The Tesla Model Y has been crowned 2026 Drive Car of the Year, winning praise from the judging panel for the improvements and accessibility of its driving technology.
Each year, Drive comprehensively tests new cars on sale in search of the models that are deemed to push the automotive industry forward the most for Australian new car buyers.
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Drive director of content James Ward 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.
“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 five-year warranty, and when combined with Australia’s most reliable EV charging network, makes electric vehicle ownership easier and more accessible than ever before.”
According to Drive’s latest consumer research, approximately 60% of Australians say they are still not ready to consider buying an electric vehicle. 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 said, “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.”
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2026 Drive Car of the Year Category winners
Overall Winner Tesla Model Y
Best Urban Car under $30k BYD Dolphin Essential
Best Urban Car under $60k Honda Civic Hybrid
Best Luxury Car under $150k BMW 5 Series
Best Small SUV under $60k Hyundai Kona
Best Small SUV under $90k Mini Countryman
Best Medium SUV under $60k Zeekr 7X RWD
Best Medium SUV under $90k Genesis GV70
Best Seven-Seat SUV under $60k Hyundai Santa Fe
Best Seven-Seat SUV under $90k Hyundai Palisade
Best Luxury SUV under $150k Volvo XC90
Best Off-Road SUV under $90k Ford Everest
Best Dual-Cab Ute under $60k Kia Tasman
Best Dual-Cab Ute under $90k Ford Ranger V6
Best Electric Vehicle under $40k BYD Atto 2
Best Electric Vehicle under $60k Tesla Model Y
Best Electric Vehicle under $90k Polestar 4
Lifetime Achievement Award—Best Luxury Off-Road SUV Under $150k Defender 110
Lifetime Achievement Award—Best Family Car Under $80k Kia Carnival
