But 19 firms, including some of the country's best-selling brands, failed to meet the pollution standards and could face multimillion-dollar penalties within three years.
Popular car manufacturers Mazda, Hyundai, Honda, General Motors, Nissan and Subaru and luxury brands Porsche, Ferrari, Maserati and Rolls-Royce were among the companies that failed to meet emission targets.
The New Vehicle Efficiency Standard Regulator released the details in its first performance report, which covered new-vehicle emissions from July to December.
The standard, introduced in January 2025 in a bid to cut transport pollution, sets emissions targets for passenger cars and light goods vehicles brought into Australia.
Across the industry, both vehicle types performed better than required, with passenger cars producing an average of 114 grams of carbon per kilometre compared to a target of 144, while light goods vehicles produced 199 grams of carbon against a goal of 214.
Forty of 59 car companies under the scheme met or exceeded the target and earned credits, with BYD making more than six million credits and Toyota and Tesla amassing more than two million credits each.
At the other end of the scale, Mazda earned the biggest liability, equivalent to $25.4 million, followed by Nissan ($10.7 million) and Subaru ($6.9 million).
The penalties must be paid in three years under the standard, although brands can reduce the sums by purchasing credits from other firms or reducing fleet emissions during that period.
The results proved automakers could cut pollution, Electric Vehicle Council chief executive Julie Delvecchio said, and should give policymakers confidence to strengthen targets.
"Emissions are coming down, cleaner and more affordable cars are arriving in Australia, choice is expanding and EV sales are growing," she said.
"That's exactly the momentum we need to reach five million EVs on our roads by 2035."
Emission reduction targets will increase annually under the scheme, reaching 117 grams of carbon per kilometre for passenger vehicles in 2026 and 180 grams for light goods vehicles.
More vehicle brands were bringing low-emission vehicles to Australia, Federal Chamber of Automotive Industries chief executive Tony Weber said, but electric vehicle sales needed to rise to meet supply.
"The key to long-term success of the (scheme) relies on increased demand for EVs," he said.
"At the moment, demand for EVs remains subdued and this is a major concern and disappointment for car makers."
Electric vehicle sales rose from 7.4 to 8.3 per cent of new car sales in Australia during 2025, and hybrid and plug-in hybrid vehicles also grew in popularity, making up 21 per cent of the market.
