THE IRAN WAR has seen Australian new car buyers shift rapidly towards the purchase of electrified vehicles with hybrid, plug-in hybrid, and battery electric sales accounting for 46 per cent of the overall count for the month of May.

 

Combined data from the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council (EVC) show Australians purchased 106,887 new vehicles in May, down 2538 units on the month prior (-2.3 per cent).

 

The year-to-date tally for 2026 sits at 491,525 units from both sources, down 5168 units on the May 2025 (-1.0 per cent).

 

Across the segments, we note a further decline for the majority of passenger cars segments with the Micro passenger segment down a further 2.8 per cent YoY (to 562 units in May), the Small passenger under $45K segment down a whopping 18.9 per cent (to 3693 units), the Small passenger over $45K segment down 3.1 per cent (to 1424 units), and Large passenger vehicles on either side of the $70K price divide down 52.9 and 34.2 per cent respectively (to eight and 129 units).

 

The Light passenger segment bucked the trend rising 5.4 per cent YoY (to 2383 units), as did the Medium passenger vehicles on either side of the $60K barrier, up 18.7 and 35.3 per cent respectively (to 1795 and 1437 units), buoyed in no small part to the greater availability of new energy entrants from within the segment.

 

Upper Large segment passenger cars fell 50.0 per cent (to just 15 units) while People Movers under $70K fell 20.2 per cent (to 970 units). People movers over $70K increased by 26.6 per cent across May (to 214 units).

 

Perhaps indicating a holdback on discretionary spending, we note a decline across all Sports car segments in May. Sports cars under $90K fell 49.4 per cent (to 503 units), Sports cars over $90K dropped 34.0 per cent (to 246 units), and Sports cars over $200K slid 25.9 per cent (to 100 units even).

 

Shifting focus to SUV sales and we note more mixed results…

 

Light segment SUV sales fell 25.7 per cent (to 3350 units) YoY for the May period, while Small segment SUV under $45K sales rose 7.8 per cent (to 14,987 units). Small segment SUV over $45K sales fell 18.3 per cent (to 3076 units), while Medium segment SUV under $65K sales rose 26.9 per cent (to 23,406 units, the highest singular segment in May 2026).

 

Medium segment SUV over $65K sales were likewise up in May, rising 36.9 per cent (to 10,865 units), while Large segment SUV sales on either side of the $80K split sank, down 25.4 and 16.2 per cent respectively (to 9846 and 2030 units).

 

Upper Large SUV sales on both sides of the segment’s $120K division were also down, falling 27.0 and 9.6 per cent respectively (to 2017 and 44 units).

 

Light passenger buses were also down in May, the segment showing a decline in both the under and over 20-seat categories. Sales of lower capacity light passenger buses dropped a substantial 85.6 per cent in May (to 68 units), while higher capacity light passenger buses declined by 44.4 per cent (to 35 units).

 

Interestingly, counterpart light commercial vans rose incrementally across the same period, with vehicles in the sub-2.5t category up 13.1 per cent (to 138 units) and vehicles in the 2.5-3.5t category up 2.5 per cent to 2035 units.

 

Perennially popular light commercial utility vehicles faced a fall from form in May, with sales of two-wheel drive pick-up and cab-chassis models sliding 4.8 per cent (to 2008 units) and four-wheel drive pick-up and cab-chassis models slipping 18.0 per cent (to 14,891 units).

 

Despite the descent, pick-up and cab-chassis models remain high in the sales charts for May with the Ford Ranger (4474 units) and Toyota HiLux (4005 units) ranking in first- and second place for the month.

 

Countering the downward trend, Larger pick-up and cab-chassis models, those in the over $100K category, rose 44.2 per cent across May to achieve sales of 851 units. However, Heavy commercial vehicle sales elsewhere were down, falling 14.4 per cent (to 3362 units).

 

On a brand-by-brand basis, we note Toyota on top for May with sales of 16,342 units. That figure represents a year-on-year decline of 30.7 per cent (or 7234 units), reducing the Japanese brand’s market share to just 15.3 per cent.

 

BYD placed second in May with sales of 8211 units (up 7.7 per cent) ahead of Ford with 7195 units (down 15.0 per cent), Hyundai with 7007 units (up 4.5 per cent), Kia with 6761 units (down 2.1 per cent), and Tesla with 6433 units (up 65.1 per cent).

