Australia’s new vehicle market records 1.21 million sales in 2025 – Australasian Fleet Management Association – AfMA
Australia’s new vehicle market recorded total sales of 1,209,808 units in 2025, according to data released by the Federal Chamber of Automotive Industries (FCAI).
FCAI chief executive Tony Weber said the result reflected ongoing demand across multiple vehicle segments.
“Consumers are responding to a wide range of models that meet their needs, whether that is family transport, business use or recreation,” Mr Weber said.
The market closed December 2025 with 98,744 vehicles sold, an increase of 3 per cent compared with December 2024.
Plug-in hybrid vehicle sales rose to 53,484 units in 2025, an increase of 130.9 per cent compared with 2024. This represented the largest year-on-year growth of any drivetrain category.
Hybrid vehicle sales totalled 199,133 units, up 15.3 per cent year on year.
Battery electric vehicle sales reached 103,269 units, accounting for 8.3 per cent of total sales for the year. More than 100 battery electric vehicle models were available in the Australian market during 2025.
“The growth of battery electric vehicle market share has increased by 1.1 percentage points over the past two years,” Mr Weber said.
The New Vehicle Efficiency Standard (NVES) commenced in 2025. Official compliance reporting for the first year is expected in coming weeks.
Mr Weber said 2025 targets were relatively achievable, with tighter limits scheduled in future years.
“The NVES has provided policy certainty and increased the availability of EVs in Australia,” he said.
FCAI noted international examples where changes to incentives affected electric vehicle sales.
“In Australia, remaining support mechanisms such as Fringe Benefits Tax concessions are currently under review,” Mr Weber said.
“Any policy changes must recognise the relationship between incentives and consumer demand.”
Vehicles manufactured in China accounted for approximately 18 per cent of Australian new vehicle sales in 2025, up from around 14 per cent in 2024. China ranked as Australia’s third-largest source of vehicles, behind Japan and Thailand, and ahead of Korea.
Combined, Japan, Thailand, China and Korea accounted for approximately 80 per cent of total vehicle sales.
SUVs represented 60.7 per cent of total sales in 2025, with 733,831 units sold, an increase of 5.5 per cent year on year.
Light commercial vehicle sales accounted for 22.6 per cent of the market, while passenger vehicle sales accounted for 13.0 per cent. Passenger vehicle sales declined by 22.6 per cent to 157,484 units.
Toyota led the Australian market in 2025 with 239,863 vehicles sold, followed by Ford (94,399), Mazda (91,293), Kia (82,105) and Hyundai (77,208).
The top-selling vehicles were the Ford Ranger (56,555), Toyota RAV4 (51,947), Toyota HiLux (51,297), Ford Everest (26,161) and Toyota Prado (26,106).
Vehicle sales declined in the Australian Capital Territory (-3.8 per cent), New South Wales (-0.3 per cent), Queensland (-1.3 per cent), South Australia (-2.4 per cent), Tasmania (-2.2 per cent) and Victoria (-1.4 per cent). Sales increased in the Northern Territory (0.6 per cent) and Western Australia (1.0 per cent).
December 2025 had 25 selling days compared with 24 in December 2024. Average daily sales declined by 45.9 vehicles compared with the same month last year.
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AFMA
The Australasian Fleet Management Association (AfMA) is a member based, not-for-profit peak industry body throughout Australia, New Zealand and South East Asia. AfMA’s membership base is represented across all industries including Federal, State and Local Government and is responsible for the management of many hundreds of thousands fleet vehicles.
AfMA may receive moneys from its corporate partners. Any funds received are utilised to reduce AfMA’s operating costs and therefore subsidise membership fees.
© 2026 AfMA.
