EV sales August 2023: Tesla and MG4 shine amid record car sales 

A little more than 55,000 new battery electric vehicles (BEVs) rolled onto Australian roads this year, but market share fell to just 6% from its June high of 8.8%, according to the latest data from the Federal Chamber of Automotive Industries (FCAI).

As total new car sales in August 2023 surged by 15.4% to reach 109,966 units, the second-highest monthly total for the year, BEV sales remained under the 7,000 mark for August (6,984). The majority of these were SUVs (4,967) accounting for 8% of the broader SUV market, underscoring Australia's ongoing preference for higher-seated vehicles be it large or small.

What was Australia’s best-selling electric car in August 2023? 

Of these, almost half were Tesla's Model Y, which continued to assert its dominance in the EV space, albeit with a slight hiccup. The electric crossover fell out of the list of the top 5 best-selling cars for the month but still managed to secure 2,314 sales.

Tesla's Model 3followed closely, reclaiming the second spot for BEVs from the BYD Atto 3 with 995 sales. Overall, Tesla sold a total of 3,309 vehicles in Australia in August, maintaining its position as the eighth best-selling marque overall for the year, with 32,820 vehicles sold so far.

As of August, BYD has added 8,074 cars to the EV market in 2023 with 803 deliveries of the Atto 3, placing it third in EV sales. Following behind at number four was the Volvo XC40 Pure Recharge with 382 sales in August. Together with the C40, just shy of 3,000 Volvo EVs have hit the road in 2023 so far.

MG4 electric hatchback sales debut

One of the most noteworthy developments was the appearance of the MG4 as deliveries commenced to customers. This sub-$40,000 variant sold 296 vehicles in August, placing it immediately in the fifth spot among BEVs, and setting the stage for potentially larger deliveries for the rest of the year. The Kia EV6 and Polestar 2 recorded 243 and 225 sales respectively.

The MG4's performance is particularly significant given that it competes in a market segment historically dominated by Tesla and other luxury brands, heralding a coming onslaught of smaller and more affordable EVs which for the moment includes the GWM Ora and the BYD Dolphin.

Meanwhile the MG sold 193 ZS EVs, a disappointing 6% of its ZS compact SUV sales, perhaps explained by the fact that its incoming MG4 is more affordable and built on an electric-only platform. What it lacks in cargo space (1,177 litres with the seats down, compared to 1,375 litres in the ZS EV) it makes up for in price, a longer wheelbase and an extra 3cm or so in girth.

What lies ahead?

While EVs are growing rapidly in numbers (from a low base), the slight dip in market share can be attributed to an increase in internal combustion engine (ICE) sales. FCAI CEO Tony Weber noted, "As consumers continue to embrace low emissions technologies, we are seeing growth in electric, plug-in, and hybrid vehicle sales." More than one in six vehicles sold in August featured low emissions technologies.

The coming months are expected to be pivotal for the Australian EV market. Tesla is expected to have larger delivery numbers, which could help boost overall EV uptake for the year. However, the delay of the introduction of the Highland Model 3 until January 2024 could potentially create a vacuum that other brands might capitalise on.

In addition, with Tesla opening 30 of its Supercharger network to other EV brands, more drivers may consider purchases of non-Tesla vehicles. In summary, although August 2023 saw Tesla continue its dominance of the local market, the rise of models like the MG4 indicates a diversifying market that is increasingly open to more affordable options.