Motorists are continuing to hit the brakes on petrol car purchases as the cost of fuel transforms the Australian automotive market.
Figures released by the Federal Chamber of Automotive Industries on Thursday revealed drivers bought 13,200 fewer petrol-powered cars in October than a year earlier, while sales of fuel-efficient models accelerated.
Electric vehicles outsold their petrol counterparts in October again, while sales of hybrid and plug-in hybrid vehicles also surged.
The trends come amid ongoing conflict in the Middle East and sustained high prices for petrol and diesel since fighting began in February.
Despite the rising costs and interest rates, however, Australians bought more new cars in October 2026, purchasing 107,493 new vehicles — 6.7 per cent more than last year.
The rise demonstrated the strength of the Australian car market, Federal Chamber of Automotive Industries chief executive Tony Weber said, and the growing number of vehicle brands, technologies and prices available.
“Despite continuing pressure on household budgets and higher borrowing costs in 2026, the October result shows there is extraordinary resilience in new vehicle demand,” he said.
“Consumers are making rational choices and are attracted to options that reduce their costs.”
Motorists bought more than 24,800 new electric cars during the month, representing 23.1 per cent of all new vehicles, up from 7.3 per cent in 2025.
Plug-in hybrid vehicles also more than doubled in popularity, with more than 11,700 sales during October, and hybrid car sales rose slightly to reach more than 18,400 sales.
But petrol vehicle purchases dropped by 35.9 per cent compared to 2025, and diesel vehicles were down by 14.7 per cent.
The ongoing trend showed motorists were considering running costs when buying new cars, Electric Vehicle Council chief executive Julie Delvecchio said.
“EV sales are soaring because Australians are voting with their wallets,” she said.
“They want cars that are cheaper to run, great to drive, and give them freedom from the petrol bowser.”
Having more fuel-efficient cars on the road could take pressure off inflation, Ms Delvecchio said, and she urged the federal government to retain tax breaks for electric vehicles.
Despite the trend, two utes emerged as the best-selling vehicles in October, with Toyota’s HiLux topping the list, followed by Ford's Ranger.
Two electric cars, the Tesla Model Y and BYD Sealion 7, ranked in fourth and fifth place respectively.
Toyota also led the Australian market, with 20,649 sales, while BYD followed by 10,025, and Ford with 7310.
