Record new car sales for 2024 despite cost of living pain

Australia's new car market achieved a record number of sales in 2024, despite increasing cost of living pressures and softening demand.

In 2024 1,237,360 new vehicles were sold in Australia - the biggest result in history - and Toyota again dominated the market, with almost one in five vehicles sold here being from the Japanese brand.

But it was the Ford Ranger that again came out on top in our market, with a huge 62,593 units registered in 2024.

And while last year the Ranger pipped the HiLux for the number 1 position, in 2024 it was the Toyota RAV4 that ran second (58,718 units), with the HiLux ranking third (53,499).

Nine out of the top 10 best-selling vehicles of 2024 were utes or SUVs:

1. Ford Ranger - 62,593
2. Toyota RAV4 - 58,718
3. Toyota HiLux - 53,499
4. Isuzu D-Max - 30,194
5. Mitsubishi Outlander - 27,613
6. Ford Everest - 26,494
7. Toyota Corolla - 24,027
8. Mazda CX-5 - 22,835
9. MG ZS / ZST - 22,629
10. Kia Sportage - 22,210

Moreover, Toyota was easily the best-selling brand in the market, marking the 22nd straight year of being number one, and the 28th time since records began. Here's how the top 10 shaped up in 2024:

1. Toyota - 241,296 sales, 19.5% share (/)
2. Ford - 100,170 sales, 8.1% share (+)
3. Mazda - 95,987 sales, 7.8% share (-)
4. Kia - 81,787 sales, 6.6% share (/)
5. Mitsubishi - 74,547 sales, 6.0% share (+)
6. Hyundai - 71,664 sales, 5.9% share (-)
7. MG - 50,592 sales, 4.1% share (/)
8. Isuzu Ute - 48,172 sales, 3.9% share (+)
9. Nissan - 45,284 sales, 3.7% share (+)
10. GWM - 42,782 sales, 3.5% share (+)

Toyota Australia vice president of sales, marketing and franchise relations, Sean Hanley, says the results show the Australian economy, more broadly, is still going strong.

"This is a really important part of the business news, because results and trends in the automotive industry provide what we believe is an early and significant indicator of the health of the Australian economy, and while we are facing some challenges, there's no doubt that indicator that we will see today is in fact, in really good shape," says Hanley.

"Last year, Australians bought more new motor vehicles than during any other year in the industry's history. The total was 1,237,360 breaking the record that was set just one year earlier," he says, indicating that the strong sales for Toyota and Ford were largely on the back of a strong existing order bank finally being met with better supply.

But the Australian new car market is one in flux, with big-name brands falling by the wayside as newcomers from China arrive in droves, and 2024 saw two Chinese brands make the top 10 for the first time.

MG continues to be popular thanks to its sharp pricing and large dealer network, while GWM made the top 10. Mainstays like Subaru fell short of the top 10 this time around, and Volkswagen and Tesla also fell outside the 10.

Hanley says established legacy car makers aren't taking the increase in competition from China lightly.

"The Australian new car market has always been one of the most competitive in the world, and 2025 will be no different," he says.

"We expect to see more new brands and models, which means more choice and even stronger competition, which, in the end, is great for the consumer.

"By all reports, there could be a dozen new Chinese car companies arriving in Australia by the end of next year. In the past five years, they have taken more than 13 percentage points of market share from established brands."

Where those Chinese brands are making strides is in the electrification of the landscape, and in 2024, electrified vehicle sales saw a big change, with a growing number of battery electric vehicles (BEVs), hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) making their ways into Australia's driveways.

But BEVs didn't shoot up the sales charts as predicted - there were 91,375 EVs sold, up 4.8% on 2023's numbers, indicating a modest increase and a tapering of demand from fleet and private customers.

PHEVs saw a bigger level of growth, up 100.2% on 2023's numbers, recording 23,163 sales, partly driven by incentives for these vehicles for lessees to dodge fringe-benefits tax.

But 'regular' hybrids - those that don't need to be plugged in, and can be driven 'normally' - saw a huge volume increase, from 98,105 in 2023 to a substantial 172,696 vehicles in 2024, of which Toyota accounted for 118,081 (or 68.4% of all hybrids in Australia).

After a record year for new car sales in Australia in 2024, it's time to get out the crystal ball and see what is in store for the Australian new car market in 2025:

1. More new car brands: You can expect there will be even more new brands from China in the next 12 months, including the reintroduction of Foton, an offshoot of BYD called Denza, and a new SUV brand from Chery called Jaecoo. Aion, GAC and more may also arrive.
2. Some legacy brands might pull out of the market: There's a chance that, with the pressure from all these new brands scrambling for market share, there will be some attrition. Smallfry sellers are at risk.
3. More hybrids: It won't just be Toyota bolstering its mix with electrified vehicles - more and more brands will introduce new hybrid vehicles to help them achieve lower fleet emissions. Expect Toyota to finally add a plug-in hybrid to its ranks in 2025, too.
4. A rush on plug-in hybrids: The FBT exemption on plug-in hybrid models is scheduled to end by March 31, 2025 - and that could mean a rush on those vehicles in the lead-up to the deadline. Stock clearance sales are likely if the exemption isn't extended.
5. Diesels in decline: The diesel market is drying up, and while commercial vehicles are still running on the old-school fuel, more and more brands are shifting away from it in passenger vehicles. You can expect that to be a continued trend in 2025, with the axe hanging over a number of oil-burning models.

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