Sydney, February 2026 – For 21 years, Drive has comprehensively tested new cars on sale in search of the car that is deemed to push the automotive industry forward the most for Australian new car buyers. This year, the Tesla Model Y has taken out the prestigious honour.
The Tesla Model Y won praise from the Drive judging panel for the improvements and accessibility of its driving technology, including the introduction of Tesla’s Full Self-Driving (Supervised) technology. Often polarising – yet indisputably representing a real step forward for Australians into the future of driving, in a car with a RRP of under $60k.
James Ward, Drive Director of Content, said, “The Tesla Model Y is not only a globally successful car, but now a locally successful one. Australian new car buyers have endorsed it, with the Tesla Model Y Australia’s best-selling electric vehicle and a top 10 selling model overall in 2025.”
The overall Drive Car of the Year accolade is awarded to the vehicle that ‘moves the game forward the most for Australian new car buyers’, with Ward noting of the Tesla Model Y, “In terms of forward thinking, the Model Y simply elevates the benchmark of what car buyers can expect today and into the future.”
“The recent updates are significant. It is an incredibly well-equipped, practical and affordable family car, now with a 5-year warranty, and when combined with Australia’s most reliable EV charging network, makes electric vehicle ownership easier and more accessible than ever before.”
Thom Drew – Tesla Australia & New Zealand Country Director quoted “Tesla is incredibly proud to have Model Y named as the overall winner of the 2026 Drive Car of the Year. Over the past 15 years that Tesla has been in Australia, the automotive landscape has evolved dramatically with new entrants reshaping the market. We acknowledge the judges’ rigorous testing, which underscores why Model Y is not only Australia’s best-selling EV, but also the world’s best-selling car. Achieving the top score under ANCAP’s 5-star rating, Model Y sets a new benchmark for safe, family-friendly vehicles. This award empowers Aussie buyers with the confidence to embrace EVs, knowing they’re ready for a future of innovative, accessible, and reliable driving with low running costs. Thank you to Drive for this important recognition that benefits Tesla and Australian consumers alike.”
Overall, around 60% of Australians say they are still not ready to consider buying an electric vehicle, according to Drive’s latest consumer research. However, the now largest generational group, Generation Y, claim to be much more likely, with 54% open to buying an electric vehicle for their next car, and 40% open to buying from a new brand entrant to the Australian market, such as one of the many new Chinese brands with largely new-energy vehicles on offer.
Ward added, “at the end of 2025, sales of electrified new vehicles (hybrid, plug-in hybrid and full electric) surpassed the volume of pure petrol cars for the first time. Hybrid sales alone have grown 102% in the past two years, with buyers now understanding the week-to-week benefits of lower fuel consumption.”
“Of the 18 category winners in the 2026 awards, only two cars aren’t available with an electric or hybrid power option, with both of these being diesel four-wheel drives.”
“New brands are becoming more represented in the quality stakes too, with Zeekr earning its first trophy this year, and BYD winning two awards,” said Ward.
The Drive Car of the Year awards program is the most comprehensive new car awards program in Australia, designed each year to reflect current buyer needs, budgets and the changing face of the industry, with Australia now home to over 70 automotive brands, up from just 50, five years ago.
Drive Chief Executive Officer Simon Halfhide said: “Our Drive Car of the Year program continues to grow in value to Australian drivers each year. With many consumers finding the expansive choice of brands and cars overwhelming, the awards provide a trusted and valuable shortlist, with authoritative and firsthand advice to help kick start their research journey.”
“The Drive team are proud to be the custodians of this iconic awards program and spend all year preparing and applying careful consideration to the testing of each year’s finalists, and ultimately the category winners,” concluded Halfhide.
James Ward added “For the first time in the history of the Drive Car of the Year awards, we are awarding two Lifetime Achievement awards. There are two cars that have won awards in their respective categories consecutively over the last 6 years and frankly remain uncontested. This honour goes to the Defender 110 and the Kia Carnival, which continue to provide unique and different value to buyers.”
After winning the overall award in 2025, Hyundai continues to perform strongly and was the most successful individual brand in the 2026 category awards. With two SUVs receiving back-to-back awards, the new Palisade winning the Best Seven-Seat SUV under $90k award, and their luxury sub-brand, Genesis, seeing the GV70 taking out an award for the second year.
All the detail behind this years winners and finalists will be published on Drive.com.au on Monday 23rd February 2026.
