Motorists can expect to see more electric utes, sports cars, hatchbacks, and vehicles that break price records at both ends of the spectrum, with changes encouraging even the most reluctant brands to join the trend.

But Australia’s electric vehicle market could also experience significant regulatory upheaval in 2026, with a road-user charge on the national agenda and a review of tax exemptions.

Both moves could have a significant effect on the local automotive industry, experts say, and on Australia’s target to cut emissions between 62 and 70 per cent by 2035.

More than 153 electric and plug-in electric cars were on sale in Australia during 2025, according to the Electric Vehicle Council, but many more are queued up to arrive this year.

They include several models from BYD, such as an electric hatchback poised to post a price record at $23,990, and a high-end luxury sports car from Polestar that promises to reach 100km/h in less than four seconds.

Traditional auto brands are also expected to add to Australia’s electric options after Mazda announced plans to launch its 6e sedan, and Toyota cut the price of its bZ4x SUV update and confirmed the launch of an electric HiLux ute.

More competitive prices and choices would be welcomed by consumers, Swinburne University future urban mobility professor Hussein Dia said, after years of challenges and constrained supply.

“Market forces are going in the right direction,” he told AAP.

“It’s good to have more lower priced models on the road.”

Some of the launches appeared to be inspired by the New Vehicle Efficiency Standard introduced in January, Prof Dia said, and car makers’ efforts to avoid being penalised for exceeding its emission targets.

Sales of new electric, plug-in hybrid and hybrid vehicles had all increased during the year, according to the Federal Chamber of Automotive Industries and Electric Vehicle Council, while petrol and diesel car sales fell.

Regulatory changes could alter that trajectory, however, after Federal Treasurer Jim Chalmers announced a review of tax exemptions for electric cars in place since 2022.

Almost 100,000 electric cars had been purchased through the exemption, Mr Chalmers said, which had exceeded expectations.

A road-user charge is also being considered by the federal government, which could apply to electric vehicle drivers who currently do not pay fuel excise.

Introducing charges and removing discounts before electric cars made up 30 per cent of new car sales could slow adoption, Prof Dia said, and make reaching environmental goals difficult.

“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 said.

“We would like it applied to all vehicles.”

A public consultation into the electric car discount will be open until February 5.

See also: 10 new electric cars to watch out for in 2026

AAP