BYD on top in evolving Australian EV market as competition heats up
20 March 2026
BYD kicked off 2026 at the peak of an expanding Australian electric vehicle (EV) market. But as both battery-electric vehicle (BEV) and plug-in hybrid (PHEV) demand soared year-on-year in January, is a new challenger emerging? James Roberts, Autovista24 web editor, finds out.
January saw 10,335 new BEVs and PHEVs sold in Australia, according to the latest data from EV Volumes. This ensured a year-on-year increase of 94.1%.
BEVs remained the most popular electrified powertrain in the country, making up 71.6% of total sales. Overall, 7,404 vehicles made their way to customers in January. A 91.3% year-on-year upswing ensured the best start to a year for all-electric vehicle sales.
Although commanding a smaller slice of Australia’s EV market, PHEV popularity is proving strong. January confirmed this trend, as 2,931 units were registered. This marked a 101.6% year-on-year increase, amounting to an additional 1,477 models.
Some of the growth in the Australian EV market is due to the entries of BYD and Geely, and Kia, to flourish. January saw new models from both carmakers occupy the top slots. This has been fostered by an increase in vehicle options. Aggressive pricing strategies from these incoming manufacturers has also increased competition, as reported by CarExpert and CarsGuide.
Meanwhile, previously dominant BEV players, such as Tesla, and PHEV providers, like Mitsubishi and Mazda, have seen their market share eroded.
BYD best of the BEVs
January saw BYD models occupy six positions in the top 10 best-selling BEVs. This top-end-of-the-market eclipse was achieved through a combination of established and newer models.
The BYD Sealion 7 marked 12 months on the Australian EV market as the most popular BEV in January. The fully electric mid-sized SUV shifted an impressive 1,171 units in the month. This meant it held a 15.8% BEV market share.
The BYD Atto 2 followed in second place. In just its third month on the market, the B-segment SUV has enjoyed an auspicious start in Australia. During January, 562 vehicles were delivered, securing a 7.6% market share. Cumulative sales of the Atto 2, since its launch in November 2025, stood at an impressive 1,458 units, according to EV Volumes.
A third Australian market newcomer from BYD made a notable impact in 9th place. Debuting in December 2025, the BYD Atto 1 made a splash in January with 245 deliveries and a 3.3% market share. Competitively priced and aimed at urban driving, the fortunes of this small BEV’s appeal will be something to watch in 2026.
Familiar BYD models succeed in Australia
The BYD Seal, a relative Australian market veteran, claimed fifth spot in January’s BEV rankings. A total of 295 sales underpinned a 467.3% year-on-year boost in volumes, plus a 2.7 percentage point (pp) rise in market share to 4%.
Meanwhile, in eighth, the established BYD Dolphin secured a 3.7% market share, up 1.5pp, with272 sales. This marked a 220% surge in sales compared to 12 months prior.
The BYD Atto 3 rounded out the top 10. First introduced to Australian customers in November 2022, the Chinese carmaker’s first venture into Australasia has proved enduringly popular. In January, this pioneering entry-level EV sold 234 units, marking a 122.9% volume upswing year on year.
In total, BYD sold 2,779 new BEVs in Australia during January, giving the Chinese brand an impressive 37.5% market share. This was an impressive 1,048.3% increase year-on-year, highlighting the brand’s growth in the country.
Who is battling BYD in Australia?
Behind the leading two BYD models, the Geely EX5 emerged as a robust challenger in January, placing third.
Available in Australia since March 2025, one month after BYD’s Sealion 7. the mid-size SUV has enjoyed consecutive monthly triple-digit sales. It kicked off 2026 with 418 deliveries and a 6.6% BEV market share.
Geely-owned EV brand Zeekr followed in fourth with its 7X. Launched in September 2025, its appeal could further grow this year. Launched in September 2025, the all-electric SUV has disrupted the established order. As a faster-charging alternative to both the Tesla Model Y and the BYD Sealion 7, its appeal could grow this year.
Sales strategies of Geely and Zeekr models are aligned under the ‘One Geely’ global framework. January’s strong performance in Australia from Geely-adjacent models chimed with plans to expand its global automotive market footprint.
Core aims include becoming a top-five player in the global automotive market, with 75 % of all vehicles produced heading to export markets.
Additionally, the company is looking to focus on new-energy vehicles, spanning A-to E-model segments. Like BYD, Geely currently offer both BEVs and PHEVs in Australia, suggesting this EV market competition could heat up in 2026.
Tesla’s shaky start to 2026
Mirroring many global EV markets, Tesla’s EV market share in Australia has declined notably. Amid increased competition, this was reflected in January’s overall BEV sales.
The US manufacturer’s Model Y witnessed a 38.1% year-on-year volume slide. In total 288 units reached customers in Australia, carving out a 3.9% market share, a sizeable 8.1pp fall compared to 12 months prior. Similarly, the Tesla Model 3 ended up 12th in the BEV best-sellers rankings with 213 sales.
Korean carmaker Kia also saw its leading BEV ebb in popularity. With 281 deliveries, the Kia EV5 saw a 2.8% year-on-year volume drop. This resulted in an overall BEV market share of 3.8%, down 3.7pp compared with 12 months prior.
Despite this, Kia has refreshed its BEV catalogue for 2026. Since starting deliveries in March 2025, the Kia EV3 has enjoyed monthly triple-digit sales, ending up 14th in January. After one month on the market, the Kia EV4 shifted 58 units.
Geely breaks up BYD’s PHEV party
As with Australia’s BEV market, BYD provided the best-selling PHEVs in January. However, Geely disrupted a top-four clean sweep for the Chinese carmaker.
The BYD Shark continued an unbroken span of 12 months at the sales summit. A dominant presence was underpinned by consistent four-digit monthly volumes.
In January, the dual-cab pickup sold 1,108 units, according to EV Volumes. This ensured a healthy 37.8% share of the market.
A more established BYD model in the shape of the BYD Seal 6 claimed second place. A total of 706 sales in January signalled a 63% increase in volumes year on year. This also ensured a 24.1% market share, down from 29.8%.
Mirroring the BEV table, Geely secured third place in the PHEV table. Sandwiched by four rival BYD models, the Geely Starray EM-i moved 305 units in January, securing a 10.4% market share.
The C-segment SUV has recorded strong monthly totals since it began recording volumes in Australia in September 2025.
Two BYD models, which only debuted in January, followed Geely’s Starray EM-i. In fourth place, the seven-seat BYD Sealion 8 recorded 247 sales, capturing 8.4% of the market. This was followed by the smaller Sealion 5 finished fifth, touted as the cheapest PHEV SUV available domestically, according to Driving Enthusiast. It accounted for 161 units and a 5.5% market share.
Established names lose market traction
BYD’s attractive price options are continuing to erode the appeal of more established carmakers in the Australian PHEV market.
The second most popular PHEV in 2024, the Mazda CX-60, ended up seventh in January. It saw a year-on-year volume dive of 52.3% with 62 units sold. Coupled with this, a market share of 2.1% resulted in a 7.8pp decline.
Similarly, 2023’s best-selling PHEV, the Mitsubishi Outlander, ended up sixth, with 64 new units sold. This ensured a sobering year-on-year volume drop of 59.7%, plus a dive in market share fell from 10.9% in January 2025 to just 2.2% one year later.
Rounding out the top 10, previously strong PHEV performers struggled in January. In eighth place, a 62.8% year-on-year sales decline for the MG eHS saw a market share slide of 8.3pp to just 1.9%. Meanwhile, the Lexus NX and Mitsubishi Eclipse Cross captured 0.6% of the market, respectively.
