Thousands more motorists are buying electric vehicles in what one automotive expert has called a "turning point" and permanent shift for the industry.
Electric cars made up more than one in every five new vehicles sold during June, according to figures released by the Federal Chamber of Automotive Industries on Friday, during a month of record automotive sales.
Tesla's Model Y electric car also claimed the title of Australia's best-selling vehicle, overtaking strong competition from the Ford Ranger and Toyota HiLux utes.
The result is the fourth record-breaking month in a row for electric cars in Australia, and follows rising petrol and diesel prices caused by conflict in the Middle East.
While motorists may have initially investigated electric and hybrid vehicles to avoid fuel costs, chamber chief executive Tony Weber said their widespread adoption would change the market for good.
"While these factors have had a short-term impact, part of the EV growth would appear to be a permanent structural shift," he said.
"The Australian automotive market has shifted on its axis during the first months of 2026.
"This year is likely to represent a significant turning point for the Australian automotive industry."
Australian motorists purchased more than 140,000 new vehicles during June - the highest number recorded to date.
More than 32,500 of those sales were for electric vehicles, according to statistics from the chamber and the Electric Vehicle Council, making up 23.3 per cent of all sales, up from 8.4 per cent in January.
Combined with hybrid and plug-in hybrid vehicle sales, low-emission vehicles represented 49.5 per cent of vehicles sold during the month.
Petrol and diesel vehicles continued to fall in popularity during June – with sales down by 29 and 18 per cent respectively — even though they remained the most popular fuel types.
SUVs also remained the most popular vehicles with buyers, representing almost two in three models sold, although sales of all model types rose.
Toyota retained its title of the best-selling vehicle brand in Australia during June, with more than 19,000 car sales, but BYD ranked a close second, trailing by only 243 sales.
The performance of BYD and other Chinese brands cemented China as the biggest source of vehicles for Australians, followed by Japan and Thailand.
Electric car sales rose significantly in March, as petrol and diesel prices spiked, but they have persisted despite a discount on fuel excise.
The reduced fuel discount of 16 cents per litre, introduced on July 1, is due to expire on August 2.
