Australia Automotive Market 2025: Industry Size, Share, Growth, Trends and Forecast by 2033

The latest report by IMARC Group, "Australia Automotive Market Report by Vehicle Type, Engine Type, and Region, 2025-2033," provides an in-depth analysis of the Australia Automotive Market. The report also includes competitor and regional analysis, along with a breakdown of segments within the Australia automotive industry. The market size reached 1.22 Million Units in 2024 and is projected to grow to 2.50 Million Units by 2033, exhibiting a robust growth rate of 7.60% during 2025-2033.

Report Attributes and Key Statistics:

• Base Year: 2024
• Forecast Years: 2025-2033
• Historical Years: 2019-2024
• Market Size in 2024: 1.22 Million Units
• Market Forecast in 2033: 2.50 Million Units
• Growth Rate (2025-2033): 7.60%

Australia Automotive Market Overview:

The Australia Automotive Market is experiencing robust growth driven by rising electric vehicle adoption with EV registrations reaching 29,715 units by July 2025 exceeding 24,000 for entire 2024 representing 5% of new registrations, government allocating USD 50 million subsidizing EV loans for farmers and truckers encouraging electric ute adoption, and surging SUV demand with 57% market share in 2024 driven by hybrid and plug-in hybrid variants posting 89% and 107% year-over-year increases. Chinese automotive manufacturers achieving 12% market share in 2024 with four brands reaching national top ten in August 2025 introducing competitive technologies. Record 1,237,288 vehicles delivered in 2024 demonstrating market strength. Autonomous technology advancements and expanding charging infrastructure positioning automotive sector as critical transportation evolution driver.

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Australia Automotive Market Trends:

Australia Automotive Market trends include Chinese brand dominance accelerating with BYD, GWM, MG, and Chery achieving top ten positions in August 2025 first time four Chinese brands simultaneously ranking with 12% combined market share expanding potentially to 20% in 2025 introducing 15 brand names covering all segments. Electric vehicle momentum strengthening with BYD overtaking Tesla in August 2025 with 3,064 sales versus 2,927 demonstrating Chinese EV competitiveness. Plug-in hybrid surge continuing with 183% year-to-date growth despite FBT exemption ending with BYD Shark 6 achieving 2,993 deliveries June 2025 demonstrating sustained demand. New Chinese entrants including Geely, Leapmotor, Deepal, Skywell, JAC, and Denza launching with experienced management and factory backing. Hybrid vehicles driving growth with 89% year-over-year increase combining internal combustion engines with electric motors enhancing fuel efficiency. Ford Ranger emerging as top-selling vehicle 2024 with 62,593 units beating Toyota RAV4 demonstrating ute market strength.

Australia Automotive Market Drivers:

Australia Automotive Market drivers include record vehicle sales with 1,237,288 delivered in 2024 achieving all-time high and July 2025 becoming strongest July with 104,244 deliveries up 2.0% demonstrating robust demand. Government EV incentives with USD 50 million allocated 2025 subsidizing electric vehicle loans for farmers and truckers encouraging adoption particularly electric utes addressing agricultural sector needs. SUV market dominance with 57% share requiring robust efficient steering systems with hybrid SUVs posting 89% year-over-year increase and PHEV SUVs surging 107% demonstrating electrification preference. Chinese manufacturer expansion with BYD surging 367.9% June 2025 to 8,156 units driven by Shark 6 pickup launch and Sealion 7 electric SUV introducing competitive pricing and technologies. Rising fuel prices making electric and hybrid vehicles economically attractive with significantly lower cost-per-kilometer for daily commuters. Premium vehicle segment growth with BMW, Mercedes-Benz, and Tesla experiencing strong sales particularly electric and hybrid luxury models.

Market Challenges:

• Cost-of-Living Pressures economic uncertainties and inflation impacting discretionary spending with private segment sales slowing H2 2024 continuing into 2025 affecting demand

• New Vehicle Efficiency Standard NVES introduced January 2025 imposing potential penalties for emissions non-compliance creating cost pressures affecting pricing strategies

• Chinese Competition Intensity 15 Chinese brand names by end 2025 covering all segments with USD 25,000 to six-figure pricing creating fierce competition

• EV Charging Infrastructure Gaps limited charging stations particularly outside Metro regions constraining range confidence affecting adoption despite government incentives

• Import Dependencies all vehicles being imported making market vulnerable to global supply chain disruptions and currency fluctuations

• Dealer Inventory Challenges growing manufacturer inventory and intense competition requiring discounts and lower finance rates to move metal

• Tesla Sales Decline Tesla down 64.6% year-over-year July 2025 with only 917 deliveries demonstrating EV market volatility

• Consumer Preference Shifts migration from internal combustion with passenger vehicles dropping from 93% ICE in 2019 to 62% in 2024 requiring portfolio adjustments

Market Opportunities:

• Chinese Brand Expansion capitalizing on 20% potential market share in 2025 with 15 brand names launching including Geely EX5, Leapmotor C10, GAC Aion V

• Electric Vehicle Growth EV market share reaching 10% in 2025 from 7.7% in 2024 with approximately 115,000 sales supported by government incentives

• Plug-In Hybrid Surge leveraging 183% year-to-date growth with over 50 models available providing transition technology for regional areas

• SUV Segment Innovation developing hybrid and PHEV variants with 57% market share and 89%/107% respective growth rates

• Autonomous Vehicle Development Applied EV creating autonomous electric vehicles for street sweeping and garbage removal addressing labor shortages

