Image: Tesla
Tesla’s Model Y has once again cemented its dominance in Australia’s electric vehicle market, finishing 2025 as the country’s bestselling EV for the third consecutive year. Tesla Australia and New Zealand confirmed the milestone this week, highlighting the Model Y’s continued appeal despite a more competitive and evolving EV landscape.
The achievement comes against the backdrop of a record-breaking year for Australia’s overall new-car market. Total vehicle sales climbed to 1,241,037 units in 2025, narrowly edging past 2024 and marking the third straight annual record. While top-selling models like the Ford Ranger, Toyota RAV4, and Toyota HiLux all posted year-over-year declines, electric vehicle sales rebounded strongly, rising 13.1% to 103,270 units.
Tesla, however, faced headwinds. Tesla’s overall deliveries in Australia fell roughly 25% year-over-year as new competitors from China, including BYD and MG, expanded aggressively. Even so, the Model Y held firm, recording 22,239 deliveries in 2025 — up 4.6% year-over-year — and securing a spot in Australia’s Top 10 bestselling vehicles overall. Notably, it was the only fully electric vehicle to make that list.
Several factors helped sustain Model Y demand. Tesla started delivering the refreshed, German-made Model Y Performance in Australia late last year, following its regional debut in September. The company also launched a refreshed Model 3 Long Range with a claimed 750 km range and rolled out Full Self-Driving (Supervised) in Australia and New Zealand, briefly offering a significant $5,000 discount on the one-time purchase option. These updates helped keep Tesla’s lineup fresh at a time when the broader market saw demand cooling.
The broader Australian market is also undergoing a structural shift. Hybrids and plug-in hybrids hit record volumes in 2025, while Chinese brands continued to erode market share from long-established automakers. Against that backdrop, the Model Y’s third straight EV crown underscores Tesla’s staying power, even as competition intensifies and pricing pressure increases.
As Australia’s EV market matures and new models continue to arrive, Tesla’s ability to keep the Model Y at the top for three years running is no small feat — and it sets a high bar heading into 2026.