 

Top models for the month of May saw Tesla top the charts with 5605 registrations of its newly updated Model Y (up 56.6 per cent YoY), leading the four-wheel drive Ford Ranger with 4051 unit sales (down 9.6 per cent YoY), the Toyota RAV4 with 3865 unit sales (down 3.4 per cent YoY), the Toyota HiLux with 3685 units (down 12.4 per cent YoY), and the Hyundai Kona with 2291 unit sales (up 17.4 per cent YoY).

 

While economic challenges continue to take their toll on the new car market more broadly, we note steady sales from private buyers across passenger and SUV segments. Business buyers purchased more light commercial vehicles in May, while rental fleet buyers purchased more passenger and SUV models than government fleet purchasers.

 

Unsurprisingly, Chinese-made vehicles continued to lead as Australia’s preferred source of new vehicles in May with 37,229 units from the People’s Republic registered (up 74.1 per cent YoY). Japan trailed in second place with 22,823 registrations (down 28.9 per cent) ahead of third place Thailand with 17,552 units (down 22.1 per cent), fourth place South Korea with 13,184 units (up 5.2 per cent), and fifth place Germany with 4597 units (down 6.5 per cent).

 

As indicated at the outset, however, is a shift in Australian’s driveline preference that comes as a most significant alteration.

 

Spurred by fuel shortages as a result of the Iran War, Australians are rapidly changing the type of vehicles they purchase, with FCAI data showing a significant shift away from internal combustion power and towards electrified options.

 

In May, sales of plug-in hybrid electric vehicles (PHEVs) across all categories rose by 202.3 per cent year-on-year (to 9315 units). Traditional hybrid electric vehicle (HEV) sales jumped 11.3 per cent (to 19,024 units) while battery electric vehicle (BEV) sales shot up 111.7 per cent (to 21,303 units).

 

Despite a fall in popularity of 30.3 per cent, petrol-powered vehicles continued to prove the most popular overall in May with 28,692 unit sales, closely followed by diesel-powered vehicles with 25,191 units (down 26.2 per cent).

 

FCAI chief executive Tony Weber said the results demonstrated the pace of consumer adoption of lower-emission technologies in response to an international energy shock.

 

“The shift is particularly evident in the SUV segment, where consumer preferences are changing rapidly,” he said, while noting that more work was to be done on EV charging infrastructure if a greater update of PHEV and BEV models was to eventuate.

 

“Today’s SUV buyer is increasingly choosing hybrid, plug-in hybrid and electric options,” he noted.

 

“(But) as the number of EVs on the road continues to grow, charging infrastructure must become more of a priority.

 

“Continued investment and enabling policy settings will be essential to ensure infrastructure keeps pace with consumer adoption.”

 

Mr Weber said yesterday’s findings by Victoria’s parliamentary inquiry reinforce what consumers and industry have been saying for some time.

 

“Charging infrastructure rollout must accelerate if Australia is to maintain consumer confidence and support continued uptake,” stressed Mr Weber.

 

“The evidence increasingly demonstrates that NVES is encouraging manufacturers to bring more low emissions vehicles to Australia, increasing both consumer choice and technology availability.

 

“Regulatory stability and growth in public charging infrastructure is now critical to maintaining investment, consumer confidence and continued growth, particularly during a period of global economic uncertainty.”

 

Top 10 vehicle sales by make (May 2026)*:

 

Make	Sales	Share	Variance
Toyota	16,342	15.3%	-30.7%
BYD	8,211	7.7%	+7.7%
Ford	7,195	6.7%	-15.0%
Hyundai	7,007	6.6%	+4.5%
Kia	6,761	6.3%	-2.1%
Tesla	6,433	6.0%	+65.1%
Mazda	5,698	5.3%	-27.4%
GWM	4,660	4.4%	+9.1%
Chery	4,401	4.1%	+59.7%
MG	3,872	3.6%	+18.4%
Mitsubishi	3,307	3.1%	-30.6%

 

Top 10 vehicle sales by model (May 2026)*:

 

Make/Model	Sales	Variance
Tesla Model Y	5,605	+56.6%
Ford Ranger 4×4	4,051	-9.6%
Toyota RAV4	3,865	-3.4%
Toyota HiLux	3,685	-12.4%
Hyundai Kona	2,291	+17.4%
Hyundai Tucson	2,287	+27.5%
Omoda Jaecoo J5	2,172	New entrant
Chery Tiggo 4	2,123	+23.1%
Ford Everest	1,876	-20.8%
Geely EX5	1,814	+255.0%

 

State-by-state sales (May 2026)*:

 

State/Territory	Sales	Variance
Australian Capital Territory	1,575	-1.5%
New South Wales	33,465	-0.4%
Northern Territory	821	-5.7%
Queensland	22,182	-6.2%
South Australia	6,737	+0.1%
Tasmania	1,667	+5.2%
Victoria	29,382	-1.6%
Western Australia	11,058	-4.4%

 

*All sales data is supplied courtesy of the FCAI and the EVC.

