Chinese EV brand smashes Tesla in Aussie market as most popular cars revealed

Elon Musk’s car company continues to take big hits with new data showing sales are down 76 per cent in Australia.

Chinese electric vehicle brand BYD is continuing to smash Tesla in Australia, with sales of Elon Musk’s car company down 76 per cent compared to this time last year.

BYD’s Shark Ute – a hybrid SUV – was the sixth best-selling car in the country in March as “weekend warriors” snapped up the large vehicle.

But the brand’s rapid rise has been stymied by the end of the fringe benefits tax (FBT) for plug-in hybrid EVs (PHEVs) in April, with the Shark Ute dropping out of the top 10.

BYD, however, was the 10th most popular brand overall for the month.

BYD’s Seal electric car at a showroom. Picture: Jung Yeon-je/AFP

Meanwhile Tesla sales hit 500 in April compared with 2077 in the same month last year, data from the Electric Vehicle Council revealed.

There was an overall slump in the number of new cars bought by Australians in April compared to 12 months ago, dropping 6.8 per cent to 90.614.

At 2601 units, plug-in hybrid SUVs accounted for 2.9 per cent of all sales – down from 4.7 per cent in March 2025.

Elon Musk’s association with Donald Trump has seen his company take huge hits. Picture: Mandel Ngan/AFP

“The earlier inclusion of PHEVs in the FBT exemption played a critical role in making these vehicles accessible to more Australians. Removing that support has led to an immediate and disappointing drop in demand in a price-sensitive vehicle market,” Federal Chamber of Automotive Industries (FCAI) chief executive Tony Weber said.

According to the FCAI, the top sellers in April were the Toyota HiLux, Ford Ranger, Toyota RAV4, Ford Everest and Toyota Prado.

That meant four of the top five were diesel utes and sports utility vehicles.

The backlash against Mr Musk’s political associations with Donald Trump and far right groups in Europe has continued to see sales plummet alongside share prices.

Diesel SUVs dominated the top sellers. Picture: Mark Bean

So far in 2025, Tesla sales are down 62 per cent in Australia at a mark of 5660 – in the first four months of 2024 that was 14,866.

The Australian Financial Review reported in March that Jacob Falkencrone, the global head of investment strategy with Saxo Bank, pinpointed Mr Musk as the problem.

“Elon Musk has always been one of Tesla’s greatest assets – but is he starting to turn into a liability?

“His increasingly vocal political stances and erratic behaviour have alienated some traditional buyers. Investors are asking whether Musk’s personal brand is starting to weigh on Tesla’s business.”

Mike Costello, corporate affairs manager at Cox Automotive Australia, told news.com.au last month that Australia would be hit with “an avalanche” of Chinese EVs this year.

“China’s EV sector is many, many years ahead of everybody else,” he said.

BYD is planning a huge expansion. Picture: Pedro Pardo/AFP

“And so as a result of that, you’ve got this absolute avalanche of Chinese manufacturers seeking new markets to sell their cars into, and a lot of them look to Australia as a really good first step, because unlike America and unlike Europe, Australia doesn’t have any trade barriers.

“There’s no tariffs that we put on Chinese cars. We’re an open market. We’re a very established market. T

“here’s lots of dealers here who are happy to sell vehicles under agreement, and geographically, it’s quite close to Asia as well. So Australia really is kind of the first step for a lot of these brands.”

EVDirect, BYD’s local distributor, has set an ambitious goal of selling 45,000 vehicles this year and doubling the number annually.