New petrol cars could be outnumbered in two years

Gasoline-powered vehicles recorded their lowest market share on record, as electric and hybrid cars are rapidly gaining ground with large numbers of drivers.

The Australian Automobile Association announced this trend in its quarterly Electric Vehicle Index on Monday; This index showed that the market share of cars with internal combustion engines fell by more than 11 percent in two years.

In contrast, electric car sales peaked in the September quarter and hybrid vehicles continued to accelerate.

The figures follow the federal government announcing a 2035 environmental target that requires more low-emission vehicles on the road, as well as state and territory governments removing discounts on electric car purchases.

Analyzing data from the Federal Chamber of Automotive Industry and the Electric Vehicle Council, the association’s EV Index found that vehicles powered by conventional fuel accounted for 69 percent of cars sold between July and September.

The market share represented a decline from the more than 81 percent market share in the same period in 2023, with 37,000 fewer vehicles sold.

Electric vehicles achieved their highest market share to date with 9.7 percent of new car sales, while hybrids accounted for 16.5 percent of the market and plug-in hybrids 4.1 percent.

Electric Vehicle Council head of policy Aman Gaur said the figures proved more Australians were changing their minds about the type of car they wanted to drive.

“The trend is clear: Australians are moving away from expensive-to-run, environmentally hazardous petrol cars towards cars that are better for the environment and better for the pocket,” he told AAP.

“Gasoline cars could have less than 50 percent of the market by the end of 2027.”

Mr. Gaur said the high cost of gasoline and rising inflation played a role in this change, as more drivers looked for ways to reduce their household expenses.

Data from the EV Index showed that, with some exceptions, gasoline and diesel-powered cars still dominate sales in most vehicle categories, despite their decline in popularity.

Figures showed that hybrid and electric cars together account for more than 80 percent of midsize vehicles sold and outnumber fuel-powered options among midsize SUVs.

But meeting Australia’s 2035 environmental target will require significantly greater adoption of low-emission vehicles, Mr Gaur said, and state and territory governments should consider restoring financial support for the purchase of these vehicles.

“The federal government’s ambition is laudable and we really encourage state governments that have withdrawn all vehicle subsidies over the last 12 months to recommit,” he said.

The Climate Change Authority has found that 50 per cent of all light vehicles purchased over the next decade need to be electric to meet the government’s target for emissions reductions of between 62 and 70 per cent.