Ute emerges as best-seller

Ford’s Ranger was the best-seller in Australia last year after the new-vehicle market sold 1,209,808 units, which was down by 0.9 per cent from 1,220,607 in 2024.

The ute, pictured, completed 56,555 registrations in 2025 and was followed by two Toyotas, with the RAV4 on 51,947 and the Hilux on 51,297.

Ford’s Everest with 26,161 sales and the Toyota Prado on 26,106 completed the top five, reinforcing the dominance of SUVs and utes in Australia’s fleet.

Toyota was the leading marque across the ditch in 2025 with 239,863 vehicles sold, representing about 19.8 per cent of the market. 

Next was Ford on 94,399, Mazda with 91,293, Kia on 82,105 and Hyundai with 77,208.

The Federal Chamber of Automotive Industries (FCAI) says the overall total underscores the resilience of the automotive industry and reflects sustained consumer demand and the continued evolution of vehicle choices in Australia.

“Consumers are responding to a wide range of models that meet their needs, whether that is family transport, business use or recreation,” adds Tony Weber, chief executive. 

“While overall volumes eased slightly, the market continues to evolve as new technologies become more widely available.”

Latest figures from the FCAI show the market closed the year on a solid note with 98,744 new vehicles sold in December, an increase of 3 per cent compared with the same month of 2024.

PHEVs increase share

Plug-in hybrid vehicles (PHEVs) recorded the strongest growth of any drivetrain in 2025 after sales more than doubled to 53,484 units, an increase of 130.9 per cent compared with 2024.

Hybrids were also on the up after climbing 15.3 per cent year-on-year to 199,133 vehicles.

“Many consumers are choosing hybrid and plug-in hybrid vehicles as a practical transition towards lower emissions,” notes Weber. 

“While the industry is investing heavily in battery electric technology, uptake ultimately depends on consumer readiness and the availability of reliable public recharging infrastructure.”

Battery EV sales from all sources totalled 103,269 units, accounting for 8.3 per cent of sales for the year.

There are more than 100 BEV models available in Australia but demand for such vehicles has been slower than expected.

“The growth of battery electric vehicle market share has been anaemic, increasing by 1.1 percentage points over the past two years, well below earlier projections,” adds Weber.

He continues that international experience shows sustained EV uptake is closely linked to the availability of consumer incentives and supporting infrastructure.

“Countries such as Germany, the Netherlands, New Zealand and the United States have seen sharp declines in EV sales when incentives were reduced or removed,” says Weber.

“In Australia, remaining support mechanisms such as fringe benefits tax concessions are currently under review. Any policy changes must recognise the clear relationship between incentives and consumer demand, not just vehicle supply.”

Sources and SUVs

Vehicles manufactured in China represented about 18 per cent of total new-vehicle sales in 2025, up from 14 per cent in 2024. China is now Australia’s third-largest source of vehicles.

Japan remained the main source, followed by Thailand. South Korea was fourth and those major Asian manufacturing nations represent 80 per cent of the market.

Consumer preferences for SUVs increased in 2025, with the segment accounting for 60.7 per cent of total sales, followed by light commercial vehicles at 22.6 per cent and passenger vehicles at 13 per cent.

SUV sales rose 5.5 per cent year on year to 733,831 units, while passenger vehicle sales fell by 22.6 per cent to 157,484 units, continuing a long-term shift away from traditional sedans and hatchbacks.