Australian Vehicles Market in 2025 is still stagnating. YTD sales up to October gained 0.8% with Great Wall and BYD clearly outpacing other leading brands. The two chinese carmakers also carried EV growth, which amounted to 8.7%.
Economic Environment
Australia’s 2025 forecasts point to a cautiously improving outlook, with GDP growth rebounding and the RBA expected to deliver one final rate cut in early 2026. Consumer spending and house prices are rising, yet households remain wary and continue to save, highlighting uneven momentum beneath the surface. Employment growth is slowing and inflation has proven sticky, creating tension for monetary policy and complicating the timing of further easing. Globally, prospects have improved as US rate and tax cuts filter through, but risks remain elevated, especially with renewed US-China frictions over tariffs and rare earth restrictions. The US economy is absorbing tariffs with limited inflation impact, though trade-exposed sectors face job pressures, while China relies on fiscal support amid slower growth. Europe continues to expand modestly, constrained by new trade barriers and slow progress on investment commitments.
Commodity markets reflect the global uncertainty, with gold surging as the dominant safe-haven and iron ore holding above $100/t despite soft Chinese steel demand. The sustainability agenda is accelerating, with Australia targeting a 62–70% emissions cut by 2035, requiring rapid expansion of renewable energy and electrification. Currency markets remain sensitive to shifting risk sentiment, with expectations of a weaker USD supporting the AUD in the near term before a possible reversal in 2026. Bond markets have stabilised, yet concerns over global inflation and rising government debt are likely to keep yields from falling significantly further and maintain market sensitivity to policy shifts.
Automotive Industry Trend and Outlook
The Australian Vehicle Market continues to struggle in 2025. YTD sales up to October grew 0.8% to 1,01 million units, continuing on the negative trend of H1.
Due to ongoing cost-of-living pressures, private demand is slowing down, failing to keep up with increasing supply as foreign brands are increasingly expanding their share of the country’s market, driving up competition.
Brand-wise, the leader was still Toyota with a 19.9% share (-0.3%), followed by Ford in 2nd with 7.8% (-5.6%), while Mazda ranked 3rd with 7.6% (-4.6%).
In 4th place Kia (+0.6%), followed by Hyundai -up 1 spot- in 5th (+6.3%) and Mitsubishi -down 1 spot- in 6th (+16.3%).
In 7th place Great Wall climbed 3 spots (+24.6%) ahead of BYD -up 9 spots- in 8th (+147.6%), MG -down 2 spots- in 9th (-12.6%) and Isuzu -down 2 spots- in 10th (-14.7%).
Looking at the top selling models, widely reported in the dedicated article, the leader was the Ford Ranger (-12.6%) followed by the Toyota Hilux (-2.8%) and the Toyota RAV4 (-17.8%).
EV Market Trend and Outlook
Defying the broader contraction, EV uptake is accelerating in 2025, with YTD figures growing 8.7% up to October 2025. Reaching an 8% share of the total, federal emissions targets are driving demand, even though recent state cuts to EV rebates may be slowing some momentum.
BYD became the new leader, growing 59.3% and securing a 35.1% share of the market. Tesla dropped into 2nd, losing 16.7% while Kia, with major gains of 114.1%, ranked 3rd and grew 4 spots.
Medium-Term Market Trend
Over the past decade, the Australian vehicle market experienced notable fluctuations. Starting with 1 million registrations in 2014, the market grew about 6.9% between 2014 and 2017 when it totaled 1.16 million sales. This growth was driven by a strong preference for SUVs, which reached a market share high around 2016.
Starting from 2018, momentum slowed down, with sales dipping to 1.153 million units. The onset of the COVID-19 pandemic in 2020 caused further downturn, with sales dropping by 13.8% to 890,000 registrations. Factors such as temporary closure of manufacturing plants and disruptions in distribution networks exacerbated the crisis.
The market began to recovery in 2021, surpassing the 1 million sales mark with a year-on-year growth of 15.1%. This rebound was fueled by pent-up demand and government incentives aimed at stimulating the economy. The upward trend continued, culminating in decade-high figure of 1.19 million units in 2024, with a 1.9% increase from the previous year.
The Australian EV sector has undergone significant growth. From 2014 to 2018, EV sales increased by 123%, reflecting growing consumer interest in more sustainable options. The pandemic-induced contraction in 2020 saw a 93% year-on-year growth reduction. Nevertheless, the EV market rebounded impressively in 2023, with sales more than doubling, driven by improved charging infrastructure, a broader range of affordable models, and continued government support. In 2024, EV sales stabilized around the 77k threshold, with a 2% growth from the previous year. This stability underscores the increasing consumer acceptance and demand for electric vehicles in Australia.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Groups, and top 10 Models.
