Diesel ute and SUV sales crunched as buyers look to go electric

Electric vehicle sales in Australia have reached a new peak, accounting for 20 per cent of all new vehicle sales in May 2026, signalling a significant shift away from traditional petrol and diesel-powered vehicles. This surge follows a sharp rise in fuel prices, prompting buyers to reconsider their options and increasingly favour battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Concurrently, sales of diesel vehicles have declined by 13.1 per cent compared to the same period last year, with petrol vehicle sales also falling by over 45,000 units in the first five months of 2026. The decline is particularly pronounced in the diesel light commercial vehicle segment, where sales of diesel utes have dropped by 16.4 per cent year-on-year. Popular models such as the Toyota Hilux have seen a reduction of more than 2,600 units sold in 2026, a trend that may be influenced by the recent introduction of the Hilux electric ute, which has begun deliveries albeit in limited numbers. Ford has also experienced a downturn, especially in its higher-priced 4x4 variants, reflecting a broader hesitation among buyers to commit to diesel-powered commercial vehicles amid persistently high fuel costs. Meanwhile, the market is witnessing a growing interest in electrified alternatives, particularly PHEV utes like the BYD Shark 6, which has expanded its range to include a Performance variant capable of towing 3.5 tonnes and a cab-chassis model tailored for fleet use. BYD’s success is evident in the sale of over 25,000 Shark 6 utes within just over a year, and this momentum is expected to continue as aftermarket accessories and services make these vehicles more attractive to traditional diesel ute buyers. The shift suggests a gradual but steady transition in the light commercial vehicle market towards electrification. Industry observers note that the future trajectory will depend on how manufacturers respond to these changing consumer preferences. Toyota, for instance, faces the challenge of whether to ramp up production of its electric Hilux to offset declining diesel sales. With more than 70,000 drivers having switched to electric vehicles in the first five months of 2026 alone, many of whom are unlikely to return to internal combustion engines, the automotive landscape in Australia appears to be firmly moving towards cleaner, more sustainable transport solutions.