Off and racing! EV sales surge in March 2026 amid fuel crisis – but Tesla still trails 2024 highs

April 2, 2026 EV Central team

Electric vehicle demand is surging across Australia in 2026, driven by record fuel prices and growing concerns about energy security, according to new data released by the Electric Vehicle Council.

The figures show Tesla and Polestar delivered a combined 3645 vehicles in March 2026, up 21.1 per cent year-on-year and 6.6 per cent higher than February, as motorists respond to rising petrol prices triggered by instability in global oil markets.

Across the first quarter, the two brands sold 7725 vehicles, representing a 40 per cent increase compared with the same period in 2025.

The spike comes as Australians grapple with sharply higher fuel costs – often exceeding $3.00 a litre – following escalating tensions and supply disruptions linked to the war in the Middle East, a situation that has highlighted the vulnerability of petrol and diesel supply chains.

Electric Vehicle Council chief executive Julie Delvecchio said the latest results reflected a broader shift in consumer behaviour, suggesting the renewed interest in EVs could be here to stay.

“With fuel prices rising, every EV on the road is doing something simple but powerful – taking pressure off fuel supply for the people who need it most,” she said.

She added that Australians were increasingly viewing EVs not just as an environmental choice, but as a practical way to cut household costs, with potential savings of up to $3000 per year on running expenses (anecdotal evidence suggests the savings can be much higher).

However, despite the strong growth, the March 2026 result still lags well behind the extraordinary surge seen in March 2024, when Tesla in particular recorded a delivery boom that set a high-water mark for EV sales in Australia. The latest figures suggest the market is recovering and expanding – but has not yet returned to those peak levels.

Industry feedback suggests supply constraints, model changeovers and broader market normalisation have all contributed to the gap compared with 2024’s standout performance.

Tesla Australia and New Zealand country director Thom Drew said demand remained strong, with local stock quickly being cleared and more vehicles on the way.

“The fuel crisis is pushing Australians to look for more certainty – both on energy and cost of living – and EVs are delivering exactly that,” he said.

Polestar Australia managing director Scott Maynard echoed the sentiment, noting a sharp rise in showroom traffic and test drive bookings as consumers respond to the changing economic environment.

The broader market is also showing signs of momentum. Used EV sales are rising rapidly and used EV prices have increased, while finance demand has surged, indicating a widening pool of buyers entering the segment.

Other brands, including Volkswagen, Hyundai and Audi, reported growing interest in electric models as customers seek to reduce operating costs and insulate themselves from volatile fuel prices.

“Hyundai is seeing a clear increase in consumer interest in electric vehicles as Australians respond to rising petrol prices and heightened global fuel market uncertainty,” said Gavin Donaldson, Huindai Australia chief operating officer. “These conditions are accelerating the shift toward EVs, which offer lower running costs, greater energy security and reduced exposure to international supply shocks.”

A fuller picture of the Australian EV market is expected to emerge after the Easter break, with sales figures from other brands due to be released early next week.

Those numbers are expected to reinforce these early sales figures, suggesting the EV surge is broad-based across the industry.

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