Australians can expect to see more electric utes, sports cars and hatchbacks that break price records at both ends of the spectrum, with changes encouraging even the most reluctant brands to join the trend.
But the electric vehicle market could also experience significant regulatory upheaval in 2026, with a road-user charge on the national agenda and a review of tax exemptions.
Both moves could have a significant effect on the local automotive industry, experts say, and on Australia’s target to cut emissions between 62% and 70% by 2035.
More than 153 electric and plug-in electric cars were on sale in Australia during 2025, according to the Electric Vehicle Council, but many more are queued up to arrive this year.
They include several models from BYD, such as an electric hatchback poised to post a price record at $23,990, and a high-end luxury sports car from Polestar that promises to reach 100km/h in less than four seconds.
Traditional auto brands are also expected to add to Australia’s electric options after Mazda announced plans to launch its 6e sedan, and Toyota cut the price of its bZ4X SUV update and confirmed the launch of an electric HiLux ute.
More competitive prices and choices would be welcomed by consumers, Swinburne University future urban mobility professor Hussein Dia said, after years of challenges and constrained supply.
BYD will launch its Atto 1 electric vehicle in Australia in 2026. Photograph: AAP
“Market forces are going in the right direction,” he said. “It’s good to have more lower-priced models on the road.”
Some of the launches appeared to be inspired by the new vehicle efficiency standard introduced in January, Dia said, and carmakers’ efforts to avoid being penalised for exceeding their emission targets.
Sales of new electric, plug-in hybrid and hybrid vehicles had all increased during the year, according to the Federal Chamber of Automotive Industries and Electric Vehicle Council, while petrol and diesel car sales fell.
Regulatory changes could alter that trajectory, however, after the treasurer, Jim Chalmers, announced a review of tax exemptions for electric cars in place since 2022.
Almost 100,000 electric cars had been bought through the exemption, Chalmers said, which had exceeded expectations.
A road-user charge is also being considered by the federal government, which could apply to electric vehicle drivers who currently do not pay fuel excise.
Introducing charges and removing discounts before electric cars made up 30% of new car sales could slow adoption, Dia said, and make reaching environmental goals difficult.
“I hope it doesn’t end up being just an electric vehicle tax and that it will be an opportunity to revisit the whole taxation system,” he said.
“We would like it applied to all vehicles.”
A public consultation into the electric car discount will be open until 5 February.
Ten electric cars arriving in Australia in 2026
BYD Atto 1
($23,990): This hatchback could be the cheapest electric car on the market when it arrives in Australia, with the base model promising a range of 220km and fast-charging.
Polestar 5
($171,000): This Porsche rival packs in plenty of luxury features. The base model comes with two motors and will hit 100km/h in 3.9 seconds.
Hyundai Elexio
Due early in the year, this mid-sized SUV features a futuristic design and a battery that promises to travel more than 500km per charge.
Honda Super-ONE
It might look like a toy car but this compact vehicle is real, has been designed for urban driving and will launch in the second half of 2026.
Honda will launch its Super-ONE electric car in Australia this year. Photograph: AAP
Mazda 6e
The popular Japanese car brand will add an electric sedan to its fleet in mid-2026. The 6e will feature a rear motor and a range of more than 500km.
Toyota HiLux EV
Australia’s most popular car brand will deliver an electric version of its HiLux ute in the first half of 2026. Its price is tipped to fall between $90,000 and $100,000.
Kia PV5
An electric van will join Kia’s lineup of SUVs and sedans late in 2026, and promises a range of up to 412km from its base model.
Suzuki e-Vitara
Suzuki’s first mass-produced electric vehicle will arrive early in the year and in the shape of an SUV. Its price is yet to be revealed but its base model could feature a 400km range.
XPeng X9
The latest vehicle from this Chinese brand is a seven-seat people-mover expected to arrive on roads in the second half of the year.
Leapmotor B05
The B05 is a five-door electric hatchback due midway through the year. It will feature a rear-wheel motor and 361km base range.
We took the KGM Musso, Australia’s first ‘affordable’ electric ute, to Bunnings – video
