Australia’s new vehicle market saw a notable slowdown in April 2025, with 90,614 new cars sold — a 6.8% drop compared to April 2024. The decline is significant in a fleet context, particularly as major economic and policy shifts continue to reshape vehicle acquisition strategies.
For fleet managers, the key headline is the sudden dip in plug-in hybrid electric vehicle (PHEV) sales following the removal of the Fringe Benefits Tax (FBT) exemption at the end of March. PHEV sales slumped to just 2.9% of the market in April, down from 4.7% year-to-date prior to the policy change. According to FCAI Chief Executive Tony Weber, “Removing that support has led to an immediate and disappointing drop in demand in a price-sensitive vehicle market.”
Meanwhile, battery electric vehicles (BEVs) accounted for 5.9% of the market, indicating steady — but still modest — progress as the New Vehicle Efficiency Standard (NVES) looms. As Weber noted, “For NVES to succeed, it must be supported by holistic policy settings that assist consumers to move to zero and low-emission technologies.”
Despite these broader market challenges, several models remain dominant in fleet and commercial circles. Here’s a snapshot of the top five selling vehicles in April 2025 and what they mean for fleet buyers:
1. Toyota HiLux — 4,121 sales
The HiLux continues its reign as Australia’s best-selling vehicle. Despite a 12.2% year-on-year drop, it remains a staple of government, construction, and utility fleets. With the recent addition of mild hybrid 48V variants, the HiLux offers a practical bridge between traditional diesel reliability and lower-emissions technology — a key selling point for fleets navigating the NVES transition.
2. Ford Ranger — 4,031 sales
Down 27.6% compared to April last year, the Ranger still holds strong appeal in mining, regional councils, and service fleets. The new-generation Ranger, with its strong tech suite and wide powertrain choices, remains highly configurable, helping fleets tailor vehicles to task-specific roles.
3. Toyota RAV4 — 3,808 sales
Although down 35% year-on-year, the RAV4’s hybrid variants continue to perform well in salary packaging and novated lease programs. The combination of fuel efficiency, low servicing costs, and availability of a full hybrid drivetrain make it one of the more sustainable choices for passenger fleets.
4. Ford Everest — 2,234 sales
The Everest has cemented its place in remote-area operations and field services. Its 4×4 capabilities, advanced safety features, and spacious cabin make it a solid option for fleets with mixed terrain or towing needs. It recorded a smaller decline (6.9%) than other top sellers, showing stable fleet interest.
5. Toyota Prado — 2,233 sales
Surging by a staggering 1,198% compared to April 2024 — thanks to a model changeover — the Prado’s performance was driven by pent-up demand for the new generation. Popular among local councils, utilities, and government departments operating in rural and regional areas, the Prado blends comfort with rugged capability.
Other Trends Worth Noting
- SUVs held steady, with sales virtually flat compared to April 2024 (+0.1%), showing continued demand from both personal and business buyers seeking versatility.
- Passenger vehicles dropped 27.4%, reflecting the longer-term market shift away from sedans and hatches — although compact passenger models still play a role in urban fleet applications.
- Heavy commercial vehicle sales dropped 20.8%, which may reflect delays in capital expenditure approvals or broader caution around infrastructure and logistics investment.
- State-by-state, all markets recorded declines, with Tasmania (-18.5%), ACT (-17%) and South Australia (-13.6%) showing the sharpest contractions.
What This Means for Fleet Managers
The April 2025 data reinforces the need for careful strategic planning in fleet procurement. With policy shifts like the end of PHEV tax exemptions and the introduction of NVES, fleet buyers must now weigh lifecycle emissions performance, tax treatments, and infrastructure availability when evaluating vehicle options.
Additionally, the Toyota-dominated top five underlines the continued strength of traditional fleet brands — but rising interest in BEVs and the sharp policy-linked drop in PHEVs shows how fast the market can pivot. Maintaining strong relationships with OEMs and leasing providers will be essential as supply chains and model availability continue to shift in response to demand and regulatory pressure.
For fleets focused on sustainability and cost certainty, 2025 is proving to be a year where flexibility, policy literacy, and futureproofing are more important than ever.
