Tesla’s Model Y has once again proven its dominance in Australia’s electric vehicle market, emerging as the country’s top-selling EV for the third consecutive year in 2025. Tesla Australia and New Zealand recently confirmed this milestone, emphasizing the Model Y’s ongoing popularity in the face of increasing competition and a rapidly evolving EV landscape.
The achievement comes amidst a record-breaking year for Australia’s overall new-car market, with total vehicle sales reaching 1,241,037 units in 2025. While top-selling models like the Ford Ranger, Toyota RAV4, and Toyota HiLux experienced year-over-year declines, electric vehicle sales surged by 13.1% to 103,270 units.
Despite facing challenges such as a 25% decrease in overall deliveries in Australia, Tesla managed to maintain strong demand for the Model Y, with 22,239 units delivered in 2025 — a 4.6% increase compared to the previous year. Impressively, the Model Y secured a spot in Australia’s Top 10 bestselling vehicles overall, making it the only fully electric vehicle to achieve this distinction.
Several factors contributed to the sustained demand for the Model Y. Tesla introduced the refreshed, German-made Model Y Performance to the Australian market late last year, following its regional debut in September. Additionally, the company launched a refreshed Model 3 Long Range boasting a claimed range of 750 km, and rolled out Full Self-Driving (Supervised) capabilities in Australia and New Zealand, offering a substantial $5,000 discount on the one-time purchase option. These updates helped keep Tesla’s lineup competitive and appealing amidst cooling demand in the broader market.
The Australian automotive landscape is experiencing a shift towards hybrids, plug-in hybrids, and Chinese brands gaining market share at the expense of traditional automakers. Against this backdrop, the Model Y’s third consecutive win as the top-selling EV underscores Tesla’s enduring strength and resilience in the face of intensifying competition and pricing pressures.
As the Australian EV market continues to mature and new models enter the market, Tesla’s ability to maintain the Model Y’s leadership position for three consecutive years is a significant achievement that sets a high standard for the company as it looks towards 2026 and beyond.