It’s official — Australia’s love affair with the traditional car is running out of road. Sedans and hatchbacks, once the kings of the driveway, are rapidly fading from view. In their place? A sea of SUVs and utes that now rule the country’s roads.
A Historic Low for Passenger Cars
New figures from the Federal Chamber of Automotive Industries (FCAI) reveal that passenger car sales dropped to their lowest level on record in 2025. Out of more than 1.25 million new vehicles sold nationwide, only about 13% were passenger cars — the smallest market share ever recorded.
That figure looks even starker when compared to ten years ago, when sedans and small cars accounted for nearly half of all vehicle sales in Australia. In just a decade, the traditional car has gone from dominant to nearly disappearing.
By contrast, SUVs and light commercial vehicles now make up over 80% of new sales, continuing a trend that shows no sign of slowing down. The Toyota HiLux and Ford Ranger were once again top sellers, followed closely by family SUVs like the RAV4 and Mazda CX-5.
The Shift to SUVs and Utes
The move away from passenger cars isn’t just about style — it’s about lifestyle. Australians are opting for vehicles that feel more versatile, whether that means handling weekend camping trips, towing trailers, or fitting a growing family’s gear. There’s also the perceived safety factor: many drivers say they feel more confident behind the wheel of a taller, heavier car, reports Drive.
Manufacturers have noticed the shift too. Most brands are now prioritising SUV development, often at the expense of their smaller models. Affordable sedans like the Hyundai i30 or Toyota Corolla are becoming harder to find in showrooms as automakers redirect resources toward larger, more profitable vehicles.
The End of the Sedan Era?
While SUVs dominate, passenger cars still hold a small but loyal following. City drivers, rideshare operators, and fleet buyers continue to rely on them for fuel efficiency and lower running costs. But with limited new models coming through, those options are shrinking fast.
Even the rise of electric vehicles (EVs) hasn’t reversed the trend — if anything, it’s reinforced it. Most new EVs hitting the Australian market are SUVs, reflecting where both manufacturers and consumers see the future.
What It Says About Australian Drivers
This shift says as much about Australian culture as it does about the auto market. Bigger cars fit the national image — practical, adventurous, and ready for the long haul. But they also reflect changing economics. Families are buying fewer cars overall, choosing one larger vehicle instead of maintaining two smaller ones.
Whether this is the end of the sedan as we know it is still unclear. But if the numbers are anything to go by, the traditional passenger car isn’t just slowing down — it’s being overtaken completely.
