Tesla Model Y tops 2026 Drive Car of the Year list

Tesla's Model Y has been named overall winner of the 2026 Drive Car of the Year awards. Judges cited recent updates and the availability of Full Self-Driving (Supervised) for Australian buyers in a vehicle priced under AUD $60,000.

Now in their 21st year, the annual awards assess new vehicles on sale in Australia across multiple categories. Drive said the overall honour goes to the vehicle that "moves the game forward the most for Australian new car buyers". The Model Y also won Best Electric Vehicle under $60k.

Drive highlighted Tesla's Full Self-Driving (Supervised) as a key factor, describing it as a meaningful step forward in driving technology for mainstream buyers. The citation also noted Tesla's practice of delivering over-the-air software updates after purchase.

Drive Director of Content James Ward said Australian demand has supported Tesla's local performance. "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," Ward said.

The judges also pointed to Tesla's charging footprint in Australia and the link between charging access and ease of ownership. The write-up positioned the Model Y as a practical family option at its price point, with an emphasis on digital features and the ownership model.

Ward said the judges viewed the Model Y as a benchmark for modern vehicles. "In terms of forward thinking, the Model Y simply elevates the benchmark of what car buyers can expect today and into the future," he said.

EV demand

Drive's consumer research suggests the market is still in transition, with around 60% of Australians saying they are not ready to consider buying an electric vehicle. It also found stronger interest among Generation Y-described as the largest generational group-with 54% open to buying an electric vehicle as their next car.

The research also pointed to a growing willingness to consider newer entrants. Drive said 40% of Generation Y respondents were open to buying from a new brand entering the Australian market, including Chinese brands offering new-energy vehicles.

Electrified vehicle sales have also shifted. Ward said the new-vehicle mix changed at the end of 2025. "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," he said.

Category spread

The 2026 list included 18 category winners plus two Lifetime Achievement awards. Drive said only two category winners did not offer an electric or hybrid option, and both were diesel four-wheel drives.

Ward also pointed to changing brand representation among award winners. "New brands are becoming more represented in the quality stakes too, with Zeekr earning its first trophy this year, and BYD winning two awards," he said.

The category winners ranged from urban cars to off-road SUVs and dual-cab utes. BYD won Best Urban Car under $30k with the Dolphin Essential and Best Electric Vehicle under $40k with the Atto 2. Zeekr's 7X RWD took Best Medium SUV under $60k, while the Polestar 4 won Best Electric Vehicle under $90k.

Hyundai collected multiple awards, including Best Small SUV under $60k for the Kona, Best Seven-Seat SUV under $60k for the Santa Fe, and Best Seven-Seat SUV under $90k for the Palisade. Genesis won Best Medium SUV under $90k with the GV70. Other category winners included the BMW 5 Series for Best Luxury Car under $150k, the Volvo XC90 for Best Luxury SUV under $150k, and the Ford Everest for Best Off-Road SUV under $90k.

Kia's Tasman won Best Dual-Cab Ute under $60k, while the Ford Ranger V6 took Best Dual-Cab Ute under $90k. The Honda Civic Hybrid won Best Urban Car under $60k, and the Mini Countryman took Best Small SUV under $90k.

Lifetime awards

Drive introduced two Lifetime Achievement awards for the first time. Ward said they recognise models that have won their categories over the past six years. "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," he said.

Drive Chief Executive Officer Simon Halfhide said the awards are intended as a guide for consumers facing more choice across brands and models.

"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," Halfhide said.

Halfhide said the editorial team tests vehicles throughout the year before selecting finalists and winners. "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," he said.