The Federal Chamber of Automotive Industries (FCAI) reveals that there has been a decrease in the sales of plug-in hybrid electric vehicles since the fringe benefits tax (FBT) exemption for the model was removed.
On 1 April, the Australian Government announced that plug-in hybrid vehicles are not considered a zero or low emissions vehicle under the fringe benefits tax law. As such, these vehicles are not eligible for the electric cars exemption.
During April, 90,614 new vehicles were purchased in Australia — representing a 6.8% decrease compared to the same period in 2024.
Of the total, 2,601 plug-in hybrid electric vehicles (PHEVs) were purchased representing 2.9% of sales. This figure marks a 4.7% decrease from sales year to date to March 2025.
A plug-in hybrid EV combines a gasoline engine with an electric motor and a rechargeable battery. The vehicle operates on electricity for a certain distance and then switches to gasoline for longer trips.
EVs comprise various minerals including lithium, nickel, cobalt, manganese and graphite.
A 2020 study conducted by Elements reported that the largest mineral content in an electric car battery was graphite, followed by aluminium, nickel, copper and steel. Chasing Cars notes that lithium makes up about 3.2% of an entire battery’s chemical structure.
FCAI members say that battery EV sales make up about 5.9% of the market. As such, the FCAI says the latest sales results reinforce the scale of the challenge ahead as Australia seeks to meet its emissions reduction goals under the New Vehicle Efficiency Standard.
CEO Tony Weber says the figures highlight the impact of government policy decisions on consumer behaviour in the automotive market.
“The earlier inclusion of PHEVs in the FBT exemption played a critical role in making these vehicles accessible to more Australians,” Weber says.
“Removing that support has led to an immediate and disappointing drop in demand in a price sensitive vehicle market.”
The FCAI adds that Toyota was the market leader during April with 19,380 sales. Ford was ranked second with 7,334 sales, followed by Mazda and Kia which reported 6,573 and 6,303 sales, respectively.
The top selling vehicle in Australia last month was the Toyota HiLux with 4,121 sales, followed by the Ford Ranger with 4,031 sales.
The FCAI is the peak representative organisation for companies who distribute new passenger vehicles, light commercial vehicles and motorcycles and all-terrain vehicles in Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Unsplash
