New vehicle sales for December 2025 and the full calendar year were released this week by the Federal Chamber of Automotive Industries and the Electric Vehicle Council.
New car sales in 2025 edged higher than the previous year, reaching 1,241,037 vehicles sold, representing a 0.3 per cent increase year-on-year.
While December sales were broadly consistent with the same period last year, 2025 still recorded a new annual sales record, defying earlier forecasts of a slowdown amid ongoing cost pressures and intense market competition.
Toyota retained its position as Australia’s leading automotive brand in 2025, recording 239,863 sales and a market share of 19.3 per cent. Ford and Mazda followed in second and third positions, while Kia and Hyundai rounded out the top five. Notably, Chinese-manufactured brands continued to strengthen their presence, with GWM, BYD and MG all featuring in the top ten, highlighting the growing influence of Chinese OEMs in the Australian market.
In terms of fuel types, consumers increasingly turned to electrified options. Plug-in hybrid electric vehicle (PHEV) sales more than doubled year-on-year, seeing a 130 per cent increase and making PHEVs one of the fastest growing segments from 2025. Battery electric vehicles (BEVs) also increased their share, reaching approximately 9 per cent of the market in 2025, while hybrid vehicle sales continued their upward trend, growing from 172,699 in 2024 to 199,133 vehicles in 2025. This reflects a gradual shift in buyer behaviour as more electrified models become available across a wider range of price points and segments.
SUVs and light commercial vehicles continued to dominate consumer preferences, together accounting for almost 74 per cent of total new vehicle sales for the year.
As the industry adjusts to evolving emissions policy settings and intensifying competition, particularly from new market entrants, 2026 is expected to remain a challenging year for dealers and manufacturers alike.