Electric vehicle sales surge to a record in March as fuel costs bite

The figures, cited by the National Australian Novated Leasing and Salary Packaging Association (NALSPA), bring the year-to-date BEV (battery electric vehicles) share to 11.8 per cent of all new car sales, marking a structural shift in buyer behaviour that the industry body attributes to a convergence of rising fuel costs and federal tax incentives.

The latest sales data released today comes on the heels of Tesla and Polestar revealing last week combined first-quarter 2026 sales of 7,725 vehicles, a 40 per cent increase on the same period last year.

NALSPA CEO Rohan Martin says the record month has been driven by what he describes as a "fuel crisis" hitting household budgets at the same time as the federal government's Electric Car Discount - a fringe benefits tax exemption on novated leases for eligible electric vehicles - removes traditional barriers to EV ownership.

"A fuel crisis and the Electric Car Discount are converging at the perfect time to drive a genuine shift in how Australians think about transport," says Martin.

However, the Federal Chamber of Automotive Industries' chief executive Tony Weber has cautioned that the March increase may simply reflect short-term influences.

“It is too early to determine whether this represents a structural shift in the market," says Weber.

"More consumers are considering EVs due to the disruption to fuel supply caused by conflict in the Middle East, along with the review into the fringe benefits tax concession for EVs.

“The automotive industry would welcome a sustained shift to EVs, given its substantial investment in bringing more than 100 EV models to the Australian market and the industry’s efforts to meet ambitious NVES targets."

NALSPA members reported March as their strongest month on record for BEV orders, with battery electric vehicles making up the majority of novated leases written during the period, well above the roughly 50 per cent share seen in a typical month.

"Our members are telling us March was their biggest month ever for BEV orders and it wasn't just early adopters," says Martin.

"We're seeing essential workers, average and below-average income earners, used EV buyers, and workers in outer suburban and regional areas all coming through the door."

The demographic broadening of EV demand beyond higher-income urban buyers represents a shift that Martin attributes directly to the novated leasing pathway, which spreads costs across regular pay cycles and eliminates the need for a lump-sum purchase.

"The Electric Car Discount via novated leasing is not a perk for the wealthy; it is the most effective, budget-neutral policy tool Australia has ever had to cut transport emissions and cost of living at the same time," he says.

The March result comes as fuel prices remain elevated across much of Australia, with supply disruptions and price shocks adding urgency to the cost-of-living calculus for households weighing up their next vehicle purchase.

In announcing the boost in Polestar and Tesla sales last week, Electric Vehicle Council CEO Julie Delvecchio described the industry as being at a "tipping point".

"The fuel crisis hasn’t created interest in EVs, it’s accelerated a shift that was already under way," she said.

"Our website saw almost 100,000 page views in the past month, up 71 per cent, with 97 per cent of visitors new to our site. The most visited page? ‘EVs available in Australia.’

"Australians are ready – the industry needs to meet them there.”

Meanwhile, Weber says that ensuring infrastructure keeps pace with consumer demand is "critical to enabling sustainable growth in EV adoption beyond short-term influences".

“A long-term shift to EVs will require Australian governments to sharpen their focus on public charging infrastructure, particularly in regional areas and locations where home charging is not practical," he says.