Australian Car Market Trends – Aug 2025 | Auto Buyers Guide

Australian Car Market Trends — August 2025

The Australian automotive market is proving resilient in 2025, despite economic pressures and shifting consumer habits. From surging SUV sales to the rapid rise of electric vehicles, here’s what’s shaping the market right now — and what it means for buyers.

1. New Vehicle Sales Hold Steady

Mid-year figures show the market maintaining momentum, with new vehicle registrations in June up over the same month last year. While the total number of vehicles sold in 2025 may fall slightly short of the record set in 2024, overall demand remains strong thanks to competitive finance rates, dealer incentives, and better stock availability.

2. Utes and SUVs Dominate the Market

Dual-cab utes continue to be the workhorse of Australian driveways, making up more than a quarter of all sales. The Ford Ranger, Toyota HiLux, and Isuzu D-Max remain top sellers. SUVs are also growing in popularity, offering space, versatility, and improved efficiency. Meanwhile, traditional passenger cars have slipped to a much smaller share of the market as buyers favour taller, more practical vehicles.

3. Electric Vehicles Surge Ahead

Electric vehicle sales have jumped significantly this year, now accounting for almost one in every ten new cars sold. Queensland leads the charge with the fastest growth rate in the country. Chinese brands, particularly BYD, are making major inroads by offering feature-packed EVs at competitive prices. However, industry insiders warn that oversupply in some EV segments could soften demand in the short term — a reminder for buyers to compare deals carefully.

4. Policy Changes on the Horizon

With fuel excise revenue declining, governments are exploring a road-user charge for EV owners. This would likely involve a small annual fee based on the distance driven. While designed to fund infrastructure, the change could influence the total cost of EV ownership in the coming years.

5. Premium Buyers Focus on Sustainability

The luxury car segment remains strong, with more buyers opting for hybrid and electric models from brands such as BMW, Mercedes-Benz, and Lexus. Comfort, safety technology, and eco-friendly performance are top priorities for these customers, driving innovation across the industry.

What This Means for Car Buyers in 2025

• It’s still a buyer’s market — competitive pricing and better availability mean there are deals to be found.
• Consider Chinese EVs and hybrids — these models are delivering strong value and modern features.
• SUVs and utes are well-stocked — making it a great time to shop if space and practicality are your priorities.
• Stay informed on policy changes — especially if you’re considering an EV.

Ready to find your next car? Search hundreds of vehicles from trusted Aussie dealerships at Auto Buyers Guide. Use filters for make, model, price, kilometres and more to quickly narrow your search and find the perfect match.

Visit www.autobuyersguide.com.au today — there’s a car for everyone at ABG.