In 2025, Australia witnessed a remarkable surge in electric vehicle (EV) sales, breaking previous records and marking the first time that more than 100,000 electric cars were sold within a single calendar year. This growth can be largely attributed to the influx of new brands, particularly from China, including notable players such as BYD and Zeekr.
Interestingly, despite this booming market, Tesla experienced a significant decline in its sales figures. The company, which had previously led the Australian EV market, saw its total sales drop by 25 percent. This decline was primarily driven by a staggering 61 percent fall in sales of the Model 3 sedan, which previously held strong popularity.
When considering heavy-duty commercial vehicles like trucks and large vans, the total number of electric vehicles sold in Australia for 2025 reached an impressive 103,474—an increase from 91,495 in 2024. It is important to note, however, that this figure excludes sales data from manufacturers such as XPeng, Smart, and Cadillac, which do not disclose specific results in the Australian market. Nevertheless, it is estimated that XPeng alone sold about 2,000 units last year.
Electric vehicle sales have vastly outpaced the overall new vehicle market, which only saw a modest increase of 0.3 percent in 2025, according to data from the Federal Chamber of Automotive Industries (FCAI) and Electric Vehicle Council (EVC). This stagnation was highlighted by challenges faced by popular models such as the Ford Ranger, Toyota HiLux, and Toyota RAV4.
Tesla remained the leading electric car manufacturer in Australia for 2025, with 28,856 registrations. However, this figure represents a significant drop of 24.8 percent compared to the 38,347 registrations from the previous year, and it stands in stark contrast to its record-setting performance of over 46,000 sales in 2023. As competition in the EV market intensifies, Tesla's share has shrunk to 27.9 percent, a sharp decline from 41.9 percent in 2024, 52.9 percent in 2023, and 59 percent in 2022.
The Tesla Model Y emerged as the best-selling electric vehicle in 2025, with 22,239 units sold, reflecting a modest growth of 4.6 percent year-over-year. This slight increase occurred despite the launch of a significantly updated version of the Model Y mid-year. Conversely, the Model 3’s performance suffered dramatically, plummeting by 61.3 percent to just 6,617 registrations, marking its worst showing since 2020.
This downturn allowed the BYD Sealion 7 to secure the position of the second-best-selling electric vehicle in Australia with 13,410 sales, despite only being introduced in February. The Kia EV5 and the new Geely EX5 followed in fourth and fifth places, with respective sales of 4,787 (a remarkable increase of 168 percent) and 3,944.
While BYD sold fewer electric vehicles overall than Tesla with 25,287 units, the introduction of new models like the Atto 1 and Atto 2, along with the ongoing popularity of the Sealion 7, positions BYD strongly for continued growth in 2026.
Kia has now claimed the title of the third-largest electric vehicle seller in Australia, reporting 8,131 deliveries in the last year—a substantial increase of 125 percent, largely driven by the success of the EV5 and EV3 models (2,597 units). This move has pushed MG down to fourth place, with a reported 6,447 vehicles sold, reflecting a decrease of 21.8 percent.
Among the models that exhibited the highest growth rates—excluding those launched late in 2024—are the Skoda Enyaq (382 units, up an astounding 696 percent), Polestar 3 (332 units, an increase of 368 percent), and Chery E5 (868 units, up by 341 percent).
The Zeekr 7X has also made a noteworthy entrance into the market, achieving 1,206 deliveries within just two and a half months of availability, placing it as the 15th most sold electric vehicle overall.
Alex Misoyannis, who has been reporting on automotive topics since 2017, has seen a progression in his career from starting his own website to contributing to major automotive publications. His lifelong passion for cars continues to influence his work today.
