Three years, three records. Once again, Australians have broken the annual car sales record. But this time, the pace feels different — less like a boom, more like a quiet push over the line. A record’s a record, sure, but behind the headline, the market seems to be shifting gear.
New-Car Sales Edge Past Previous High
In 2025, new-car sales in Australia reached 1,241,037 vehicles, according to official data from the Federal Chamber of Automotive Industries. That’s a new all-time high, nudging just 0.3% above the previous year’s total, reports Drive.
Many had predicted a downturn, given the combination of rising interest rates, stretched household budgets and a cooling post-COVID market. But December came in strong, with over 101,000 deliveries, lifting the annual figure just enough to set a fresh record. And since these figures reflect cars delivered — not just ordered — they offer a solid snapshot of actual buyer behaviour.
Familiar Names Still Lead, But With Softer Numbers
Australia’s top-selling vehicles in 2025 didn’t change, but their performance dipped. The Ford Ranger remained in first place, followed by the Toyota RAV4 and the Toyota HiLux. All three recorded declines compared to the year before. The Ranger fell nearly 10%, the RAV4 over 11%, and the HiLux slipped a little more than 4%. Still, their positions in the rankings held firm.
Toyota, despite these drops, remains dominant overall. With close to 240,000 cars sold, it retains its title as the country’s most popular brand — a position it has held for 24 years straight.
China Gaining Serious Ground
One of the most notable trends in 2025 was the rise of Chinese manufacturers. BYD saw its sales more than double, while GWM and Chery continued to gain traction. Chinese-made cars are no longer niche. They’re entering the mainstream, helped by sharp pricing and strong tech offerings.
China has now overtaken Thailand as the second-biggest source of new vehicles sold in Australia, behind Japan. That shift, quiet but steady, reflects changing attitudes among Australian buyers who are increasingly open to alternatives beyond the long-established brands.
EV and Hybrid Sales Climb, Slowly But Surely
Sales of electric and hybrid vehicles continued to rise. EV registrations increased by just over 13%, reaching 103,270 units. Plug-in hybrids more than doubled in volume, while conventional hybrids remained strong, just shy of 200,000 vehicles sold.
Tesla’s market share dropped slightly, but newer entrants — including BYD, Kia and Zeekr — filled the gap. Growth is stronger in major cities, while regional demand remains limited by a lack of charging infrastructure.
The Market Is Changing — Even If It Looks Stable
From a distance, the record might suggest a steady market. But underneath, preferences are clearly evolving. SUVs now dominate the landscape. Passenger sedans are becoming rare. Chinese and Korean brands are climbing the charts. And electrified vehicles, while still a minority, are no longer just a fringe option.
Australians are still buying new cars — in large numbers. But they’re buying differently. The 2025 record might not make headlines for long, but it hints at something bigger: a market quietly reshaping itself.
