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Highlights
- Plug-in hybrid EV sales decline after FBT policy change
- Battery electric vehicles make up nearly 6% of market
- Toyota (ASX:TM) leads April auto sales in Australia
A recent policy shift has triggered a notable dip in plug-in hybrid electric vehicle (PHEV) sales across Australia, with market implications for key automotive players listed on the ASX200. The Federal Chamber of Automotive Industries (FCAI) has reported that the exclusion of PHEVs from the fringe benefits tax (FBT) exemption has contributed to reduced consumer demand, particularly in a price-sensitive market.
As of April, 90,614 new vehicles were purchased in Australia — a 6.8% year-on-year decline. Of this, 2,601 were PHEVs, representing 2.9% of total sales. This marks a 4.7% drop compared to year-to-date figures in March 2025. The change stems from the Australian Government’s 1 April amendment, which removed PHEVs from the electric cars exemption under the FBT law, classifying them as not meeting the definition of zero or low emissions vehicles.
A PHEV combines a traditional internal combustion engine with an electric motor powered by a rechargeable battery. These vehicles are often viewed as a transitional technology between petrol cars and fully electric vehicles. However, with diminishing government incentives, their appeal may be waning.
This shift comes as battery electric vehicles (BEVs) continue to rise modestly, now comprising approximately 5.9% of total new vehicle sales, according to FCAI members. The industry acknowledges that meeting national emissions reduction targets under the New Vehicle Efficiency Standard will be increasingly challenging without supportive policy frameworks.
The underlying technology of EVs is heavily reliant on minerals such as lithium, graphite, nickel, cobalt, and manganese. According to research from Elements, graphite forms the largest part of an EV battery by volume, with lithium accounting for around 3.2% of the battery’s chemical composition.
In April, Toyota (ASX:TM) remained the top-selling car brand in Australia with 19,380 units sold. Ford (ASX:F) followed with 7,334 sales, ahead of Mazda (TYO:7261) and Kia (KRX:000270), which recorded 6,573 and 6,303 sales, respectively. The Toyota HiLux was the nation’s top-selling model, followed closely by the Ford Ranger.
Investors tracking ASX dividend stocks may want to monitor how ongoing EV trends and government policy shifts influence earnings in the automotive sector. With key carmakers impacting the ASX200, the interplay between regulatory policy, consumer demand, and sustainability goals is likely to remain a focal point for market observers.
