Australia’s automotive market saw a strong performance in 2024, with new vehicle sales surpassing one million units by October. In October alone, 98,375 vehicles were sold, marking a 7.9% drop compared to the same period last year but achieving the second-highest October sales record. This brings the total for the year to 1,025,621 units. However, despite the solid numbers, the pace of growth has slowed, with the final quarter of 2024 showing a clear decline in momentum.
Tony Weber, CEO of the Federal Chamber of Automotive Industries (FCAI), highlighted ongoing economic pressures impacting private buyers, who recorded a significant 14.2% drop in October following a 17.2% decrease in September. Weber expressed concern that economic challenges are weighing heavily on Australian households, influencing their vehicle purchasing decisions.
Fleet sales continue to rebound with sales to Business buyers up 6.6% YTD, and sales to Government buyers up a massive 21.3%.
The electric vehicle (EV) market remains a mixed story. While EV adoption is expanding in some segments, especially medium passenger cars where nearly 50% of sales are electric, the overall EV market share remains low. Tax incentives like the Fringe Benefits Tax (FBT) concession have bolstered some sales, but EV uptake has yet to see a substantial boost across broader categories.
Interestingly, the industry is witnessing growth in plug-in hybrid vehicle (PHEV) options, particularly in the SUV and light commercial segments, which traditionally leaned heavily on petrol and diesel engines. This trend is significant given the high demand for SUVs and light commercial vehicles in Australia. With more options becoming available, competition is heating up across different vehicle types and fuel sources, increasing consumer choice. However, it remains to be seen if these offerings will translate to a year-end sales surge.
Toyota led the market in October with 18,471 sales, maintaining a dominant lead over Ford, which sold 8,581 units, and Mazda with 7,656.
The Toyota RAV4 was the top-selling model with 4,841 units sold, followed closely by the Ford Ranger and Toyota HiLux, despite both models showing year-on-year declines. Notably, the Ford Everest and Kia Sportage saw impressive growth rates of 48% and 39.7%, respectively, compared to October 2023.
Sales trends across Australia’s states and territories revealed varying performances. New South Wales experienced a 12.1% decline in sales, while Victoria and the Australian Capital Territory saw even sharper drops of 14.4% and 16.4%, respectively. On the other hand, the Northern Territory and Western Australia bucked the trend, recording increases of 15.3% and 13.5%.
Overall, while 2024 has seen steady new vehicle sales, signs of cooling are evident, particularly in private buyer segments. With year-end sales looming, manufacturers and dealers are hoping that the diverse range of vehicles—particularly the newer hybrid and EV models—can draw in consumers despite ongoing economic pressures. The continued competition across brands and vehicle types underscores the dynamism of Australia’s automotive market, with the landscape set to evolve as more choices in alternative fuel options become available.
