2026 Poised to Be a Pivotal Year for Electric Vehicles in Australia

According to a report by JET Charge, the momentum is shifting towards vehicle types that Australians favour most. In 2025, medium SUVs increased their share of EV sales from 16% in 2024 to 27%, aided by an expansion in available models from 30 to 45. The price premium for EVs in this category has also narrowed to 18-22% over their petrol counterparts, making them more accessible to a broader range of consumers.

Utes have emerged as a surprising success story, with sales climbing from just 362 units in 2024 to 20,622 in 2025, capturing about 8% of the overall ute segment. This growth was largely driven by models like the BYD Shark 6, which became the fourth highest-selling ute overall with a 7% market share.

Kristian Handberg, Head of Future Business at JET Charge, emphasised the significance of this shift, stating that the medium SUV segment exemplifies a highly competitive market of EV options with an increasingly narrow price gap to non-EV alternatives. He noted that many passenger vehicles, SUVs, and light commercial EVs have now reached cost parity with ICE vehicles when assessed on a whole-of-life basis.

Several high-volume EVs have seen price reductions of 20 to 40% since 2022, with some models now priced below $30,000 drive-away. For instance, the BYD Atto 1 is priced at $23,990 plus on-road costs, positioning it competitively against light petrol hatchbacks such as the Toyota Yaris, Mazda2, and Suzuki Swift.

JET Charge has modelled two scenarios for 2026 based on the future of the Fringe Benefits Tax (FBT) exemption for EVs. With the exemption retained, it forecasts around 195,000 EV and plug-in hybrid electric vehicle (PHEV) sales in 2026, equating to a 15% overall market share. Without the exemption, the company predicts sales will reach approximately 167,000 units, representing a 13% market share.

For environmentally conscious Australians interested in new car technologies, these developments indicate a promising future for EV adoption. The anticipated price parity, coupled with an expanding range of models, suggests that 2026 could be a transformative year for the Australian EV market, offering more accessible and diverse options for consumers.