• Premium EV Market Polestar opening Adelaide dealership January 2025 and Denza brand launching targeting BMW and Mercedes-Benz segments

• Regional Manufacturing establishing local assembly facilities reducing import costs and enabling faster market responsiveness

• Aftermarket Services Growth USD 7.9 billion aftermarket reaching USD 12.1 billion by 2032 with millions of vehicles out of warranty

Australia Automotive Market Segmentation:

By Vehicle Type:

• Passenger Cars
• Commercial Vehicles

By Engine Type:

• Electric Vehicle
• Hybrid Electric Vehicle
• Plug-In Hybrid Electric Vehicle
• Mild Hybrid Vehicle
• Natural Gas Vehicle
• Fuel Cell Electric Vehicle
• Diesel Vehicle

By Regional Distribution:

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Automotive Market News:

October 2025: VFACTS October 2025 confirmed Chinese brands continuing growth trajectory with four brands GWM, BYD, MG, and Chery maintaining top ten positions demonstrating sustained market penetration. Toyota retained top spot with 19,726 deliveries up 6.8% while Ford sat second with 7,570 deliveries. Hybrid vehicles driving growth across categories supporting transition from internal combustion engines positioning Chinese manufacturers and electrification as market transformation drivers.

September 2025: VFACTS September 2025 announced new vehicle registrations of 101,992 units representing 5.1% increase compared to September 2024 with year-to-date sales of 914,439 units demonstrating resilient market. SUVs maintaining dominance with 60.4% market share requiring robust steering mechanisms supporting premium technology adoption. Market momentum continuing despite cost-of-living pressures demonstrating underlying demand strength supporting industry optimism.

August 2025: VFACTS August 2025 revealed historic milestone with four Chinese brands BYD, GWM, MG, and Chery achieving national top ten first time combined helping keep Isuzu Ute, Subaru, Volkswagen, and Nissan out of top ten. BYD overtook Tesla with 3,064 sales versus 2,927 in BEV market while total Chinese brand sales increased 67% year-over-year demonstrating competitive strength transforming market dynamics.

July 2025: VFACTS July 2025 reported strongest July on record with 104,244 deliveries up 2.0% establishing new benchmark. Diesel vehicles up 8.0% and EVs up 7.1% while PHEVs surged 81.7% year-over-year to 4,031 units with 183% year-to-date growth. BYD achieved 158% year-over-year increase to 4,607 deliveries while Chinese brands collectively surged 53% demonstrating market disruption momentum.

June 2025: VFACTS June 2025 confirmed BYD surging 367.9% to 8,156 units driven by Shark 6 pickup launch achieving 2,993 deliveries and Sealion 7 electric SUV success occupying fifth position demonstrating PHEV and EV competitiveness. Tesla posted best month since June 2024 with 4,589 deliveries up from previous months while Ford Ranger reclaimed top spot from Toyota HiLux with 6,293 versus 6,195 deliveries.

January 2025: Polestar opened first South Australia dealership in Adelaide expanding EV accessibility while Applied EV announced development of autonomous electric vehicles for monotonous tasks including street sweeping and garbage removal. Geely Auto committed to Australian market planning new dealerships and launching EX5 electric vehicle first half 2025 demonstrating international manufacturer confidence in market potential supporting diverse EV options.

Key Highlights of the Report:

• Market analysis projecting growth from 1.22 million units (2024) to 2.50 million units (2033) with 7.60% CAGR
• Record 1,237,288 vehicles delivered in 2024 achieving all-time high with Ford Ranger emerging as top-selling vehicle
• EV registrations reaching 29,715 units by July 2025 exceeding 24,000 for entire 2024 representing 5% of new registrations
• Four Chinese brands achieving national top ten positions August 2025 first time with 12% combined market share
• Government allocating USD 50 million 2025 subsidizing EV loans for farmers and truckers supporting electric ute adoption
• SUVs dominating with 57% market share driven by hybrid variants up 89% and PHEV variants up 107% year-over-year
• BYD overtaking Tesla August 2025 with 3,064 versus 2,927 BEV sales demonstrating Chinese competitiveness
• PHEV sales surging 183% year-to-date despite FBT exemption ending with over 50 models available
• Passenger cars dominating vehicle type segment while electric vehicles and hybrids experiencing fastest growth rates
• New South Wales representing largest regional market with highest population concentration and vehicle registrations

Frequently Asked Questions (FAQs):

Q1: What are the primary factors driving Australia Automotive Market growth to 2.50 million units by 2033?

A1: Market driven by record 1,237,288 vehicles delivered 2024, EV registrations reaching 29,715 units by July 2025, government USD 50 million EV subsidies, and SUV dominance with 57% share supporting 7.60% growth rate.

Q2: How are Chinese brands and electrification transforming the Australia automotive landscape?

A2: Four Chinese brands achieving top ten August 2025 first time with 12% market share potentially reaching 20% in 2025. BYD overtaking Tesla with 3,064 versus 2,927 sales. PHEV surging 183% year-to-date and hybrid SUVs up 89% position Chinese competition and electrification as transformation drivers.

Q3: What opportunities exist for automotive stakeholders in emerging Australia market segments?

A3: Opportunities include Chinese brand expansion with 15 names launching, EV market reaching 10% share with 115,000 sales, PHEV leveraging 183% growth with 50+ models, SUV hybrid innovation, autonomous vehicle development, premium EV targeting luxury segments, and aftermarket services reaching USD 12.1 billion by 2032.

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