Electric Vehicle Sales in Australia See First Decline in Over Three Years Amidst Ongoing Hybrid Boom

In a notable shift in the Australian auto market, electric vehicle (EV) sales in Australia experienced their first downturn since late 2020, marking the end of a significant growth period. According to the latest industry figures, EV registrations dropped by 5% in April, with 6,194 units sold compared to 6,530 in the same month last year.

This decline interrupts a streak of substantial growth for EVs, which had seen consistent triple-digit year-on-year increases since early 2021. The slowdown began in the latter half of 2023, transitioning to more moderate double-digit growth rates. Year-to-date, EV sales are up by 32%, a decrease from the 46% increase recorded in the first quarter of 2024.

Tesla, a leading name in the EV market, saw a significant sales decrease of 44% year-on-year to 2,077 units, despite remaining the top-selling EV brand in April. The company has recently announced further price reductions for its Model 3 sedan and Model Y SUV in an effort to boost sales.

Meanwhile, Chinese automaker BYD reported a 26% increase in year-on-year sales, driven by the new Seal sedan, though its Atto 3 SUV saw a substantial 63% drop in sales. Other newcomers to the Australian EV market, including models from Ford, Subaru, and Toyota, have yet to make a significant impact.

Hybrid vehicles, on the other hand, continue to see explosive growth. Hybrid sales surged by 195% in April 2024 compared to the same month in the previous year, with year-to-date sales of combustion-electric vehicles also up nearly 140%. Plug-in hybrids are enjoying a similar uptick in popularity.

Diesel vehicles have also shown positive movement, with a 14% increase year-to-date following a 22% rise in April. In contrast, petrol vehicle sales have remained relatively flat, showing a slight decrease in April.

This shifting landscape raises questions about whether April’s downturn in EV sales is an isolated incident or an early sign of Australia aligning with trends of declining EV sales observed in markets like the US and Europe.

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