Plug-in hybrid electric vehicle sales slump in April after Labor's subsidies end
Aussie drivers are turning their backs on hybrid electric cars after Labor's subsidy ended, sending sales for the vehicle plummeting.
New data from the Federal Chamber of Automotive Industries showed a sharp decline in sales of plug-in hybrid electric vehicles after the fringe benefits tax exemption for the car-type ended.
About 2600 plug-in hybrids were purchased in April, making up 2.9 per cent of sales.
This was well below the 4.7 per cent market share of sales plug-in hybrids made up between the start of 2025 and March.
FCAI's chief executive Tony Weber said the substantial drop showed the critical role the government's subsidies played in boosting hybrid vehicle sales.
'The earlier inclusion of plug-in hybrid electric vehicles in the FBT exemption played a critical role in making these vehicles accessible to more Australians,' Mr Weber said.
'Removing that support has led to an immediate and disappointing drop in demand in a price-sensitive vehicle market.'
He also warned the downturn in hybrid-vehicle sales exposed challenges facing Labor as it looks to hit emissions reductions targets under the New Vehicle Efficiency Standard – a government initiative to limit vehicle emissions.
'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.
News Corp's head of motoring content David McCowen said the silver lining of the hybrid car slump is an array of sales could be coming for consumers as a result.
'I think we're going to see a lot of deals coming on,' Mr McCowen said.
'Car companies are really struggling to move product at the moment and June is always an amazing time to buy a car, as everyone tries to get their numbers up before the end of the financial year.'
Toyota was the market leader in April with 19,380 sales while Ford (7,334 cars sold) came second and Mazda (6,573 cars sold) followed.
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