'Logic becomes clearer': New EV sales record part of trend

Electric Vehicle Council chief executive Julie Delvecchio says continued investment in charging infrastructure is critical to keep up with consumer demand for EVs. (ABC News: Lachlan Bennett)

One in five new vehicles sold in Australia in May was an EV, a monthly sale record.

EVs, along with hybrids and plug-in hybrids, accounted for nearly half of all vehicles sold last month.

Experts say the war in Iran and petrol price surge helped spur on some consumers but a broader market change is well underway.

Demand for electric vehicles is soaring to new heights in Australia, with EVs representing one in five of all new vehicles sold in May.

Fuel security concerns are also pushing consumers away from petrochemical power, with 46 per cent of all new vehicles sold last month being either an EV, hybrid or plug-in hybrid.

Even Australia's most popular vehicle class, the gas-guzzling SUV, is embracing lower-emissions technology, as sales of petrol and diesel SUVs dropped by 31 per cent and 41 per cent respectively, while plug-in hybrid sales soared 377 per cent.

Chief executive of the Federal Chamber of Automotive Industries Tony Weber said "consumer preferences are changing rapidly" in the SUV segment.

"As the number of EVs on the road continues to grow, charging infrastructure must become more of a priority," he said.

Rising sales of EVs are being driven, in-part, by an influx of cheaper cars from Chinese companies like BYD, which has been able to dominate the market thanks to strong state subsidies, technological development and control of the supply chain.

BYD's ship docked in Australia for the first time this week. (ABC News: Lachlan Bennett)

Almost 5,000 of its vehicles arrived in Melbourne this week, the first shipment of almost 30,000 vehicles BYD will send to Australia in the coming months.

Most cars in the first shipment were sold after the war in Iran started, according to chief operating officer Stephen Collins.

"There's no doubt that in March, when the war broke out in the Middle East, there was a significant surge for EVs," Mr Collins said.

"The market's settled back down now but certainly there was strong demand."

BYD will ship 30,000 vehicles to Australia in coming months. (ABC News: Lachlan Bennett)

BYD says it has sold 120,000 vehicles, both electric and petrol-powered, since launching in Australia in 2022 and has more than 100 dealerships in its network.

But, like other Chinese companies, BYD has been treated with suspicion by consumers and politicians alike due to persistent cyber-security fears related to the technology built in