Australia’s new-car market holds firm in 2025 as fleets shape demand – Fleet Auto News
Australia’s new-car market proved its resilience in 2025, finishing the year with 1,209,808 new vehicles sold, according to the Federal Chamber of Automotive Industries (FCAI). While total volumes eased slightly compared with record highs in recent years, the result underscores the market’s ability to adapt as buyer preferences, powertrains and supply sources continue to evolve.
December provided a solid close to the year, with 98,744 vehicles sold, up 3 per cent on December 2024, reinforcing confidence that demand remains steady despite ongoing economic and policy uncertainty.
One of the standout themes from the 2025 results is the continued dominance of fleet buyers. Fleet purchases accounted for 50.36 per cent of all new-vehicle sales, confirming that business, government and rental buyers remain central to overall market performance.
Within fleet channels, the picture was mixed. Business fleet sales increased by 10.6 per cent, while rental grew by 3.5 per cent, reflecting improving travel activity and replacement cycles. These gains were offset by declines in heavy commercial vehicles (down 11.6 per cent) and government fleet purchases (down 15.3 per cent), highlighting the pressure being felt in capital-intensive and publicly funded segments.
Electrified vehicles continued to gain ground, though at different rates. Plug-in hybrid vehicles were the standout performer, with sales more than doubling to 53,484 units, an increase of 130.9 per cent year-on-year. Conventional hybrids also strengthened their position, rising 15.3 per cent to 199,133 units, cementing their role as the most popular lower-emissions option for Australian buyers.
Battery electric vehicles (BEVs) totalled 103,269 sales, representing 8.3 per cent of the market. While more than 100 BEV models are now available locally, growth has been slower than many earlier forecasts, underlining the ongoing influence of infrastructure availability, incentives and buyer confidence.
Australian buying habits remained consistent in 2025, with SUVs accounting for 60.7 per cent of all sales, followed by light commercial vehicles at 22.6 per cent. Passenger cars continued their long-term decline, falling 22.6 per cent to 157,484 units for the year.
At a brand level, Toyota led the market with 239,863 sales, ahead of Ford, Mazda, Kia and Hyundai. The year’s top-selling vehicles were the Ford Ranger, Toyota RAV4 and Toyota HiLux, reinforcing the dominance of utes and SUVs across both private and fleet buyers.
China continued to consolidate its role as a key vehicle source, accounting for around 18 per cent of all new vehicles sold in 2025, making it Australia’s third-largest supply market behind Japan and Thailand.
Looking ahead, 2025’s results show a market in transition rather than decline. Fleet buyers remain the backbone of new-vehicle demand, electrified powertrains are gaining traction at different speeds, and buyer preference continues to favour versatile SUVs and utes. As policy settings, incentives and infrastructure develop, fleets will remain central to shaping what Australia’s new-car market looks like next.
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