The Australian automotive market has seen a decline in plug-in hybrid electric vehicle (PHEV) sales following the removal of the fringe benefits tax (FBT) exemption on April 1st. According to the Federal Chamber of Automotive Industries (FCAI), April saw 2,601 PHEV purchases, representing just 2.9% of total sales and a 4.7% decrease year-to-date compared to March 2025. This shift occurred after the Australian Government ceased classifying PHEVs as zero or low emissions vehicles under FBT law, making them ineligible for electric car exemptions.
Total new vehicle sales in Australia decreased by 6.8% in April, with 90,614 units purchased. Battery EVs (BEVs) account for 5.9% of the market. FCAI CEO Tony Weber emphasized the impact of government policy on consumer behavior, stating that the prior FBT exemption for PHEVs was crucial in making these vehicles accessible. The FCAI believes these sales figures underscore the challenges Australia faces in meeting its emissions reduction targets under the New Vehicle Efficiency Standard. Toyota led the market in April with 19,380 sales, followed by Ford, Mazda, and Kia.
