Electrified Vehicles Continue to Gain Momentum as Petrol and Diesel Sales Slide in Australia

Australia’s new-car market is continuing its gradual but unmistakable shift away from traditional petrol and diesel vehicles, with the latest January 2026 sales data showing electrified models taking an ever-larger share of the market. Figures released through the VFACTS reporting system indicate that consumer preferences are increasingly favouring vehicles with some form of electric assistance, whether hybrid, plug-in hybrid, or fully electric.

Compared with the same month last year, sales of petrol-powered and diesel-powered vehicles declined once again, reinforcing a trend that has been building over several years. While internal combustion engines still dominate overall sales volumes, their share of the market is shrinking as buyers explore alternatives that promise lower running costs, reduced emissions, and improved efficiency.

Electrified vehicles were the standout performers in January. Combined sales of hybrids, plug-in hybrids, and battery electric vehicles rose substantially year on year, reflecting broader changes in vehicle availability, pricing, and consumer awareness. Hybrids continued to attract strong demand, particularly among buyers not yet ready to fully transition to electric-only driving. These vehicles remain popular for their ability to reduce fuel consumption without requiring charging infrastructure.

Plug-in hybrids recorded the most dramatic growth of all electrified categories. This segment expanded rapidly compared with January 2025, driven in large part by increased offerings from Chinese automotive brands. Many of these newer models combine competitive pricing with long electric-only driving ranges, making them appealing to urban commuters while still offering the reassurance of a petrol engine for longer trips.

Battery electric vehicles also posted solid gains, with several manufacturers delivering higher volumes than in previous years. Although EV adoption has slowed in some global markets, Australia’s EV segment continues to grow steadily as charging infrastructure improves and model choice expands across different price points and vehicle types.

Industry leaders have noted that while overall new-vehicle sales remain relatively stable, the makeup of the market is clearly changing. Consumers are weighing factors such as fuel prices, environmental concerns, and government policy when making purchasing decisions. The increasing presence of electrified vehicles on Australian roads suggests that these considerations are having a meaningful impact.

Despite this momentum, petrol and diesel vehicles are expected to remain part of the market for the foreseeable future, particularly in regional areas and among buyers who rely on towing capability or long-distance driving. However, January’s figures reinforce the idea that electrification is no longer a niche trend but a central part of Australia’s automotive landscape.

As manufacturers continue to invest in electrified technology and expand their model line-ups, the gap between traditional and electrified vehicles is likely to narrow further throughout 2026 and beyond.

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Original Article Source: WhichCar