The continued growth of SUVs is taking its toll on what was once Australia’s best-selling electric car of any type, the Tesla Model 3 sedan.
A slump in Tesla Model 3 electric-car deliveries has handed the title of Australia’s top-selling sedan back to the Toyota Camry hybrid after three years on top.
And the US car giant has not expressed confidence the Model 3 will return to its former sales glory, amid declining interest in traditional sedans in favour of similarly-priced SUVs.
Data published by the Electric Vehicle Council (EVC) reports 4077 Tesla Model 3 sedans as sold in the first seven months of 2025, a slump of 65.6 per cent compared to the prior year – and down 70.8 per cent in July alone.
It has allowed the Toyota Camry to return to the top of the sales charts, though it is also down 55.9 per cent year-on-year, from 12,286 to 5415 vehicles.
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The sales slide is despite a substantial update for the Model 3 at the start of 2024, adding refreshed styling, an upgraded interior and a quieter and more comfortable drive, followed by price cuts in mid-2024.
The updated model created a surge in demand, heightened by a stop-delivery notice due to a breach of motor-vehicle regulations uncovered by Drive, which compressed the initial wave of hand-overs into a handful of months.
Tesla reported 3593 Model 3 sales in February 2024, once deliveries resumed, followed by 1638 in March, 911 in April, and 1958 in May.
It is a vast departure from the 362 deliveries reported for the vehicle last month, although it remains ahead of its BYD Seal electric rival, which reported 273 sales in July for a total of 1882 so far this year, also down 59.6 per cent.
“The old [model] switched out last year,” Tesla Australia country director Thom Drew told Drive.
“If we’re looking at year-on-year results, not to use the excuse, but we had a really strong start with deliveries of those [new] vehicles, partially impacted by some issues that we ran into last year.
“There was a homologation concern that delayed deliveries, [such] that we had really big months, bigger than we should have, in that sense – it was contracted.
“So that is having a larger impact on the current results year-on-year. That being said though, demand in that segment, particularly for premium mid-size sedans, has continued to wane.”
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Asked if he feels buyers once considering sedans such as the Model 3 are now in SUVs, he said: “I can’t 100 per cent confirm that, but that appears to be the case.
“Personally, as a Model 3 driver, I wish more people would always try and give people the opportunity to drive the sedans, if you don’t really need the space for an SUV, because it is a brilliant product.
“And I do think, you know, sedans do always have that, if you’re a more a spirited driver, a sedan’s always going to give you that lower to the ground, a better driving experience – not to take anything away from [the] new Model Y.
“I think the preference of the market has really gone to a car that fits all their needs, right? And if you’re only buying one car, and you’re a young family and everything, you want to have that vehicle, and that tends to be an SUV.”
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