Almost one in four new vehicles sold during August was fully electric, according to figures released by the Federal Chamber of Automotive Industries and the Electric Vehicle Council on Thursday.
Combined with hybrids and plug-in hybrids, electrified vehicles represented more than half of all new cars sold during the month, while sales of petrol and diesel cars dropped significantly.
The figures follow a string of sales records for electric vehicles set since March amid conflict in the Middle East, which has led to a surge in fuel prices.
Drivers bought more than 27,000 battery-powered electric vehicles during August, the data revealed, representing a rise of 171 per cent compared to the same month in 2025.
By comparison, Australians purchased more than 25,800 petrol vehicles during the month - a fall of 32.6 per cent on a year earlier.
Consumers were driving major changes in Australia's automotive market as more switched to electric cars, chamber chief executive Tony Weber said.
''The sustained level of (battery electric vehicle) sales, together with changing brand preferences, shows how quickly consumer choice and competition are reshaping Australia's new vehicle market,'' he said.
''These changes continue to reinforce the need for infrastructure settings that keep pace with the market.''
Electric cars represented almost 25 per cent of new vehicles sold in August, while hybrid cars made up 17.1 per cent and plug-in hybrid cars accounted for 9.7 per cent.
Tesla's electric Model Y topped the list of best-selling vehicles, recording more than 6400 sales during August and outperforming Toyota's RAV4 and HiLux ute.
Four electric cars ranked among the 10 top models sold during August, although Toyota remained the most popular automotive brand, followed by BYD and Tesla.
Chinese brands also rose up the sales charts, with BYD, GWM, MG and Geely together claiming 20 per cent of the market.
The growing popularity of electrified cars demonstrated a structural shift in the industry, with more drivers seeking to reduce their transport costs, Electric Vehicle Council chief executive Julie Delvecchio said.
''Environmental and economic considerations are coming together, changing what Australians buy and how they spend,'' she said.
''EVs are not only close to or at price parity with petrol cars, but Australians are also increasingly looking beyond the purchase price to what a vehicle will cost them over the years they own it.''
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