New car sales surge, Hybrids shine but EVs take a dive

Latest figures show that while petrol-electric vehicles are thriving, EV sales have slowed. And one car maker is feeling the pinch more than most.

BYD’s growing range of new energy vehicles already includes the ATTO 3, SEAL, DOLPHIN and SEALION 6 – with two further releases, including the highly-anticipated SHARK ute, on the horizon. Picture: Toby Hagon

Hybrid vehicles were the flavour of the month in July, as electric vehicle demand continued to plateau and utes took a back seat in the sales race.

Toyota’s RAV4 Hybrid SUV was the top-selling car in the country last month, dethroning the Ford Ranger ute and eclipsing Toyota’s own HiLux.

Sales of hybrid vehicles have more than doubled this year, while the phenomenal growth in electric vehicle sales has slowed.

EV sales are still more than 15 per cent up on last year, but they dipped in July as market leader Tesla struggled to shift metal.

Tesla sales were down 34 per cent last month and 13 per cent year-to-date, despite heavy discounting by the brand.

In contrast, cut-price Chinese EV maker BYD is enjoying a surge in popularity. Its sales were up 78 per cent in July and 57 per cent year-to-date. rise year-on-year. It has sold more than 25,000 vehicles in less than two years on sale.

Tesla is under pressure from increased competition. Picture: Mark Bean.

The BYD SEAL, a Model 3 rival, now commands 24.6 per cent of the medium under $60,000 market, second only to Toyota’s Camry (65 per cent) and ahead of popular models such as the Mazda6.

David Smitherman, the chief executive of BYD distributor EVDirect, said the growth was expected.

“As our range expands, we’ve always believed BYD would quickly grow in popularity among Australian drivers.

“We’re not afraid to set ambitious goals because we know Australians are looking at competitive price points, which BYD offers,” he said.

BYD has forecasted selling its 100,000th new energy vehicle in Australia in less than five years since its launch. Picture: GREG BAKER / AFP

Although overall electric vehicle sales have dipped, the introduction of more affordable EVs from Chinese manufacturers is predicted to drive a resurgence later this year.

The market for hybrid vehicles has seen remarkable growth, with sales up by 88.4 per cent and plug-in hybrid vehicle sales soaring by a staggering 128.9 per cent compared to July 2023.

This shift reflects a growing consumer preference for hybrids as a middle ground between traditional internal combustion engines and fully electric vehicles.

Total Vehicle Sales – Year to Date. Source: Federal Chamber of Automotive Industries

Meanwhile the overall new vehicle market continues to demonstrate resilience, with a record-breaking 99,486 sales in July.

This figure surpasses the previous July record by 2.7 per cent, which proves the strength of the market amid rising interest rates and cost of living pressures.

Federal Chamber of Automotive Industries chief executive Tony Weber said the monthly sales figures would have exceeded 100,000 if Tesla and Polestar sales were included in the VFACTS numbers.

“This is a remarkable achievement in an economy featuring widespread cost of living pressure,” he said.

While the first seven months of 2024 have exceeded expectations, Weber said there were challenges ahead.

“The industry remains cautious about the future pending the implementation of the New Vehicle Efficiency Standard coupled with the economic conditions,” Mr Weber said.

Sales growth was strong in News South Wales, Queensland and Western Australia but some regions experienced a decline. Tasmania experienced a 12 per cent decrease and Victoria which dipped 1.6 per cent.

Originally published as New car sales surge, Hybrids shine but EVs take a dive