EVs Just Hit 23.4% of Australian Car Sales — What That Means for Your Novated Lease
Tesla and BYD smashed records in June 2026 as EVs reached 23.4% market share. Here's what Australia's EV surge means for novated lease buyers. Read more.
June 2026 was not a normal month for Australian car sales. According to The Driven, Tesla and BYD together shipped more than 19,000 electric vehicles in a single month — the second consecutive record for both brands — pushing EVs to 23.4% of total new car sales nationally. That's not a niche anymore. That's nearly one in four new cars sold in Australia being electric.
For context, this time two years ago EVs were sitting below 10% market share. The shift is accelerating, and the mix of supply, price competition, and policy settings — including the ongoing FBT exemption for eligible EVs under a novated lease — is clearly pulling buyers in.
What this means for novated lease customers
The record sales figures reported by The Driven reflect something novated lease advisers have been seeing on the ground: more Australians are now treating an EV as a practical default, not a novelty. When Tesla and BYD are each moving thousands of units a month in Australia, it means stock availability — historically a blocker — is less of an excuse than it used to be.
For PAYG employees considering a novated lease, the high-volume models from both brands tend to sit within the luxury car tax threshold that governs the FBT exemption, though you should confirm your specific vehicle's eligibility before signing anything. Higher sales volumes also tend to put downward pressure on residual values over time, which is worth factoring into your lease term decision — something worth discussing with a broker rather than assuming away.
The broader takeaway: the window where EVs feel 'early adopter' is closing fast. If you've been waiting to see whether the market matures before committing, June 2026's numbers suggest it largely has.
Common questions
Does the FBT exemption still apply to Tesla and BYD models in 2026?
The FBT exemption for eligible EVs under a novated lease remains in place, but eligibility depends on the vehicle's base price sitting below the luxury car tax threshold at the time of first retail sale. You should verify your specific model's eligibility with a licensed broker before proceeding, as thresholds and policy settings can change.
Does higher EV supply make a novated lease a better deal?
Greater supply generally means more competitive drive-away pricing and shorter wait times, both of which can benefit a novated lease structure. However, it can also affect residual values at end of term. Talk through your term length and residual assumptions with your broker.
Why are Tesla and BYD dominating Australian EV sales?
According to The Driven, both brands posted consecutive monthly sales records in June 2026, driven by pricing, availability, and a broad model range. Their volume means they're also among the most commonly novated EVs in Australia right now.
Is a novated lease the best way to buy an EV in Australia?
For most PAYG employees, a novated lease is the most tax-efficient way to finance an eligible EV because running costs are bundled into pre-tax salary deductions. Whether it's right for you depends on your income, employer participation, and how long you plan to keep the car.
What happens if EV prices keep falling during my lease term?
If market prices fall significantly, the residual value set at the start of your lease could end up higher than the car's actual market value at end of term. This is a genuine risk to understand upfront — a good broker will set residuals conservatively and explain your options.