Over the last couple of years, we’ve seen dozens of new EV models as the market has grown, but serious off-road 4WDs have remained stubbornly diesel-dominated.

That’s about to change, and we have a chance to spend some time with the first two models. Enter Denza B5 – both are a BYD brand, which of course delivered the very popular BYD Shark 6 last year, selling over 18,000 in 2025. While not a full EV, the B5 represents one of the most serious electrified alternatives yet to diesel 4WDs.

This plug-in hybrid is geared towards adventuring families and comes packed with 3 tonnes of towing, going straight after the very popular Diesel Toyota Prado.

Looks-wise, it looks like many other premium off-roaders, but the 2026 Denza B5 is different. I recently drove it from Adelaide to the Flinders Ranges. 

This wasn’t a normal run around the city where many Diesel off-roaders spend most of their time. It was a 500-kilometre trek into the heart of the Australian Outback, taking on some serious on and off-roading adventures over two days.

Starting with the price, which is the big surprise. It starts at $74,990 plus on-roads. That puts it right against the base Toyota Prado. 

Having said that, the Denza B5 offers twice the power and much more tech that’s generations ahead. It feels like a bargain compared to European luxury rivals.

The B5 is a plug-in hybrid with a twist. Similar to the BYD Shark 6, it uses BYD’s Dual Mode Off-road (DM-O) platform.

Under the bonnet is a 1.5-litre turbo engine. It works with two powerful electric motors. Together, they produce 425 kW and 760 Nm.

On the highway out of Adelaide, it felt very zippy off the line, closer to a sports car. It was similar to what I got when I tested the Shark 6 in Marysville, Victoria, in 2024. A ute wasn’t supposed to be this quick but it was.

Similarly, the Denza B5 hits 100 km/h from a standstill in just 4.8 seconds. That is quite a thing to experience for a three-tonne SUV, it certainly gives Prado buyers something new to consider.

The transition between petrol and electric is seamless. You get 90 km of pure EV range for the city from a 31.8 kWh BYD Blade Battery pack.

It also supports 10-80% DC charging times of around 20 minutes, with charging speeds up to 100 kW.

On the road, the total range can be up to 1,000 km for those travelling occasional long distances, like the drive up to Wilpena Pound.

Speaking of the drive up the state, it was quite an experience. On the inside, the B5 packs quite a bit of luxury. Even as the heat outside was getting up as we approached the middle of the day into the afternoon, the Nappa leather seats were ventilated, and the aircon worked like it was built for the Outback. 

On top of that, there is even a built-in fridge in the console. It kept my drinks ice-cold during the trip up, and I didn’t even need to think about setting it every time I got back into the car. That’s something most variants of the Prado just don’t have. 

The B5’s massage seats also give it a much more premium feel, and of course, like most premium BYD and Denza products, there is a large 15.6-inch screen, which I must say has the best in-car software of any 4WD I’ve ever been in. 

Along with that, there is a 16-speaker Devialet sound system, which I felt was not too bad for most music, although bass-loaded and punchy beats felt a bit muffled in the short time I spent with it, that’s of course comparing it to sound systems found in Tesla, Volvo and others with Premium audio on the market.

While on the road, the head-up display worked really well and with navigation on, it projected the directions clearly, even against the much brighter sun past the town of Hawker, nearly 400 km north of Adelaide. 

Looking at the space in the B5, it’s more than enough on both rows, and after spending a bit of time on the back too, on some long stretches up to the Flinders Ranges, it was very comfortable, especially thanks to the flat floor, which makes the back seat feel like a lounge.

The following day, we hit the off-road tracks near Wilpena Pound. The B5 and the engineering behind it felt like that’s what it was made for. It didn’t feel like a soft-roader but more of a body-on-frame vehicle, designed for these rugged tracks. 

Unlike the BYD Shark 6, the Denza now packs front and rear diff locks. It even has a tank turn function for tight trails.

Another big seller for the B5 is the very unique DiSus-P hydraulic suspension that you get on the Leopard variant, with pricing starting at $79,990 before on-roads. 

On the rocky climbs of the Flinders, I raised the ride height to 310 mm, which absorbed the corrugated tracks without any dramas. 

