{"id":108269,"date":"2025-12-26T10:30:00","date_gmt":"2025-12-25T23:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=108269"},"modified":"2025-12-25T21:32:42","modified_gmt":"2025-12-25T10:32:42","slug":"australias-car-market-shifts","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/australias-car-market-shifts\/","title":{"rendered":"Australia\u2019s Car Market Shifts: Small Cars Are Dying, but SUVs Are Thriving"},"content":{"rendered":"\n<p>Small cars have long been a staple of Australian roads, offering practicality, affordability, and a compact size perfect for city driving. But something has shifted in the market. As of 2025, small car sales are in freefall, and it seems Australians just can\u2019t get enough of small SUVs. The writing\u2019s on the wall for the small car class\u2014so what\u2019s driving this change?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Decline of Small Cars<\/h2>\n\n\n\n<p>Let\u2019s start with the numbers. As of November 2025, sales of small cars under $40,000 have dropped by a dramatic 23.6% compared to the previous year, reports <a href=\"https:\/\/www.drive.com.au\/news\/small-car-sales-are-on-the-way-down-but-australians-love-small-suvs\/\" target=\"_blank\" rel=\"noopener\">Drive<\/a>. Meanwhile, the premium small car segment has also suffered, down 18.9%. Big-name models like the Toyota Corolla and Hyundai i30 saw noticeable declines\u2014Corolla sales were down 22.8%, and Hyundai\u2019s i30 dropped by 13.2%. And if that\u2019s not enough to make you raise an eyebrow, Kia switched from its Cerato model to the new K4, which has seen a staggering 47.5% sales decline compared to Cerato\u2019s 2024 figures.<\/p>\n\n\n\n<p>Interestingly, the only bright spot in the small car market has been the BYD Dolphin EV, which has surged by 58.2%. Despite this impressive growth, though, it\u2019s still far behind traditional favorites in sales, with only 2,983 units sold compared to over 10,000 for the Corolla.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Are Australians giving up on small cars? \ud83e\udd14<br><br>Sales are down sharply in 2025, even as fresh models hit showrooms.<br><br>\ud83d\udc49 See what\u2019s happening in the small car segment: <a href=\"https:\/\/t.co\/kNoqozkKKK\">https:\/\/t.co\/kNoqozkKKK<\/a> <a href=\"https:\/\/t.co\/SbSUWdjBWZ\">pic.twitter.com\/SbSUWdjBWZ<\/a><\/p>&mdash; Drive (@drivecomau) <a href=\"https:\/\/twitter.com\/drivecomau\/status\/2004024317302940153?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">December 25, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What\u2019s Driving the Shift to SUVs?<\/h2>\n\n\n\n<p>While small cars are in decline, the small SUV market is booming. Sales in this category have soared, with small SUVs under $45,000 surpassing 149,000 units sold by November 2025\u2014compared to just 97,229 in 2020. It\u2019s clear that Aussies are trading their small hatchbacks and sedans for the higher driving position, extra cargo space, and rugged appeal of small SUVs. These vehicles give the same compact footprint but with added versatility, making them an attractive choice for families and city dwellers alike.<\/p>\n\n\n\n<p>It\u2019s not just about size. The appeal of an elevated driving position seems to be a major factor in this shift. Many drivers are drawn to the sense of safety and visibility that comes with sitting higher off the ground, even if they\u2019re only in a small SUV. Plus, many of these vehicles now offer similar fuel efficiency and price points to traditional small cars, making them a no-brainer for many.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Premium Small Cars: A Slow Burn<\/h2>\n\n\n\n<p>In the premium small car segment, sales have been steadier, though not without their own challenges. While the overall market for small premium cars shrank, some brands, like Cupra and MG, have entered the fray, while others like Renault have exited entirely. Hyundai even announced that its regular i30 hatch would no longer be available in Australia, leaving only the sportier i30 N and i30 Sedan in the market. The Mazda 3, meanwhile, has held steady in sales with only a slight drop of 1.4% from last year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Future of Small Cars in Australia<\/h2>\n\n\n\n<p>So, what does the future hold for small cars in Australia? The numbers suggest that, for now at least, they\u2019re fading into the background. But let\u2019s be clear\u2014the decline of the small car doesn\u2019t mean the end of compact cars altogether. The popularity of small SUVs proves that there\u2019s still a love for compact-sized vehicles; it\u2019s just that the SUV format has won the day.<\/p>\n\n\n\n<p>As Australians continue to opt for taller, more versatile <a href=\"https:\/\/en.econostrum.info\/au\/australias-best-selling-cars-of-2025\/\" target=\"_blank\" rel=\"noopener\">cars<\/a>, it will be interesting to see if small car manufacturers can find a way to reinvent themselves. Perhaps in the future, there will be a blend of the best features from both worlds\u2014compact size and elevated ride height\u2014capturing the spirit of the small car while delivering the practicality and comfort of an SUV.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Small car sales are dropping in Australia, while the popularity of small SUVs is on the rise. What\u2019s behind this shift in buying habits?<\/p>\n","protected":false},"author":14,"featured_media":108270,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-108269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/108269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=108269"}],"version-history":[{"count":1,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/108269\/revisions"}],"predecessor-version":[{"id":108271,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/108269\/revisions\/108271"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/108270"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=108269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=108269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=108269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}