A quarterly update from the Australian Automobile Association reveals new hybrid sales increased by 33 per cent in the three months to June 30.
According to the association's EV index, hybrid vehicles are also claiming market share from both petrol and battery-electric vehicles with hybrids' share rising from 12 per cent to 15 per cent over the same period.
Light petrol cars (those with internal combustion engines) recorded a market share fall from 78 per cent to 75 per cent.
Battery-electric vehicle sales and market share also fell during the period, with sales declining by 0.78 per cent.
Sales figures over the past six quarters show a clear trend towards hybrids and battery-electric vehicles while the market share of cars with internal combustion engines is "gradually shrinking", according to the association.
However, it acknowledged there have been significant quarterly fluctuations.
The Electric Vehicles Council's head of legal, policy and advocacy, Aman Gaur, said there was a clear shift away from traditionally powered cars.Â
"What we see is, overall, a strong decline in petrol cars and an increase and greater appetite for Australians to buy both battery-electric and pure electric cars," he told AAP.
Mr Gaur said looking at broader trends rather than just monthly and quarterly figures is important as the latter can be susceptible to the "seasonal nature" of the economy.
"The cost of living is biting across all discretionary sources of spending," he said.
"The actual seasonal factors of the economy changing shouldn't take our eyes off the broader trend here, which is that Australians are taking up electric vehicles - both plug-in hybrids and pure EVs - in greater numbers than they have ever before."
On Thursday it was revealed electric vehicle prices had fallen below $35,000 for the first time in Australia.
MG unveiled a series of cost cuts on its electric vehicles including the MG ZS EV, making it the cheapest in the country at $34,990.
Mr Gaur said the price drop is great for the move to electric cars which are cheaper to run and crucial to hitting net-zero targets.
"A cheaper electric car, whether it's plug-in hybrid or electric, means that not only is it cheaper to run, but it's cheaper to buy new, and then to get second-hand," he said.
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