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12 Jun 2023

Model Y Is Overtaking Model 3 to Become Dominant Player in Australia’s EV Market

12 Jun 2023  by thedriven   
EV sales have really started to take off in Australia with May data from FCAI showing EVs making up 7.7% of all vehicle sales. Out of the 8,124 EVs sold during the month, Tesla once again dominated making up 55% of the overall sales in May.

It was a ground breaking month for the Tesla Model Y too, being crowned the best selling SUV of any type in Australia and the best-selling non-ute vehicle sold during the month.

It is now starting to catch up on the previous flagship EV, the Model 3 – with 8,442 sales in the year to date compared with the Model 3s 10,117. The Model 3 sales are expected to slow as its refresh, known as Project Highland, starts to take shape and begins production.

Tesla Model Y best-selling EV – three months in a row

The Tesla Model Y has now been the best-selling EV in Australia for three months in a row – with 7,211 deliveries compared to 4,519 Tesla Model 3 sedans.

SOURCE: FCAI VFACTS

Part of its attraction over the Model 3 has been due to the sustained demand for SUVs, and also the attractive FBT exemptions which the Model Y qualifies for.

This demand could be further accelerated if the federal government announces federal incentives to further encourage the adoption of electric vehicles.

The Model Ys delivered to Australia are made in Shanghai, and so far 18,845 have been delivered to Australian customers, up to the end of May since deliveries started in June last year.

As Tesla has ramped up production in Shanghai after the Covid lockdowns last year ended, the leading EV maker has also increased the proportion of Model Ys it produces compared to Model 3.

According to a report from cnevpost, Tesla exported 35,886 EVs in April. Out of these, 13,587 were Model 3s while the Model Y made up 22,299 vehicles.

IMAGE: WU WA ON YOUTUBE

All these factors will lead to Tesla Model Y dominating the Australian EV charts, just as it has globally during Q1 by becoming the world’s best-selling car, knocking Toyota Corolla off the top spot.

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