Record EV momentum continues as NALSPA points to cost pressures and Electric Car Discount

September sales reinforce the EV shift

Australian buyers took delivery of 26,287 battery-electric vehicles during September 2026, according to sales data from the Federal Chamber of Automotive Industries and the Electric Vehicle Council reported by AutoTalk Australia. The National Automotive Leasing and Salary Packaging Association (NALSPA), the peak body for the novated leasing industry, says cost-of-living pressures and volatile petrol prices are encouraging more Australians to make the switch to electric. ¹

"Facing cost-of-living pressures, working Australians are looking for practical ways to make their household budgets go further and protect themselves from volatile petrol prices," NALSPA chief executive Rohan Martin told AutoTalk Australia. He argued that an EV can deliver substantial savings on running costs, but that households first need to be able to afford the switch, which is where the Electric Car Discount continues to make a difference. ¹

How the Electric Car Discount works

The Electric Car Discount provides a fringe benefits tax exemption for eligible electric vehicles supplied through employers, including through novated leasing arrangements. Under the policy described in NALSPA's comments, employees can pay lease repayments and eligible running costs from pre-tax salary on qualifying vehicles. ¹³

A novated leasing explainer published by smart.com.au sets out the current eligibility conditions: the vehicle must be fully electric or hydrogen fuel cell, first registered on or after 1 July 2022, priced below the Luxury Car Tax threshold for fuel-efficient vehicles ($91,661 in FY2026-27) and not previously had Luxury Car Tax applied at importation or sale. ³

June's record month set the benchmark

The September result follows a record June 2026, when more than 32,500 battery-electric vehicles were sold and EVs accounted for more than 23 per cent of all new vehicle sales, according to FCAI and Electric Vehicle Council figures cited by NALSPA in coverage by Paint & Panel. That share was a threefold increase on the 7.6 per cent recorded in June 2025 and lifted EV market share above the previous monthly record set in May. ²

smart.com.au's July 2026 report put the June battery-electric share at a record 23.3 per cent, and noted that when hybrids and plug-in hybrids were included, electrified vehicles made up 49.5 per cent of the market — almost one in every two new vehicles sold. The same report recorded BYD at a record 18,881 Australian deliveries in June according to VFACTS, more than double its June 2025 result, with the Sealion 7 alone selling 4,730 units. ³

Discount's cumulative impact

NALSPA estimates the Electric Car Discount has helped add more than 100,000 electric vehicles to the national fleet since its introduction, against an original aim of around 5000 EVs in its initial years. The association, reported by the Australian Fleet Managers Association (AFMA), also estimates EVs sold under the program are reducing emissions by between 160,000 and 200,000 tonnes of CO2-e annually, and that the discount is responsible for at least half of all EVs sold in Australia today. ⁴

The same AFMA report credits the policy with expanding model availability, reducing average EV prices by 8.6 per cent and driving a six-fold increase in second-hand EV sales since the policy began. Battery-electric market share has risen from 1.4 per cent in 2021 to 8.3 per cent in 2025, according to NALSPA's figures. The association also noted that Australia's EV market share remains about 40 per cent below comparable economies, and cited the Climate Change Authority's view that Australia needs 20 times more EVs on the road within the decade to meet climate targets. ⁴

Who is buying, and policy outlook

Martin told AutoTalk Australia that the postcodes recording the highest uptake of the discount are in outer suburbs of Sydney, Melbourne and Brisbane, where rooftop solar adoption is above state averages and home battery installations are increasing. He said Australian households installed a record number of rooftop solar systems and home batteries during the first half of the year, and that pairing an EV with solar and battery storage gives families greater control over transport costs and reduces exposure to international oil markets and fuel-price shocks. ¹

NALSPA estimates Australians who obtained an EV through the discount between mid-2022 and mid-2026 will have collectively saved $609 million on fuel by Christmas, a figure the association attributes to lower running costs. Martin described this as money families can put towards groceries, bills and housing costs. ¹

On policy, smart.com.au's July 2026 report noted the Federal Government had announced the Electric Car Discount would continue in full until 31 March 2027, with some changes to apply after that date. NALSPA is calling for the discount to continue as proposed by the Albanese Government from April 2027, according to AutoTalk Australia. In the Paint & Panel coverage from June, Martin also argued that maintaining policy support would be essential to continued EV adoption, and called for greater investment in public, workplace and home charging infrastructure. ¹²³

NALSPA also pointed to a growing model range as a driver of demand. In the June 2026 coverage, Martin said newer brands including Zeekr, Jaecoo and Geely were becoming increasingly popular choices among Australians purchasing electric vehicles through novated leases, alongside the effects of GST savings and lower taxable income under novated leasing arrangements. ²