Australia’s new car market continues to show resilience despite a 5.2% dip in May 2025 vehicle sales compared to the same month last year. According to the latest VFACTS report released by the Federal Chamber of Automotive Industries (FCAI), 105,285 new vehicles were sold in May, with the Toyota Hilux reclaiming its position as the country’s top-selling model.
After briefly falling behind the Ford Ranger in earlier months, the Hilux surged back to the top in May with 4,952 sales, narrowly ahead of the Ranger’s 4,761 units. However, both utes recorded significant declines year-on-year – down 13.2% and 19.5% respectively. In contrast, the Toyota RAV4, which placed third for the month with 4,003 units, continues to dominate the hybrid SUV category.
The RAV4’s performance, while 27.4% lower than the same month in 2024, highlights ongoing demand for fuel-efficient SUVs among both private and business buyers. It also reaffirms the model’s critical role in reducing fleet emissions, especially as electrification gains momentum.
Tony Weber, Chief Executive of the FCAI, acknowledged the overall market dip but remained positive about industry fundamentals: “While down 5.2 per cent compared to the same month in 2024, the results reflect a market that remains resilient and competitive by historic standards.”
SUVs remain the clear vehicle of choice for Australian buyers, making up 60.4% of all vehicles sold in the year to May—up from 55.8% in the same period last year.
Despite Toyota’s strong month, including four models in the top five (Hilux, RAV4, LandCruiser, and Prado), broader market dynamics reveal some surprising trends in buyer segments. Year-to-date sales to business buyers are steady compared to 2024, but retail purchases have fallen by 7.4%. The rental segment remained relatively stable, with a slight 2.7% drop.
The most unexpected shift came from government buyers, where vehicle sales fell by a significant 16.5% year-on-year. With many government fleets actively pursuing net zero strategies, this decline may signal delayed procurement cycles or caution due to evolving vehicle eligibility under local sustainability frameworks.
On a state-by-state basis, all regions recorded negative growth, with the ACT (-15.5%), Tasmania (-14.8%), and South Australia (-12.1%) seeing the sharpest drops.
Toyota led the market in May with 23,576 sales and a 22.4% market share, followed by Ford (8,464) and Mazda (7,845). Hyundai and Kia rounded out the top five.
While passenger vehicle sales are down 33.3% and light commercial vehicles dropped by 7.2%, SUV sales continued their upward trajectory, rising 6.6% over May 2024.
As the first half of 2025 comes to a close, the data paints a picture of a shifting Australian car market: one where hybrids continue to grow their foothold, business fleets maintain momentum, and government buyers may be rethinking their replacement schedules. Whether these trends continue through EOFY and into Q3 will depend heavily on supply conditions and pricing in a market still adjusting to emissions standards and evolving buyer expectations.
