Australia’s Automobile Market in 2025

New vehicle sales in Australia reached 1.24 million units in 2025, a 0.3% increase year-on-year. While commercial vehicle sales decreased by 1.0% to 318,000 units, passenger vehicles rose by 0.8% to 923,000 units, exceeding the previous year’s performance and supporting the overall market. Despite the negative impact of a rising cost-of-living—driven by soaring housing prices and high policy interest rates—the market hit a record high for the third consecutive year. A key factor behind this growth is the increase in imported Chinese vehicles. Chinese models have become highly competitive due to their relatively low prices and longer warranty periods compared to brands from other countries.