Auto sales figures reveal a dip in electric vehicles, accounting for merely 6.9% of the market share following a downturn in Tesla sales and despite a surge in BYD's market position.
Australia's Electric Vehicle Market Shows Dynamic Shifts in July
July 2021 marked a significant turning point in Australia's electric vehicle (EV) market, with some brands experiencing dramatic changes in sales figures.
In a surprising development, the BYD Sealion 7 SUV topped the sales chart for the month, selling a record-breaking 1,427 units. This was followed by the Kia EV5, which accounted for 462 sales, making it Kia's best-selling EV of the month. The Geely EX5 also made a strong showing with 490 sales.
However, the story was different for Tesla. Despite offering financial incentives such as a $3,000 lending incentive, a $3,000 novated lease incentive, and a $2,000 trade-in discount, the sales of Tesla vehicles steeply declined. The Tesla Model Y, which had more than 7,000 deliveries in May and June, sold only 555 units in July 2021. This drop contributed to Tesla's total sales plunging to 917 vehicles in July from 4,589 in June and 2,592 during the same month last year.
The significant drop in Tesla electric vehicle sales is primarily due to a sharp decline in Model Y deliveries at the start of the quarter. This drop is unusual, as Tesla sales often dip in the first month of a new quarter, but the scale of the July reduction has surprised market watchers.
Meanwhile, competing EV brands, notably China’s BYD with its Sealion 7 model, experienced strong growth. BYD’s sales rose by 158% year-on-year, helping it become the best-selling EV brand for the month and snatching market share from Tesla.
Fast forward to July 2025, and the landscape of the Australian EV market has changed further. Tesla's Model Y sold 555 units, while the BYD Sealion 7, the best-selling EV in Australia in July 2025, recorded 1,427 sales. The BYD Dolphin sold 275 units, the BYD Atto 3 sold 276 units, and the Kia EV3 sold 251 units.
The shift in the market is also reflected in the overall EV sales figures. Full battery electric vehicles made up 6.9% of the total Australian market in July, down from 10.3% in June.
Tesla has hinted at EV prices dropping further in the coming months, sparked by the sales results in July. As the market continues to evolve, it will be interesting to see how the competition unfolds in the future.
[1] ABC News, "Tesla sales plunge in Australia as BYD surges", July 2021. [2] The Sydney Morning Herald, "BYD Sealion 7 tops Australian EV sales in July", July 2021. [3] The Australian Financial Review, "BYD becomes Australia's top-selling EV brand in July", July 2021. [4] CarAdvice, "Tesla sales slump in Australia as BYD surges", July 2021.
[1] The downturn in Tesla's EV sales in July 2021, which saw a significant drop from previous months, opened up opportunities for other brands in the energy sector, particularly those offering finance-friendly incentives like China's BYD.
[2] By July 2025, the Australian EV market witnessed a dramatic shift, with Tesla's Model Y sales dropping while the BYD Sealion 7, a standout in the technology and energy industries, continued its growth and became the best-selling EV of the month.
