Australia’s new car sales landscape in 2024 has shown signs of both growth and challenges. While the market experienced notable milestones, the numbers have also reflected the ongoing impact of economic pressures. By September 2024, new vehicle sales surpassed 900,000 for the first time by the end of the third quarter, reaching a total of 927,246 units sold. However, the monthly sales for September revealed a year-on-year decrease of 12.4%, with a total of 97,020 units sold in September 2024, compared to 110,702 in September 2023.
Top-selling models and market segments
The Australian market continues to be dominated by SUVs and utes, which account for around 80% of all new vehicle purchases. This trend is particularly visible in the top-selling vehicles for 2024. Leading the sales charts in September was the Toyota RAV4, with 5,182 units sold, followed by the Ford Ranger (4,485), Toyota HiLux (4,313), Ford Everest (2,902), and Isuzu Ute D-Max (2,612). These figures highlight the ongoing consumer preference for versatile, larger vehicles, especially within the SUV and light commercial vehicle (LCV) segments.
Passenger cars, on the other hand, have continued their downward trajectory, representing less than 15% of total sales. This shift in consumer preference is a significant trend, as traditional sedans and small cars are increasingly being replaced by SUVs across various buyer categories.
Buyer types: Who’s buying?
Different buyer types have shown varying trends in 2024. The private buyer segment remains the largest, contributing to over 48% of total vehicle sales. Despite this, private buyer sales saw a decline of 17.2% year-to-date compared to 2023. Business purchases, which account for approximately 35% of the market, demonstrated resilience, growing by 7.7% year-to-date. Government and rental fleet sales also contributed to overall numbers, with government purchases increasing by 23.9% year-to-date. This increase in government spending on vehicles, particularly SUVs and LCVs, reflects efforts to modernise fleets, with some emphasis on transitioning to lower-emission models.
Rental vehicle sales, however, saw an 8.1% decline. This reduction could be linked to the current economic climate and a more cautious approach by the tourism and rental industries as they recover post-pandemic.
Fuel type preferences: A shift towards hybrids
While petrol vehicles still dominate new car sales in Australia, 2024 has seen a marked shift towards alternative fuel options, particularly hybrids. Petrol-powered cars accounted for 43,403 units in September, a 17.5% decrease from the previous year. Diesel vehicles, predominantly found in SUVs and light commercial categories, also saw a decline, with 29,483 units sold, down 12.3%.
Hybrid vehicles, however, have seen substantial growth. Hybrid sales increased by 34.4% year-to-date, with 13,579 hybrid cars sold in September alone. This trend suggests that Australian buyers are becoming more environmentally conscious and are willing to explore lower-emission alternatives without fully committing to electric vehicles (EVs) yet.
Battery electric vehicles (BEVs), despite the increase in supply and the introduction of new models and brands into the Australian market, have experienced a significant decrease in sales. In September, only 3,561 electric vehicles were sold, a decline of 59.6% compared to the same month last year. This drop is likely due to the winding down of government subsidies and incentives, coupled with the limited availability of affordable electric vehicle models across different segments.
Plug-in hybrid electric vehicles (PHEVs) have enjoyed a considerable rise in popularity, with a year-to-date growth of 89.9%. Although PHEVs still represent a smaller portion of the market, this trend suggests that some consumers are finding the combination of electric and petrol power appealing as a middle ground between traditional fuel vehicles and full electric options.
Brands leading the market
Toyota continues to maintain its position as the dominant player in the Australian new car market. By September 2024, Toyota had sold 183,606 vehicles, accounting for 18.7% of total market share. The Toyota RAV4 remains the best-selling vehicle, buoyed by strong demand for hybrid variants. Other popular models include the Toyota HiLux and the Toyota LandCruiser, which also performed well in 2024.
Ford follows Toyota with 74,564 vehicles sold, representing 8.6% of the market. The Ford Ranger continues to be a best-seller, particularly in the ute segment. Mazda and Kia have also maintained strong positions, with 73,487 and 62,473 vehicles sold, respectively. Mitsubishi rounds out the top five brands with 56,998 vehicles sold, capitalising on the popularity of its Outlander SUV.
Regional sales overview
Sales trends vary across Australia’s states and territories. New South Wales remains the largest market, with 29,943 vehicles sold in September, although this marked a 16.8% decrease compared to 2023. Victoria followed closely with 24,573 units sold, also experiencing a drop of 16.5% year-on-year. Queensland recorded 21,481 sales, representing an 8.3% decline. Interestingly, the Northern Territory was the only region to see an increase in vehicle sales, rising by 5.6% compared to 2023.
2024 has been a year of both growth and adjustment for the Australian new car market. While SUVs and utes continue to dominate sales, hybrid vehicles are gaining traction as a popular alternative to traditional petrol and diesel cars. However, electric vehicle sales have been slower than anticipated, reflecting both global and local challenges in transitioning to a fully electrified vehicle fleet. Despite economic pressures, the Australian car market remains resilient, with Toyota leading the charge in what has been a transformative year for vehicle sales.
