EVs Hit a Record 14.6% of New Car Sales as Running Costs Bite

Australia just had its biggest month for electric vehicle sales on record.

More than 15,800 EVs were sold in March 2026, according to VFACTS data released this week. That's 14.6% of all new car sales, up from 7.5% a year ago. Nearly one in six buyers chose electric.

The surge has reshuffled the market. BYD, the Chinese manufacturer, outsold Tesla for the first time, delivering 4,206 EVs in March alone. Tesla's Model Y remains the top-selling individual model, but the brand race is now genuinely competitive. MG, Hyundai, and Kia are all pushing hard behind them.

The fuel crisis is accelerating the shift

This isn't happening in a vacuum. Petrol prices have been volatile since the Middle East conflict disrupted global supply in late 2025. Even with the temporary fuel excise cut, many drivers are paying north of $2.00 per litre.

The maths is straightforward. A typical petrol car burning 7 litres per 100 km costs around 14 cents per kilometre to run. An EV charged at home during off-peak hours costs 4 to 6 cents. For someone driving 15,000 km a year, that's $1,200 to $1,500 saved on fuel alone. Add lower maintenance costs (no oil changes, less brake wear), and the total running cost advantage stretches to $2,000 to $3,500 annually.

The entry price has dropped

Three years ago, the cheapest EV in Australia cost over $40,000. Today, the BYD Atto 1 starts at $23,990 before on-roads. The MG4 Urban, launching this month, is $31,990 driveaway. There are now 12 electric vehicles available under $40,000.

That price compression is why BYD is winning. Affordable models, decent range, and aggressive pricing have made EVs accessible to buyers who previously thought they were out of reach.

The hesitations are real, but shrinking

Charging infrastructure remains a concern. Australia has over 3,400 public fast-charging plugs across 1,300+ sites, with Chargefox operating the largest network. More than 100 new chargers are being added monthly. But EV sales are still outpacing charger installations three to one, and regional coverage has gaps.

Resale value has also stabilised. After aggressive price wars in 2024 and 2025 rattled the used EV market, depreciation rates have settled. EVs now depreciate at roughly 47% over three years, compared to 50% for petrol cars. The Tesla Model Y holds value best, while cars with LFP batteries are fetching a 4 to 6% premium in the second-hand market because buyers worry less about battery degradation.

What this means if you're considering a car

If you're in the market, the calculation has changed. EVs are no longer a premium-only product. Running costs are significantly lower. And the market is maturing fast.

Before deciding, work out what you actually need. Check whether home charging is feasible. Compare total cost of ownership over five years, not just the sticker price. And don't panic-buy because of fuel prices. The best purchase is the one that fits your situation, not the one that reacts to last month's headlines.

This article is general information only and is not financial advice.