Hybrid vehicle sales declined in the final quarter of 2024, though they continued to outsell battery electric vehicles (BEVs) according to the latest data from the Australian Automobile Association’s EV Index.
The December quarter saw hybrid sales drop from 16.70 per cent of the market in September to 14.83 per cent. BEV sales increased, reaching a 7.42 per cent market share, up from 6.59 per cent in the previous quarter.
Overall, new light vehicle sales fell by 0.62 per cent compared to the September quarter, marking the lowest sales figures since early 2023. Internal combustion engine (ICE) vehicle sales rose slightly by 0.63 per cent, increasing their market share from 74.17 per cent to 75.11 per cent. Plug-in hybrid electric vehicles (PHEVs) continued to grow, with market share rising from 2.53 per cent to 2.63 per cent.
Hybrid sales declined in every state and territory except Tasmania, with a national drop of 11.73 per cent. This reduction was largely attributed to weaker sales for Toyota, which saw a decline of 6,337 hybrid vehicle sales compared to the previous quarter.
The report also noted that BEV sales and market share remained below their peak from the second quarter of 2024. Hybrids have outsold BEVs for six consecutive quarters, including in the ACT, traditionally Australia’s strongest market for BEVs.
PHEV sales, while growing, remain a small portion of the market. The ACT recorded the highest PHEV market share in Q4 at 6.35 per cent, while Tasmania and the Northern Territory had the lowest at 1.32 per cent and 1.48 per cent, respectively.
The December quarter figures reflect trends leading up to the implementation of the Federal Government’s New Vehicle Efficiency Standard, which took effect in January 2025. The policy aims to encourage sales of EVs and fuel-efficient vehicles, with its impact expected to be assessed in mid-2025.
Shifts in government incentives are also affecting the market. Fringe benefits tax exemptions for PHEVs will end in April 2025, while BEV rebates have ceased in all states and territories except Western Australia, where they will end in May.
Medium SUVs remain Australia’s most popular vehicle category, accounting for the majority of hybrid, BEV, and PHEV sales. ICE vehicles continued to dominate overall sales, making up more than 99 per cent of utes and vans sold in the December quarter.
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