Tesla's EV market share in Australia has dropped below 50 pct in the latest month, as lower cost Chinese brands gain market share. Includes sales data for all models.

Shifting Tides: Unraveling the Dynamics of Australia's Electric Vehicle Revolution

Tesla Supercharger - Rockhamptom QLD

Australia has achieved a noteworthy milestone in the electric vehicle (EV) landscape, recording sales exceeding 80,000 units in 2023—a substantial leap from the previous year. However, the dynamics of the EV market are undergoing a transformation, notably reflected in Tesla's market share dropping below 50 per cent in November, opening the door for the rise of affordable Chinese EV alternatives.

As reported earlier this week, November witnessed the sale of 8,646 fully electric cars in Australia, constituting 7.7 per cent of the total new car market. This brought the total EV sales for the year to an impressive 80,446 units, capturing 7.2 per cent of the new car market.

While the Tesla Model Y continues to assert its dominance as the leading electric car, accounting for 3,151 sales or 36 per cent of all electric sales for the month, a decline in Model 3 sales has contributed to Tesla's EV market share slipping to 46 per cent in November. The Model 3, now in third place behind the newly launched MG4—possibly due to customer anticipation of the upcoming 2024 Model 3 refresh—has led to Tesla's second-lowest monthly market share since reliable statistics were first compiled.

This evolving market scenario signals increasing competition, particularly from Chinese car manufacturers introducing three new models with variants priced under $40,000 before on-road costs. The emphasis on affordability is reshaping consumer preferences, with these new entrants gaining attention and influencing the trajectory of Australia's EV market.

The changing dynamics underscore the dynamic nature of the electric vehicle sector, as consumers explore diverse options and market players adjust strategies to remain competitive in this rapidly evolving segment.

Tesla are still dominating the year-to-date market, with Model Y sales at a staggering 28,000. That's a huge 70% over the Model 3. Combined both vehicles have accounted for just over 55% of total EV sales in Australia in 2023.