Australian Vehicles Market in 2025 continues to stagnate. Full year sales only grew 0.7%, however Great Wall and BYD defied the trend and posted major gains, climbing up the rankings. BYD also overtook Tesla and became leader of an EV sector which, despite lagging behind global trends, defied major contraction and grew 4.8%.
Economic Environment
Australia’s economic outlook is improving, with GDP growth projected to rise from 1.8% in 2025 to 2.3% in both 2026 and 2027, driven increasingly by private-sector activity and a gradual closing of the negative output gap. Unemployment is expected to remain low while inflation stays close to target, allowing monetary policy to ease only modestly despite a recent inflation uptick. Fiscal policy is set to tighten slightly in 2026–27, shifting the policy mix toward balance while prioritising a gradual reduction in structural deficits through spending restraint and targeted revenue measures.
Australia’s recovery is being driven by a rebound in household incomes, with year-on-year GDP growth improving from a low of 0.8% in Q3 2024 to 1.8% by Q2 2025, largely supported by private consumption. While business investment has remained weak amid external uncertainty and trade tensions, falling interest rates and improving confidence are expected to further support private demand. Externally, sluggish demand for key commodities has kept exports flat and the current account deficit near 2% of GDP, although a sustained rise in gold prices could improve the terms of trade. On the policy side, the OECD expects two additional rate cuts over the coming year and projects the general government deficit to peak at around 3.5% of GDP in 2025 before narrowing to roughly 2.5% by 2027.
Automotive Industry Trend and Outlook
The Australian Vehicle Market continues to struggle in 2025. The YTD tally remained close to or below zero throughout the whole year, resulting in full-year sales of 1,207 million units, up only by 0.7%.
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 (-0.6%), followed by Ford in 2nd with 7.8% (-5.8%), while Mazda ranked 3rd with 7.6% (-4.2%).
In 4th place Kia (+0.4%), followed by Hyundai -up 1 spot- in 5th (+7.7%) and Mitsubishi -down 1 spot- in 6th (-17.9%).
In 7th place Great Wall climbed 3 spots (+23.4%) ahead of BYD -up 9 spots- in 8th (+156.2%), Isuzu -down 1 spot- in 9th (-12.1%) and MG -down 3 spots- in 10th (-18.5%).
Looking at the top selling models, widely reported in the dedicated article, the leader was the Ford Ranger (-9.9%) followed by the Toyota RAV4 (-11.5%) and the Toyota RAV4 (-4.1%).
EV Market Trend and Outlook
Defying the broader contraction, EV uptake is accelerating in 2025, with full year sales growing 4.8%. Reaching an 8% share of the total, demand is still driven by federal government policies and fuel efficiency standards. Still, the Electric Vehicle Council has called on state and territory governments to restore EV subsidies, as they are needed to support sales growth in line with Australia’s emissions reduction targets
BYD became the new leader, growing 62.3% and securing a 37.1% share of the market. Tesla dropped into 2nd, losing 24.8% while Kia, with major gains of 85.7%, ranked 3rd and grew 1 spot.
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.
