Australia's new vehicle market sold 1,209,808 units in 2025, highlighting the sector’s resilience amid evolving consumer preferences.
December 2025 closed the year on a strong note, with 98,744 vehicles sold, a 3% increase on December 2024.
Plug-in hybrid vehicles recorded the fastest growth, more than doubling to 53,484 units, up 130.9% on 2024, while conventional hybrids also gained momentum, rising 15.3% to 199,133 units.
Battery electric vehicles accounted for 103,269 sales, or 8.3% of the market, though growth has been slower than expected.
"Many consumers are choosing hybrids and plug-in hybrids as a practical transition toward lower emissions. Uptake of BEVs depends on consumer readiness and charging infrastructure," FCAI CEO Tony Weber said.
The industry is also adapting to the New Vehicle Efficiency Standard, introduced last year, which has increased EV availability but is expected to present tighter limits in the coming years.
Policy incentives, including fringe benefits tax concessions, are under review, with international experience showing EV uptake is closely linked to incentives.
China emerged as a major vehicle source, supplying 18% of sales, behind Japan and Thailand. SUVs dominated buyer preferences, making up 60.7% of sales, while passenger cars fell 22.6%.
Toyota led the market with 239,863 units, followed by Ford, Mazda, Kia, and Hyundai. Top-selling models included the Ford Ranger, Toyota RAV4, and Toyota HiLux, underscoring the continued dominance of SUVs and utes.