Electric vehicles (EVs) will still only make up less than a third of all new vehicle sales in Australia in the next five years, according to the biggest car brand on our market.
Speaking at a media event for the 2026 Toyota LandCruiser Hybrid, Toyota Australia’s vice president of sales, marketing and franchise operations, Sean Hanley, said EV sales aren’t about to boom.
“Do we think EVs will play a role? One hundred per cent, but they’re not going to be 80 per cent of the market in three to five years,” said Mr Hanley.
“In my opinion, maybe 30 [per cent], maybe a bit more, but that’s about where it’ll sit.”
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The comments came ahead of the Australian federal government’s climate target announcement, which analysts have suggested requires 50 per cent of all new vehicle sales to be EVs by 2035.
Toyota – both globally and in Australia – has followed what it calls a ‘multi-pathway’ approach to electrification, offering a mix of internal combustion, hybrid, plug-in hybrid, battery-electric and hydrogen fuel-cell powertrains.
The automaker was one of few brands not to commit to a significant portion of its total sales being EVs in the early 2020s.
Most car companies have since pulled back on previous EV ambitions after sales didn’t take off as strongly as expected.
“Customers are still going to want to tow vans, they’re still going to have their cars for leisure, they still need them for mining, agriculture and other applications,” Mr Hanley said.
“This [LandCruiser Hybrid] is going to fit exactly into that spot … a further commitment and investment by Toyota in its multi-pathway strategy, technology.”
In Australia, 7.6 per cent of all new vehicle sales in the first half of 2025 were EVs, compared to 7.4 per cent for the full year in 2024 and 7.2 per cent in 2023.
Toyota currently has only one EV in local showrooms, the RAV4-sized bZ4X SUV – while its Lexus brand offers the RZ based on the same platform – but has taken full advantage of a boom in hybrid popularity.
It exclusively offers hybrid powertrains on most of its ‘urban’ focused models, including its best-selling RAV4, dropping petrol-only versions in 2024.
In Australia, hybrid sales skyrocketed by 76 per cent in 2024 (not including plug-in hybrids), making up 14 per cent of all new car sales, with that share continuing in the first six months of 2025.
The LandCruiser Hybrid – the first hybrid for the 300 Series – has been confirmed for Australia in two model grades and is planned for a March 2026 showroom arrival.