HYBRID sales have hit their second-highest level in the past two years with the September quarter showing they now command 16.52 per cent of light-vehicles despite a slowdown in vehicle sales. If you add plug-in hybrids into the mix, hybrids now account for more than 20 per cent of the market. 

The Australian Automobile Association’s quarterly EV Index, which covers all electrified light-vehicle passenger car and SUV sales, reported that hybrids accounted for 16.52 per cent of sales (49,929 units).

This was their second-highest  total quarterly sales since the index was created at the start of 2023 when 48,282 units were sold. 

Hybrid percentage share of sales eased marginally (16.52 per cent compared with the previous high of 16.70 per cent in 2024 Q3), despite sales numbers being up, because of the growth of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs).“Despite quarterly fluctuations, sales of hybrid vehicles have grown strongly over the past two years,” the AAA said.

“In the first half of 2023, BEVs outsold hybrids nationally, but since then hybrids have outsold BEVs in nine consecutive quarters.” 

PHEV sales had been growing strongly from a low base since the EV Index was launched in Q1 2023, recording only one quarter (Q1 2024) of declining sales and market share until their market share fell from 4.82 per cent in Q1 2025 to 3.79 per cent in Q2 2025. 

The AAA said PHEVs’ market share rebounded to 4.12 per cent in the September quarter. (Fringe Benefits Tax exemptions for PHEVs ended on March 31, which may have brought forward some sales that would have otherwise occurred in the June quarter.) 

BEVs achieved record total sales and market share in Australia in the three months to September 30, as internal combustion engine (ICE) vehicle sales posted their lowest quarterly market share on record, according to a report from the nation’s peak motoring  body. 

The AAA’s quarterly EV Index, which charts progress of Australia’s transport technology transition, has also identified growth in sales of hybrid and PHEVs.

The Index shows 29,298 new BEVs were sold in the September quarter which is 54 units more than in the three months to June 30. 

“But because total sales of new light vehicles fell by 3.83 per cent, BEVs took a larger share of a smaller market (9.70 per cent of total September quarter sales), up from the June quarter record of 9.31 per cent,” the AAA said. 

“PHEVs accounted for 4.12 per cent of the quarter’s sales, that category’s second-highest quarterly market share.”

The AAA EV Index, which collates information from multiple national, state and territory sources and analyses new light vehicle sales, reflects the trends transforming Australia’s new car market.  

It said that despite quarterly fluctuations, sales of hybrid vehicles have grown strongly over the past two years.

“In the September quarter, ICE remained the leading fuel type for all market segment sales except medium cars, which were dominated by hybrids (40.70 per cent) and BEVs (40.27 per cent).

“ICE accounted for 18.34 per cent of medium car sales with PHEVs making up the remaining 0.69 per cent.”

The AAA said medium SUVs remain Australia’s most popular vehicle segment (26.06 per cent of total Q3 new light vehicle sales) while ICE vehicles accounted for 43.03 per cent of Q3 medium SUV sales, even though only 16.10 per cent of ICE sales were medium SUVs.

“Hybrids accounted for 27.02 per cent of medium SUV sales, BEVs for 22.70 per cent, and PHEVs for 7.26 per cent,” it said.

“This is  the highest proportion of BEVs among medium SUV sales on record, slightly up from the June  quarter’s 22.24 per cent.

“In the March 2025 quarter, only 10.92 per cent of medium SUV sales were BEVs.

“Among ICE vehicles, in Q3 medium SUVs were outsold by 4WD utes, small SUVs, and large SUVs, respectively. 

“But medium SUVs were the single biggest vehicle segment among the other major fuel types, accounting for 60.99 per cent of all Q3 new BEV sales, 42.60 per cent of all new hybrid sales and 45.85 per cent of all PHEV sales. 

“Among PHEVs, medium SUVs are followed by 4WD utes and large SUVs while PHEV sales in other segments are negligible.”