Up to 117% sales increase within a year, hybrids remain Australia's top choice as they outsell BEVs for three straight quarters

The latest EV Index from the Australian Automobile Association (AAA) unveils a notable shift in Australians' vehicle preferences, which despite showing a decline in traditional internal combustion engine (ICE) models, sees a continued increase in hybrid vehicle (HEV) sales, reports news portal Go Auto.

In the first quarter of 2024, both battery electric vehicle (BEV) and HEV new vehicle sales surged, achieving record market shares. Petrol-electric HEV models notably retained their popularity among Australian new-car buyers, constituting 11.95% of the new car market, a significant 5.69% increase from the previous year.

Meanwhile, ICE vehicle sales experienced an 8.03% decline in national new light vehicle (regular cars, light commercial vehicles, motorcycles) sales from Q4 2023 to Q1 2024, with ICE market share dipping below 80% for the first time.

BEV sales continued their robust growth, capturing 8.7% market share, while plug-in hybrid electric vehicles (PHEV) lagged behind with only 1.17% market share. Hydrogen fuel-cell electric vehicles (HFCEV) deliveries remained minimal, totaling just eight units in Australia over the past year.

Despite an overall 3.54% decline in national light vehicle sales from Q4 2023 to Q1 2024, year-on-year total sales showed a promising increase of 13.91%.

The AAA underscores a consistent growth trend for BEVs and HEVs over the last five quarters, accompanied by a gradual decline in ICE market share, albeit acknowledging significant quarterly fluctuations.

Over the same period, BEV market share rose from 6.77% to 8.7%, with total BEV sales climbing from 17,396 to 25,468 units. Notably, hybrids outsold BEVs in three consecutive quarters, comprising 11.95% of all light vehicle sales, marking a 117% increase in hybrid sales volume over the past year.

Although ICE vehicle sales rose year-on-year, up from 222,136 in Q1 2023 to 228,961 in Q1 2024, their share of Australia's new car market decreased by over eight percent during this period, indicating a shifting preference towards electrified vehicles.

In terms of fuel and vehicle type preferences, ICE vehicles continued to dominate several market segments, including small car, small SUV, and large SUV categories, with HEVs following as a distant second.

Notably, traditional powertrains still constituted the majority in utility, van, and people mover models, while BEVs showcased strong performance in the medium and large passenger car segments, as well as the medium SUV segment.

HEVs, on the other hand, saw robust sales in medium cars, medium SUVs, small cars, and small SUVs.