Most buyers think the market is fully shifting to electric. It’s not. What’s actually happening is far more nuanced and if you understand it properly, you can time your purchase better, negotiate harder, and avoid overpaying.
What’s Happening
Australia’s new car market in 2025 is splitting into two very distinct buyer groups. On one side, you have early adopters moving into electric vehicles and hybrids. These buyers are typically metro-based, more price-flexible, and willing to wait for delivery.
On the other side, the majority of buyers are still sticking with petrol and diesel. These are practical buyers focused on price, availability, and proven reliability. Hybrid vehicles are sitting in the middle and quietly dominating, attracting buyers who want fuel savings without committing fully to electric.
This is why models like the Toyota Corolla and Toyota RAV4 Hybrid continue to have strong demand despite long wait times. At the same time, popular petrol SUVs like the Hyundai Tucson and Kia Sportage are still moving in high volume, especially when stock is available immediately.
Electric vehicles are growing, but not evenly across the market. Demand is strongest in specific segments and locations, not across all buyers.
Key Details You Need to Know
Hybrid vehicles remain one of the most in-demand categories in Australia. Full electric vehicle growth is happening, but mainly in metro areas where charging access is more practical.
Petrol and diesel vehicles still make up the majority of purchases because they are available now and easier to live with for most buyers. Supply constraints still affect hybrids more than petrol vehicles, which is why wait times remain a key factor.
EV availability is improving, but concerns around resale value, charging infrastructure, and long-term ownership still hold many buyers back. At the same time, fleet and novated lease buyers are heavily influencing EV growth, while private buyers remain far more price-sensitive and cautious.
This creates a very uneven market depending on what you are trying to buy.
Why This Matters Right Now
This split in buyer behaviour directly impacts pricing and negotiation. If you are looking at a high-demand hybrid, dealers have leverage. They know supply is tight and buyers are willing to wait, which means discounts are limited and often nonexistent.
If you are looking at a petrol SUV with strong stock levels, the dynamic flips. Dealers need to move units and will be more aggressive on pricing, especially towards the end of the month when targets matter most.
Electric vehicles sit in a unique position. Some models have strong demand and limited supply, while others are sitting in stock longer than expected. This inconsistency creates opportunities if you know where to look.
Dealers are currently balancing three key pressures: clearing existing petrol stock, managing hybrid waitlists, and pushing EV adoption targets. If you approach the market blindly, you will likely pay retail. If you understand where pressure exists, you can extract real savings.
What Most Buyers Get Wrong
Most buyers assume the market is moving in one direction. They hear about EV growth and assume petrol is disappearing, but petrol and diesel still dominate because they are available, familiar, and often cheaper upfront.
Another mistake is chasing the most popular car without understanding supply. Buyers chasing hybrid SUVs often wait months and still pay full price because demand is too high. At the same time, there are equally strong alternatives sitting in dealer stock that can be negotiated heavily.
Buyers also underestimate how much dealer targets influence pricing. A dealer with excess petrol stock at the end of the month behaves very differently to one holding a long hybrid waitlist. Understanding that difference is where the real advantage comes from.
What This Means for You
If you are buying a new car right now, your strategy should depend on the powertrain you are targeting. If you want a hybrid, you should prioritise securing allocation rather than negotiating aggressively. The real win is getting the car sooner.
If you want an EV, you need to compare stock across multiple dealers. Some will discount to move units, while others will hold firm depending on demand and supply.
If you want petrol or diesel, this is where the strongest deals are currently happening, especially on SUVs where supply is healthy. Timing becomes critical here. End of month, end of quarter, and runout periods create pricing windows that most buyers completely miss.
The key is not just choosing the right car. It is choosing the right moment and the right dealer situation.
How Carseekers Gives You an Advantage
This is exactly where Carseekers changes the game. Instead of guessing which dealer has pressure or stock, Carseekers puts your request in front of multiple dealers at once and forces competition.
Dealers with stock will push harder on price. Dealers chasing targets will move faster. Dealers without leverage simply won’t compete, which means you instantly see where the real market price sits, not just the advertised price.
This becomes even more powerful in today’s split market. If you are looking at something like a Hyundai Tucson or Kia Sportage, you can leverage stock pressure to your advantage.
If you are targeting a Toyota Corolla Hybrid, you can secure the best possible deal available without wasting time going from dealership to dealership.
The reality is simple. The market is not moving in one direction. It is splitting, and when a market splits, opportunity increases for buyers who understand it.
If you approach it correctly, you are not just buying a car. You are buying it at the right time, from the right dealer, under the right conditions. That is where the real savings are.
Considering finance for your next car? Loanseekers can help you explore car loan options.
The finer details
Your questions answered.
What percentage of new cars sold in Australia are electric?
EV market share reached 14.6 percent of new car sales in March 2026, up from under 4 percent in early 2024. Growth has been concentrated in the $40,000 to $70,000 segment driven by Chinese brands and more competitive Korean EVs. Petrol and diesel vehicles still represent the significant majority of annual Australian new car sales.
Who is buying EVs in Australia — is it mainly inner-city buyers?
Early EV adoption has been concentrated in inner-metropolitan areas where home charging is accessible, average driving distances are manageable, and household incomes support the higher purchase price. Regional and rural buyers remain predominantly petrol and diesel, citing charging infrastructure gaps and range concerns for longer distances.
Why are many Australians still choosing petrol cars over EVs in 2026?
The main reasons are upfront cost, lack of home charging access in apartments and older housing, range anxiety for regional or outback travel, and limited towing capability for buyers who regularly tow trailers or caravans. These barriers are real for a significant portion of the Australian population, not just reluctance to change.
Are hybrid cars outselling EVs in Australia?
Yes. Hybrid vehicles, including standard hybrids and PHEVs, significantly outsell pure EVs in Australia. The Toyota RAV4 hybrid and HiLux hybrid are among Australia's top sellers. Many buyers see hybrid as the practical middle ground between the convenience of petrol and the running cost benefits of electrification.
Is it better to buy a hybrid or an EV in Australia in 2026?
For buyers with home charging access and primarily urban or suburban driving, an EV makes strong economic sense. For buyers in regional areas, those who tow regularly, or those without reliable home charging, a hybrid offers a better balance of running cost improvement without the infrastructure dependency that an EV requires.
Which segment of Australian buyers is most resistant to switching to EVs?
Ute buyers and regional/rural owners are the most resistant due to genuine towing and range limitations of current EVs in those use cases. Apartment dwellers without dedicated parking are also resistant due to charging access barriers. These are structural constraints rather than preference issues and will take years of infrastructure development to address.



