Australia’s new vehicle market declined in February 2025, with sales dropping by 9.6% compared to the same time last year. A total of 94,993 new vehicles were sold, as cost-of-living pressures continued to impact consumer demand.
Vehicle sales dropped in every Australian state and territory compared to February 2024. The Australian Capital Territory saw the biggest decline, down 16.2 per cent. Tasmania also had a significant drop of 18.6 per cent. New South Wales recorded a 6.7% decrease, while Victoria fell by 13.0 per cent.
Queensland, South Australia, Northern Territory, and Western Australia also experienced drops in sales, reflecting the overall trend of declining consumer demand.
SUVs and Light Commercial Vehicles Remain Popular
Despite the overall drop, SUVs and light commercial vehicles continued to dominate the market. SUVs made up 60.4 per cent of total sales, while light commercial vehicles accounted for 22.5%. However, passenger vehicle sales fell, making up just 13.5 per cent of the market.
The sale of battery electric vehicles (BEVs) was a major concern for the industry. BEVs made up only 5.9 per cent of total sales in February, compared to 9.6 per cent in the same month last year.
“We are now two months into the Government’s New Vehicle Efficiency Standard, and while the supply of battery electric vehicles has risen dramatically, consumer demand has fallen by 37 per cent this year compared with the first two months of 2024,” said FCAI Chief Executive Tony Weber.
He added that there are now 88 EV models available in Australia, but consumer interest remains lower than expected.
“The easy part is to set aspirational targets but without consumers demanding EVs, the NVES will not succeed. It is time for the Government to consider the realities faced by consumers,” he said
Market Leaders
Toyota remained the top-selling car brand in February, with 18,832 units sold. Mazda followed with 8,797 sales, while Kia (6,707), Ford (6,337), and Mitsubishi (6,119) rounded out the top five.
The Toyota RAV4 was the best-selling model, with 4,405 units sold. The Ford Ranger came in second (4,040), followed by the Toyota HiLux (3,616), Toyota Prado (2,723), and Mitsubishi Outlander (2,385).
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