Australia’s car market is shifting quickly, with hybrid vehicles reaching a record share of new car sales while traditional petrol cars continue to lose ground.
New figures released by the Australian Automobile Association (AAA) show that petrol-electric hybrids made up 19.13% of all new light vehicle sales in the final quarter of 2025.
That equals 55,458 hybrid vehicles sold between October and December.
It is the highest share ever recorded for hybrids in Australia, surpassing the previous record of 16.7% set in the September quarter of 2024.
Petrol cars fall to record low
While hybrid sales surged, traditional internal-combustion engine vehicles — including petrol and diesel cars — continued to decline.
According to the AAA data, these vehicles accounted for 66.3% of new car sales in the December quarter.
That is the lowest quarterly share ever recorded, dropping from nearly 70% in the previous quarter.
The figures highlight how Australian drivers are gradually shifting away from purely petrol-powered cars.
Plug-in hybrids also rising
Sales of plug-in hybrid electric vehicles (PHEVs) also reached a new high.
A total of 15,411 plug-in hybrids were sold during the quarter.
That represents 5.32% of the market, beating the previous record of 4.82% set earlier in 2025.
Plug-in hybrids combine electric driving with a petrol engine, allowing drivers to switch between battery power and traditional fuel.
Electric vehicle growth slows slightly
Fully electric vehicles — known as battery-electric vehicles (BEVs) — saw a small drop in market share.
Their share slipped from 9.7% to 9.25% in the final quarter of 2025.
Despite that slight decline, the September quarter saw 29,298 battery-electric vehicles sold, the highest quarterly sales total recorded.
Hybrids now leading the transition
While electric cars briefly outsold hybrids during parts of early 2023, the trend has now reversed.
Hybrids have outsold fully electric vehicles for 10 consecutive quarters.
Industry analysts say hybrids are often viewed by buyers as a practical middle step between petrol cars and fully electric vehicles.
They offer improved fuel efficiency without requiring charging infrastructure.
What it means for Australia’s car market
The data suggests Australia’s vehicle transition is moving toward low-emission technology, but not exclusively toward fully electric cars.
Instead, hybrids are currently playing a major role in reducing fuel consumption while offering drivers a familiar driving experience.
As government emissions policies tighten and fuel prices fluctuate, experts expect demand for fuel-efficient vehicles to remain strong.