Motorists are slamming the brakes on petrol and diesel cars, with their purchases dropping by as much as 30 per cent.
Figures from the Federal Chamber of Automotive Industries and Electric Vehicle Council revealed the extent of the trend on Wednesday, showing hybrid, plug-in hybrid and electric cars made up more than 46 per cent of all new cars sold during May.
Australians bought more than 21,300 electric vehicles during the month, representing almost one in every five new cars sold, and setting a record for the third month in a row.
Hybrid vehicles also proved popular with drivers, as sales of plug-in hybrid cars more than tripled and conventional hybrid vehicles grew by 11 per cent.
The low-emission sales surge follows significant petrol and diesel price hikes in March fuelled by conflict in the Middle East, and comes one month before the fuel excise discount is due to expire.
The swift switch to more fuel-efficient vehicles showed Australians were eager to avoid further price shocks, chamber chief executive Tony Weber said.
"The shift is particularly evident in the SUV segment, where consumer preferences are changing rapidly," he said.
"Today's SUV buyer is increasingly choosing hybrid, plug-in hybrid, and electric options."
In SUVs, plug-in hybrid sales surged by 377 per cent during May and electric SUVs grew by 167 per cent.
By comparison, petrol-powered SUVs slowed by 31 per cent, and diesel models dropped by 41 per cent.
Across all types of vehicles, motorists bought 30 per cent fewer petrol cars during the month, although they still represented more than one in every four vehicles sold.
Toyota remained the most popular automaker in Australia during May, followed by electric vehicle brand BYD, Ford and Hyundai.
Tesla claimed the title of Australia's best-selling vehicle for the month, with its Model Y making 5605 sales, toppling the Ford Ranger (4474), Toyota HiLux (4005), and Toyota RAV4 SUV (3865).
The record-breaking sales represented a milestone for battery-powered vehicles, Electric Vehicle Council chief executive Julie Delvecchio said, and showed consumers recognised the cars could save them money.
"When fuel prices hurt, people look for alternatives," she said.
"May 2026 is an important moment for Australia's EV transition."
Governments should focus on expanding Australia's charging stations, Mr Weber said, to ensure they kept pace with the electric car sales boom.
"Charging infrastructure rollout must accelerate if Australia is to maintain consumer confidence and support continued uptake," he said.
"Continued investment and enabling policy settings will be essential."
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