Motorists can expect to see more electric utes, sports cars and small hatchbacks arrive on local roads, including vehicles that could set new price records at both the affordable and luxury ends of the market.
At the same time, proposed regulatory changes, including a possible road-user charge and a review of tax exemptions, could reshape how electric vehicles are bought and owned in Australia.
Big year ahead for electric models
More than 153 electric and plug-in electric vehicles were on sale in Australia during 2025, according to the Electric Vehicle Council, with many more scheduled to arrive in 2026.
Among them are several new models from Chinese car maker BYD, including an electric hatchback priced at $23,990 that could become Australia’s cheapest electric car.
At the other end of the scale, Polestar is preparing to launch a high-performance electric sports car that promises to reach 100km/h in under four seconds.
Traditional car brands are also expanding their electric offerings. Mazda has confirmed plans to launch its 6e electric sedan, while Toyota has cut the price of its updated bZ4x SUV and locked in the arrival of an electric HiLux ute.
Prices easing as competition grows
Swinburne University future urban mobility professor Hussein Dia said growing choice and more competitive pricing would be welcome after years of supply constraints.
“Market forces are going in the right direction,” he told AAP.
“It’s good to have more lower-priced models on the road.”
Some of the new launches appear to be influenced by the New Vehicle Efficiency Standard introduced in January, Prof Dia said, as car makers move to avoid penalties for exceeding emissions targets.
Sales of new electric, plug-in hybrid and hybrid vehicles rose during 2025, according to the Federal Chamber of Automotive Industries and the Electric Vehicle Council, while petrol and diesel vehicle sales declined.
Policy changes loom
Despite the growth, the electric vehicle market could face regulatory upheaval in 2026.
Federal Treasurer Jim Chalmers has announced a review of tax exemptions for electric vehicles that have been in place since 2022. Almost 100,000 electric cars have been purchased under the scheme, exceeding expectations.
A road-user charge is also being considered by the federal government. If introduced, it would apply to electric vehicle drivers who currently do not pay fuel excise.
Both changes could have a significant impact on the automotive industry and on Australia’s target to cut emissions by between 62 and 70 per cent by 2035.
Public consultation on the electric car discount will remain open until 5 February.
10 electric cars arriving in Australia in 2026
BYD Atto 1 ($23,990)
A small hatchback that could become Australia’s cheapest electric car, with a base range of 220km and fast-charging capability.Polestar 5 ($171,000)
A luxury performance sedan with dual motors, capable of reaching 100km/h in 3.9 seconds.Hyundai Elexio
A mid-sized SUV due early in the year, offering a range of more than 500km.Honda Super-ONE
A compact, city-focused electric car launching in the second half of 2026.Mazda 6e
An electric sedan arriving mid-2026, featuring rear-wheel drive and a range exceeding 500km.Toyota HiLux EV
An electric version of Australia’s best-selling ute, expected in the first half of the year, priced between $90,000 and $100,000.Kia PV5
An electric van due late in 2026, offering up to 412km of range in its base model.Suzuki e-Vitara
Suzuki’s first mass-produced electric vehicle, an SUV arriving early in the year with an expected range of about 400km.XPeng X9
A seven-seat electric people-mover from the Chinese brand, arriving in the second half of the year.Leapmotor B05
A compact electric hatchback due mid-2026, with rear-wheel drive and a base range of 361km.
