A change to fringe benefits tax rules has triggered a sharp fall in plug-in hybrid electric vehicle (PHEV) sales, according to new industry figures.
The Federal Chamber of Automotive Industries (FCAI) reported that just 2,601 PHEVs were sold in April 2025. This figure accounts for 2.9% of all new car sales – well below the 4.7% average over the previous 12 months. The drop came after the government removed the FBT exemption for these vehicles at the end of March.
FCAI boss Tony Weber said this highlighted how crucial consistent policy is for encouraging the take-up of low-emission vehicles. Battery electric vehicles made up 5.9% of April sales, which Weber described as modest given the new NVES rules encouraging cleaner cars.
Overall, total new vehicle sales in April reached 90,614 units, marking a 6.8% decline year-on-year. Despite the sharp fall in PHEV sales, Toyota maintained its dominance, topping the sales charts. Followed by Ford and Mazda. The Toyota HiLux retained its crown as the best-selling vehicle in Australia, continuing its strong appeal among tradies, businesses, and rural drivers.
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