Australia's new vehicle market has demonstrated remarkable resilience at the start of 2026, recording 87,092 sales in January—a modest 0.3% increase over the previous year.
Data released by the Federal Chamber of Automotive Industries reveals a stabilising market where consumer appetite for SUVs and passenger cars remains healthy, despite a cooling in the light commercial sector.
The highlight of the month was the accelerating transition toward low-emission motoring.
While petrol vehicle sales slumped by 14%, plug-in hybrids surged by a staggering 170.5%, now accounting for nearly 6% of the market.
Combined with hybrids (17.4%) and battery electric vehicles (8.4%), electrified options now represent nearly a third of all new deliveries.
FCAI CEO Tony Weber noted that while demand for pure electric vehicles has stabilised, the "rapid growth" in plug-in hybrids suggests Australians are seeking a practical bridge to full electrification.
Geographically, the market was split; Victoria and New South Wales saw growth of 6.3% and 2.3% respectively, offsetting double-digit declines in Western Australia and the Northern Territory.
With China now firmly entrenched as the second-largest source of vehicles behind Japan, the 2026 outlook remains competitive as new brands continue to enter the fray.