Australia’s new car market has recorded its best-ever July, with 103,097 vehicles delivered, according to the latest VFACTS data released by the Federal Chamber of Automotive Industries (FCAI). The result reflects a 3.6% increase over July 2024 and reinforces a positive outlook from both consumers and business buyers despite broader economic uncertainty.
FCAI Chief Executive Tony Weber attributed the strong result to “ongoing buyer confidence” underpinned by interest rate reductions and expectations of further easing.
“We are now seeing confidence return to the market, supported by a recent interest rate reduction and anticipation of further easing,” Mr Weber said. “Consumers are responding with interest across most segments, particularly utes and SUVs.”
Fleet Impact: PHEV Gains and EV Plateau
From a fleet perspective, the key takeaway in July 2025 is the continued growth of plug-in hybrid electric vehicles (PHEVs), up an astonishing 183% year to date. With more than 50 models now available, PHEVs are gaining traction as a transitional powertrain.
“Plug-in hybrids have emerged as an important transition technology for many Australians, particularly those in regional areas or those with limited access to charging,” said Mr Weber. “They offer the ability to drive short distances on electric power while retaining the flexibility and range of a conventional engine.”
While EV choice is broader than ever, electric vehicle uptake appears to have stalled. Battery electric vehicles remain below 8% of new vehicle sales in 2025—a sign that challenges around charging infrastructure, pricing, and availability continue to limit their appeal to mainstream fleet operators.
Top Brands: Toyota Extends Its Lead
Toyota remains the dominant player with 21,722 vehicles delivered in July, capturing 21.1% market share. Mazda and Kia followed with 7,452 and 7,402 sales respectively, while Ford and Hyundai rounded out the top five.
Despite its ongoing leadership, Toyota’s overall YTD sales are tracking slightly below the same point in 2024, falling from 144,006 to 142,700.
Top 10 Brands – July 2025 (monthly sales):
- Toyota – 21,722
- Mazda – 7,452
- Kia – 7,402
- Ford – 7,279
- Hyundai – 6,687
- Mitsubishi – 4,983
- GWM – 4,721
- BYD – 4,607
- Isuzu Ute – 3,986
- MG – 3,008
BYD’s rapid growth continues, with July sales up significantly compared to the same time last year, further consolidating its presence in the fleet and novated lease markets.
Market Trends: SUVs Rule, Sedans Decline
SUVs now account for the majority of new vehicle sales, continuing a trend that has redefined vehicle fleets across Australia. In 2025, SUV sales outnumber passenger cars by a ratio of nine to two.
“In July, there was only one sedan in the top 20 models, the Toyota Corolla,” Mr Weber noted. “Passenger sales are down 27% year to date.”
This shift has implications for fleet procurement strategies, particularly for sectors historically reliant on sedan-based offerings for executive and sales roles.
Top 10 Models – July 2025:
| Rank | Model | Sales | YoY Change |
|---|---|---|---|
| 1 | Toyota HiLux | 4,676 | -1.5% |
| 2 | Toyota RAV4 | 4,415 | -25.6% |
| 3 | Ford Ranger | 3,930 | -20.0% |
| 4 | Ford Everest | 2,425 | +12.2% |
| 5 | Isuzu D-MAX | 2,351 | -0.8% |
| 6 | Toyota Prado | 2,339 | +11,038%* |
| 7 | Toyota LandCruiser | 2,322 | -5.8% |
| 8 | Chery Tiggo 4 Pro | 2,065 | N/A |
| 9 | Toyota Corolla | 1,963 | -27.0% |
| 10 | Hyundai Tucson | 1,914 | +18.0% |
The fall in RAV4 sales, down 25.6%, may reflect limited supply of hybrid models, which are key to both fleet buyers and private customers seeking low-emission vehicles. This dip contrasts with the rapid growth in Prado deliveries, a vehicle that has been out of circulation due to the model changeover and is now being prioritised for delivery.
Sales by Vehicle Type – July 2025:
| Segment | Sales | % YoY Change |
|---|---|---|
| SUV | 63,079 | +11.5% |
| Light Commercial | 22,437 | +3.3% |
| Passenger | 13,946 | -19.3% |
| Heavy Commercial | 3,635 | -6.6% |
For fleet buyers, this breakdown reinforces the shift towards SUVs and utes as default choices across multiple sectors, with passenger sedans increasingly relegated to niche roles or novated leasing arrangements.
Summary: Positive Signs with Strategic Implications
The strong July result signals a healthy vehicle market entering the second half of 2025, buoyed by buyer confidence and stable supply. For fleet operators, the data highlights:
- The rising role of PHEVs as a practical solution while EV uptake remains flat.
- The SUV dominance across all buyer types, influencing future procurement.
- The ongoing relevance of Toyota as a fleet leader, even as competitors like BYD and Chery gain momentum.
As the New Vehicle Efficiency Standard (NVES) looms, the second half of 2025 will be critical in shaping fleet buying strategies—particularly for organisations balancing operational needs with emissions targets.
| Buyer Type | YTD Sales | % of Total Sales |
|---|---|---|
| Private | 360,885 | 50.7% |
| Fleet Buyers | 351,023 | 49.3% |
| Total Market | 711,908 | 100% |
