Australia recorded 103,325 new vehicle sales in October 2026, registering a 3.8% increase over the corresponding month last year. Battery electric vehicles (BEVs) accounted for 23.1% of total sales, nearly three times their market share in October 2025, according to AFMA.
According to the Federal Chamber of Automotive Industries (FCAI), increased competition among vehicle manufacturers, a wider range of models and technologies, higher fuel prices and federal government tax concessions have contributed to the growing demand for electric vehicles.
FCAI Chief Executive Tony Weber said buyers were increasingly considering vehicles that offered the potential to lower running costs, even as households continued to face financial pressure and higher borrowing costs.
“Consumers are making rational choices and are attracted to options that reduce their costs. Despite continuing pressure on household budgets and higher borrowing costs in 2026, the October result shows there is extraordinary resilience in new vehicle demand,” Weber said.
The FCAI linked the strong performance of BEVs during October to growing competition in the market, instability in the Middle East, rising fuel prices and government tax incentives. In contrast, sales of petrol-powered vehicles dropped 35.9% year-on-year, while diesel vehicle sales declined 14.7%.
Weber also stressed the need to expand charging infrastructure in line with the rising adoption of electric vehicles. He said reliable and accessible charging facilities would be essential to support the increase in new vehicle demand, particularly for BEVs.
China emerged as Australia’s largest source of vehicles recorded through VFACTS during October, accounting for 36.3% of supply. Japan contributed 23.3%, followed by Thailand at 17.9% and South Korea at 9.2%.
Toyota maintained its lead among vehicle brands, with 20,649 units sold during the month. BYD secured the second position with 10,025 sales, while Ford ranked third with 7,310 units. Kia, Mazda, MG, Hyundai, GWM, Geely and Chery also featured among the top 10 brands.
Among individual models, Toyota HiLux recorded the highest sales at 5,954 units. Ford Ranger followed with 4,841 sales, while Toyota RAV4 registered 4,718 units.
The BYD Sealion 7 was the highest-selling battery electric model in the VFACTS top 10, with 2,524 units. The other models in the top 10 included Toyota Prado, Chery Tiggo 4 Pro, BYD Atto 2, BYD Shark 6, Geely EX5 and Ford Everest.
The October sales figures indicate continued demand for established high-volume vehicle models alongside the growing presence of electric vehicles in Australia’s new vehicle market.
