Electric cars made up more than one in every five new vehicles sold during July, falling just short of June's record, according to figures released by the Federal Chamber of Automotive Industries and Electric Vehicle Council on Wednesday.
But growing sales for hybrid, plug-in hybrid and electric cars pushed the automotive market to a sales record for July, with motorists purchasing more than 108,000 new vehicles.
The result came despite the declining popularity of diesel and petrol-powered cars, and as fuel prices rose due to continuing conflict in the Middle East and the removal of the government's fuel excise discount.
After setting sales records for four months in a row, electric cars dipped slightly to make up 21.7 per cent of all new vehicles sold in July, down from a record of 23.3 per cent.
Together with hybrid and plug-in hybrid electric models, low-emission cars made up almost half of all sales during the month at 48 per cent.
By contrast, petrol car sales dropped by 30 per cent and diesel vehicles fell by 21 per cent in July compared with the same month in 2025.
Strong interest in fuel-saving vehicles powered Australia's automotive market during the month, although their rapid growth could deliver shocks down the road, chamber chief executive Tony Weber said.
''There is a risk that the rapid increase in electric vehicle uptake in 2026 will outpace the supply of public charging infrastructure,'' he said.
''Governments and the private sector must work together to ensure that the public charging network meets growing demand, particularly in regional areas and for motorists who do not have access to charging at home.''
Four electric cars ranked among Australia's 10 best-selling vehicles for July, including the Tesla Model Y, in third place, BYD Sealion 7, Geely EX5, and the Zeekr 7X.
Continuing strong electric car sales defied expectations and showed consumers had made a choice to avoid rising fuel prices, Electric Vehicle Council chief executive Julie Delvecchio said.
''After a record end-of-financial-year month, we expected softer numbers in July but the underlying trend remains clear,'' she said.
''Australians are increasingly choosing electric vehicles, drawn by lower running costs, less exposure to petrol price shocks, and a growing range of models.''
BYD again ranked as Australia's second-most popular automotive brand during July, but long-time leader Toyota pulled ahead of the car maker with an almost 20 per cent market share.
Toyota also claimed the top two spots on the monthly sales chart, with its RAV4 SUV and HiLux ute leading the pack.
