EV sales in Australia slump back to 6.9 percent of market
Electric vehicle sales in Australia have slumped in the month of July, rocked by a dramatic plunge in the number of Tesla EVs sold, and despite a strong showing by China’s BYD which emerged as the market leader for the latest month
The latest data from the Federal Chamber of Automotive Industries (FCAI) and Electric Vehicle Council (EVC) shows that 7,129 battery electric vehicles were sold in Australia in July.
This was off the back of a total of 104,244 vehicles sold during the month.
It meant that full battery EVs made up just 6.9 percent of the total Australian market, down from a record 10.3 percent in June which was buoyed by a strong showing from all makers, particularly with the new Tesla Model Y and end of financial year bonuses across the market.
The July 2025 EVs made up 6.6 percent of the market. The big difference now is that other EV makers have grown their share, but the sales of Tesla have plunged, so much so that the BYD Sealion 7 SUV had almost three times as many sales as the Tesla Model Y in July, making it the best-selling EV in the market for the month.
In May and June, the new Model Y saw more than 7,000 deliveries across the country, and the Model 3 lifted sales with the help of multiple incentives. But in July, only 555 Model Y units were sold.
Tesla sales often dip in the first month of a new quarter, but the scale of this reduction will stun market observers.
So far this year, EV sales have totalled 54,364 in Australia – although some car makers such as XPeng have not published their data. This compares to the 2024 total over the first 7 months of 57,648.
The slight fall in overall EV numbers compares to the 41 per cent plunge in Tesla numbers year on year, as the market continues to reshape. In July, PHEV sales declined from previous months, with 4,031 PHEVs sold during the month, down from 6,220 PHEVs sold in June, and 2,219 a year ago.
Looking into the EV models that made up the top 5, the BYD Sealion 7 outsold the Tesla Model Y with 1,427 sales compared to the Model Y’s 555 sales. The more affordable Geely EX5 came in third with 490 sales, down from its high in June when the new brand sold 822 cars.
The Kia EV5 accounted for 462 sales, and was Kia’s best-selling EV during the month by far. Rounding out the top 5 is the Tesla Model 3 with 362 sales.
Other notable mentions in July include the Hyundai Ioniq 9 which saw 14 sales during the month, as well as MG’s new premium offerings, the IM5 and IM6, which also made it onto the sales list this month with 18 and 35 sales respectively.
The best-selling EVs in July 2025 were:
- BYD Sealion 7 – 1,427 sales
- Tesla Model Y – 555 sales
- Geely EX5 – 490 sales
- Kia EV5 – 462 sales
- Tesla Model 3 – 362 sales
- BYD Atto 3 – 276 sales
- BYD Dolphin – 275 sales
- BYD Seal – 273 sales
- Kia EV3 – 251 sales
The Driven is waiting to hear back from various manufacturers regarding sales of some EV models, including MG and BMW, and this will be updated once they are received.
FCAI CEO Tony Weber, who has opposed the federal government’s support of EVs, issued a statement underlining the performance of PHEVs, the preferred option for many legacy car makers.
“With more than 50 models available in 2025, plug-in hybrids have emerged as an important transition technology for many Australians, particularly those in regional areas or those with limited access to charging,” he said. “They offer the ability to drive short distances on electric power while retaining the flexibility and range of a conventional engine.”
The sales results in July have already sparked a round of new incentives, including from Tesla, hinting at EV prices dropping further in the coming months.
This will create a good environment for new and used EV sales as we head out of winter.
See full details of EV sales for each month of the year in our database here.
See more here thedriven.io
Header image: Wheelsboy
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