Australia's electric vehicle market is poised for a significant transformation in 2026, with a wave of new models set to arrive, including Mazda's first battery-powered offering. However, industry experts are cautioning that proposed regulatory changes, including a potential road-user charge, could severely hamper the sector's rapid growth and undermine national emissions reduction goals.
A Flood of New Electric Choices for Consumers
This year will see more than ten new electric cars enter the Australian market, dramatically expanding consumer choice. The influx includes everything from record-breaking budget hatches to high-performance luxury vehicles and highly anticipated electric utes. According to the Electric Vehicle Council, more than 153 electric and plug-in hybrid models were already on sale in 2025, with many more queued for launch.
Traditional automotive brands are finally joining the charge. Mazda has confirmed it will launch its first electric vehicle, the Mazda 6e sedan, in mid-2026, featuring a rear motor and a promised range exceeding 500km. Toyota, meanwhile, has cut the price of its bZ4X SUV and confirmed the launch of an electric version of its top-selling HiLux ute in the first half of the year.
Professor Hussein Dia, a future urban mobility expert at Swinburne University, welcomed the increased competition and choice. "Market forces are going in the right direction," he said. "It's good to have more lower-priced models on the road." He suggested the new vehicle efficiency standard introduced in January 2025 has spurred many carmakers to accelerate their EV plans to avoid penalties for exceeding emissions targets.
Regulatory Storm Clouds Threaten EV Momentum
Despite the positive market shift, significant regulatory uncertainty looms. The federal government is considering two major changes that could impact EV adoption: a review of the fringe benefits tax exemption for electric cars and the potential introduction of a road-user charge.
Treasurer Jim Chalmers announced the review of the tax exemption, which has been in place since 2022 and has been used for almost 100,000 electric car purchases. Simultaneously, a road-user charge is on the national agenda, which would apply to EV drivers who currently do not pay the traditional fuel excise.
Professor Dia warned that introducing new charges and removing incentives before electric cars constitute 30% of new car sales could drastically slow adoption. "I hope it doesn't end up being just an electric vehicle tax and that it will be an opportunity to revisit the whole taxation system," he stated, advocating for a broader, more equitable approach. Such moves could make it difficult for Australia to meet its target of cutting emissions by 62% to 70% by 2035.
Ten Electric Cars Arriving on Australian Roads in 2026
The new models set to debut this year promise to cater to a wide range of needs and budgets:
- BYD Atto 1 ($23,990): Positioned to be Australia's cheapest EV, this hatchback offers a 220km range and fast-charging capability.
- Polestar 5 ($171,000): A luxury sports car rivaling Porsche, capable of accelerating from 0-100km/h in just 3.9 seconds.
- Hyundai Elexio: A futuristic mid-sized SUV with a battery range over 500km.
- Honda Super-ONE: A compact urban vehicle designed for city driving, launching in the second half of the year.
- Mazda 6e: The Japanese brand's first EV, a sedan with a 500km+ range arriving mid-year.
- Toyota HiLux EV: The electric iteration of Australia's favourite ute, priced between $90,000 and $100,000.
- Kia PV5: An electric van with up to 412km of range, joining Kia's lineup late in 2026.
- Suzuki e-Vitara: Suzuki's first mass-produced EV, an SUV with an estimated 400km range.
- XPeng X9: A seven-seat people-mover from the Chinese brand, expected in the second half of the year.
- Leapmotor B05: A five-door electric hatchback with a 361km range and rear-wheel drive.
The public consultation on the future of the electric car discount is open until 5 February 2026. The outcome will play a critical role in determining whether Australia's EV revolution continues at pace or is stalled by new fiscal barriers.