The steepness of most terrain didn’t pose much of an issue, thanks to this suspension and the approach angle of 39 degrees with suspension raised. 

On the descent, it was very similar to the departure angle of 35 degrees, combined with the 360-degree view you get on the screen, even an amateur off-roader like myself could get through the tracks, knowing the tech inside would help if we ran into trouble.

The 790 mm wading depth gave me confidence that even on terrain with creek crossings, it’d drive through . It lacks the legendary feel of a LandCruiser, but the tech makes off-roading accessible.

Having said all that, no car is perfect. The B5 is quite heavy, and you feel that weight in high-speed corners. The steering is a bit light for my liking, too, but then again, the steering could likely be stiffened. Where the B5 still has something to prove is long-term durability. Buyers cross-shopping a Prado or LandCruiser are often thinking in decades, not just features. Denza will need to demonstrate reliability in harsh Australian conditions over time

Towing capacity is rated at 3 tonnes, slightly below the Prado’s 3.5-tonne figure. For buyers regularly hauling large caravans or heavy trailers, that difference may matter, though for most use cases it’s unlikely to be a limiting factor.

The 2026 Denza B5 proved itself in the dirt, and it handled the adventure up to the Flinders without a single rattle. It is quiet, powerful, and very capable on and off-road.

Serious electrified off-roaders have been a long time coming. The B5 isn’t a gimmick or a novelty, it’s a genuinely capable alternative in a segment that has barely moved beyond diesel.

It is an extremely capable alternative for Australian drivers hitting the suburbs and the bush. For buyers wanting luxury and electrification without diesel, it makes a compelling case.

ELECTRIFIED vehicle sales – including those with hybrid, plug-in hybrid, hydrogen fuel cell and battery electric powertrains – are making ground on the total share of diesel models sold Down Under. 

 

Data collated from the Federal Chamber of Automotive Industries (FCAI) VFACTS report and the Electric Vehicle Council (EVC) most recent statistics show electrified vehicle sales now trail those of all diesel-powered vehicles sold by just 8716 units – or 0.7 per cent of the total number of vehicles sold for the 2025 calendar year. 

 

And while diesel numbers remain steady as a whole, the data shows electrified vehicle share is consistently eroding that of petrol-powered models, which have decreased in volume by 4.4 per cent since the start of the decade. 

 

It is a trend that appeared to accelerate late last year, as in December 2025, electrified vehicles edged ahead of their petrol counterparts by 499 units and outdid diesel by nigh-on 6900 deliveries. 

 

In 2025, Australian new vehicle buyers purchased a total of 475,279 petrol-powered vehicles, 54,070 fewer than at the beginning of the decade. By contrast, diesel-powered vehicle sales have increased by 73,594 units, led largely by the popularity of dual-cab light commercial utilities. 

 

But by far the largest incremental shift is in the uptake of electrified vehicles. Combined, sales of all electrified models have increased by a staggering 293,848 units against the 2020 calendar year, an uptick of 473.6 per cent. 

 

VFACTS data shows 199,133 hybrid vehicles were sold in 2025, a 16 per cent share of all vehicle sales for the calendar year, and a five-year increase of 239.9 per cent. 

 

Plug-in hybrid vehicle sales reached 53,484 units at the end of last year, up 3,063 per cent. 

 

Battery electric vehicle sales compiled from VFACTS and Electric Vehicle Council (EVC) data – due to Polestar and Tesla reporting exclusively to EVC since July 2024, following a dispute with the FCAI over New Vehicle Efficiency Standard lobbying- have increased from 1769 units at the start of the decade to 103,270 units at the end of 2025, or 5737.8 per cent up since 2020. 

 

However, the 2025 result marked a reduction from the 114,672 battery electric vehicles sold in 2024, their popularity most likely eroded by plug-in hybrid sales, which more than doubled to 53,484 units last year. 

 

On the whole, the figures indicate a marked shift in buyer preference toward greener vehicle technologies as a greater number of more affordable ‘new energy’ entrants arrive in the market. 

 

It is a trend that will continue in the years ahead as the federal government’s New Vehicle Efficiency Standard wields an increasingly big financial stick against vehicle importers that sell a lot of high-emitting models. 

 

With penalties on higher-polluting vehicle types expected to inflate retail prices of diesel- and petrol-powered models commensurately, it is indubitable that the trajectory of electrified vehicle sales will continue its steady ascent. 

 

Electrified vehicles catch up to diesel as petrol flatlines

 

*Data supplied courtesy of the FCAI and EVC