Business
31 May, 2025
PHEV sales plunge
THE axing of the fringe benefits tax (FBT) exemption for plug-in hybrid electric vehicles (PHEVs) has resulted in a drop in sales of the model.
The latest VFACTS data shows a sharp decline in sales of plug-in hybrid electric vehicles (PHEVs) following the removal of the fringe benefits tax (FBT) exemption for these models at the end of March.
During April, 2601 plug-in hybrids were bought, representing 2.9 per cent of sales. This is down from 4.7 per cent of sales year to date to March 2025.
FCAI chief executive Tony Weber said the figures highlighted 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. Removing that support has led to an immediate and disappointing drop in demand in a price-sensitive vehicle market,” he said.
In April, FCAI members reported battery electric vehicle sales that made up 5.9 per cent of the market. This modest result reinforces the scale of the challenge ahead as Australia seeks to meet its emissions reduction goals under the New Vehicle Efficiency Standard (NVES).
“For NVES to succeed, it must be supported by holistic policy settings that assist consumers to move to zero and low-emission technologies, including continued investment in recharging infrastructure,” Mr Weber said.
Australians bought 90,614 new vehicles during April, a decrease of 6.8 per cent on the same period in 2024. Toyota was No.1 with sales of 19,380, followed by Ford (7334), Mazda (6573), Kia (6303) and Hyundai (5547).
