According to VFACTS October 2025 data, Australian car sales continued to climb, with over 99,000 new vehicles registered nationwide. Hybrid and plug-in hybrid (PHEV) models led the growth, becoming the top choice for Australian car buyers.
Hybrids accounted for almost 18 percent of total sales, rising 25 percent year-on-year, while plug-in hybrids jumped 95 percent. Battery electric vehicles (BEVs) maintained steady demand at around 7 percent of total new car sales. The data confirms that Australians are increasingly turning to hybrid and electric vehicles for better fuel efficiency, lower emissions, and access to government incentives.
Why Hybrid Growth Matters for Novated Leasing
This shift in buyer preference has direct implications for Australians using or considering a novated lease. Hybrids and EVs are now among the most cost-effective vehicles for salary packaging and fleet management due to reduced running costs and FBT exemptions for eligible models.
- Lower Running Costs: Hybrids use less fuel and often require less maintenance than traditional petrol cars. This can reduce the total cost of ownership within a novated lease structure.
- Tax Savings: With the EV FBT Exemption, eligible electric and plug-in hybrid vehicles may offer greater after-tax savings for employees compared to petrol or diesel models.
- Employer Benefits: Businesses offering EV novated leasing or hybrid leasing options can strengthen their sustainability goals while attracting talent that values environmentally conscious benefits.
- Flexibility and Accessibility: Hybrid models give drivers more flexibility, especially in areas where EV charging networks are still growing.
What the Data Means for Australian Drivers
The VFACTS report highlights a broader trend across Australia. Major cities such as Sydney, Melbourne, and Brisbane are seeing the highest adoption rates of h`ybrid and electric vehicles, supported by more workplace charging infrastructure and EV-friendly salary packaging programs.
Regional and fleet operators are also turning to hybrids and PHEVs, attracted by improved fuel efficiency and the potential for fleet-wide cost reductions through novated leasing arrangements. This makes hybrid vehicles one of the most popular novated lease choices in Australia.
How to Compare Hybrid and EV Lease Options
Whether you are an individual employee or managing a company fleet, understanding how a novated lease works is crucial. You can use Fingo’s novated lease calculator to estimate repayments, tax savings, and the total cost difference between hybrid, EV, and petrol models.
If you are exploring EV novated leasing for the first time, Fingo’s guide on EV novated lease explains eligibility, savings, and key benefits under current Australian tax rules.
Final Insights on Australia’s Growing Hybrid and EV Market
Hybrid and electric vehicles are no longer niche segments. The latest VFACTS data proves they are reshaping Australia’s automotive market and influencing how drivers finance cars through novated leasing. For Australian employees, this means more savings and smarter ownership choices. For employers, it offers a chance to modernise salary packaging programs while reducing fleet emissions.
Use the novated lease calculator today to see how much you could save by switching to a hybrid or EV under a novated lease in Australia.