new models into the market, according to the latest VFACTS industry figures.

Including Tesla and Polestar, which do not appear in official headline VFACTS figures, total EV sales dropped 9.9% in June to 13,169 units, with a more substantial 36.5% decline recorded year-to-date, totalling 47,145 units compared to 74,284 units in the same period last year.

Tesla maintained its lead within the segment, delivering 4,589 vehicles in June, though its overall sales have fallen 38.8% year-to-date. The Tesla Model Y bucked the downward trend with a strong monthly performance, up 19% to 3,457 sales; however, year-to-date Model Y sales are still down 16.7%. Conversely, sales of the Tesla Model 3 continued to decline sharply, dropping 36.3% in June and nearly 65% year-to-date.

Polestar demonstrated resilience in a declining market, with overall sales up 23.6% year-to-date, largely driven by its newly launched Polestar 3 and Polestar 4 models. However, its established Polestar 2 saw a 62.1% monthly drop, reflecting intensifying competition.

BYD was another standout performer, with sales surging 144.6% year-to-date. Despite substantial declines in its established Atto 3 (down 50.2%) and Seal (down 60.7%) models, BYD’s recent launches - including the Shark 6, Sealion 6, and Sealion 7 - have significantly bolstered the brand’s Australian presence.

In contrast to the EV market, plug-in hybrid electric vehicles (PHEV) continued to experience strong demand, with June sales more than tripling to 6,220 units - a 217% increase year-on-year. Similarly, hybrid sales maintained stability, increasing slightly by 0.1% in June and showing robust growth of 14.9% year-to-date.

Traditional internal combustion engine vehicles remain dominant in volume but continue to lose share gradually. Petrol vehicle sales declined by 3.0% in June and are down 8.5% for the year, while diesel vehicles saw a modest 5.4% monthly increase driven largely by SUVs and commercial vehicles, although still down 4.3% year-to-date.

Total new vehicle sales across all categories rose 2.4% in June to 122,509 units but remain 3.7% lower year-to-date at 608,811 units.

Despite numerous new entrants and aggressive model launches, Australia's EV market continues to contract, possibly due to uncertain global stability and ongoing economic challenges impacting consumer confidence and market demand.