The Tesla Model Y has been named the overall winner of the 2026 Drive Car of the Year.
Now in its 21st year, the Drive Car of the Year award recognises the vehicle that “moves the game forward the most for Australian new car buyers.”
In 2026, judges awarded that honour to Tesla’s mid-size SUV, citing its technological advancements, value proposition and growing local appeal.
Driving the EV shift forward
The Model Y was praised for improvements to its driving technology, including the introduction of Tesla’s Full Self-Driving (Supervised) capability, as well as its affordability at under $60,000.
James Ward, Drive Director of Content, said the win reflects both global and local momentum behind the vehicle.
“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.
He added that the recent updates to the vehicle elevate expectations of what buyers can expect from a modern family car, pointing to its five-year warranty and access to Tesla’s charging network as key enablers of EV adoption.
Thom Drew, Tesla Australia & New Zealand Country Director, said the award reinforces the brand’s long-term presence in Australia and the market’s evolution over the past 15 years.
He highlighted the Model Y’s ANCAP five-star safety rating and its position as both Australia’s best-selling EV and the world’s best-selling car.
Image: Drive.com.au
Gaining EV confidence
The award comes as consumer sentiment toward electrified vehicles continues to shift. While Drive’s latest research shows around 60% of Australians are not yet ready to consider an EV, younger buyers are more open, with 54% of Generation Y respondents saying they would consider an electric vehicle for their next purchase.
Ward noted that by the end of 2025, sales of electrified vehicles — including hybrid, plug-in hybrid and fully electric — surpassed sales of pure petrol cars for the first time.
Hybrid sales alone have grown 102% over the past two years.
Of the 18 category winners in the 2026 awards, only two vehicles were not available with an electric or hybrid option, both diesel four-wheel drives.
The awards also reflected the growing influence of new entrants, with Zeekr earning its first trophy and BYD securing two category wins – Best Urban Car under $30k and Best Electric Vehicle under $40k
Drive CEO Simon Halfhide. Image: Drive
A growing and competitive market
Drive CEO Simon Halfhide said the awards aim to provide clarity in an increasingly crowded automotive landscape, with more than 70 brands now operating in Australia up from 50 just five years ago.
“Our Drive Car of the Year program continues to grow in value to Australian drivers each year,” Halfhide said, noting the program offers a trusted shortlist to help buyers navigate expanding choice.
For the first time, the 2026 awards also included two Lifetime Achievement awards, recognising the Defender 110 and the Kia Carnival for consecutive category wins over six years.
Hyundai was the most successful individual brand in the 2026 category awards, with the Palisade and Kona earning wins, while Genesis’ GV70 claimed back-to-back honours.
Full details of winners and finalists are available on Drive.com.au.
All 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
Top Image: Tesla Model Y via Drive.