The sale of plug-in hybrid electric vehicles (PHEV) has more than doubled over the last financial year, climbing 130% as Australian consumers choose low-emission vehicles over traditional combustion engine models.
Regular hybrid vehicle sales were also up 113% compared to the same period last year, partially driven by the effectiveness of government incentives, according to the National Automotive Leasing & Salary Packaging Association (NALSPA), Australia’s peak body for novated vehicle leasing.
Middle-ground option for low-emissions
“Australians want to reduce their carbon footprint and their vehicle running costs but for many making the transition to a full EV is not an option that suits their transport, lifestyle or work needs, especially for those living in regional Australia,” NALSPA chief executive Rohan Martin said.
He says the federal Fringe Benefits Tax (FBT) exemption on novated leases is making plug-in hybrids more accessible to Australians.
“The overwhelming feedback we are getting from our members and their customers is that the FBT exemption is undoubtedly driving Australians across metropolitan and regional locations to get behind the wheel of PHEVs,” Martin continued.
“For many, the FBT exemption makes PHEVs more attractive than their traditional combustion engine equivalent models, especially when reducing emissions is a key consideration.”
SUV and pick-up PHEV sales rise
“PHEVs are offered in a growing range of SUV and pick-up models in particular, which we know are extremely popular in the Australian market,” Martin explained.
“This range will be expanded in the near future with the introduction of new PHEV pick-ups including the Ford Ranger, BYD Shark and Mitsubishi Triton.”
PHEVs accounted for 22% of EV SUV sales in Australia the year to date, up from 10.6% in the first half of 2023.
“Every PHEV purchased drives down Australia’s total transport emissions and that’s critical for our journey to net zero,” Martin said.
“We expect to see plenty more PHEVs flying off the lot this year, and we expect that trend will continue for as long as the FBT exemption remains in place.”