Australians bought more new cars in July 2025 than in any other July on record, according to the latest VFACTS report. A total of 103,097 vehicles were sold last month, a 3.6% increase compared to July 2024. This result points to growing buyer confidence, helped by a recent interest rate cut and hopes that borrowing costs will drop even further.
Federal Chamber of Automotive Industries (FCAI) Chief Executive Tony Weber said the result shows people are feeling more secure about making big purchases.
“We are now seeing confidence return to the market, supported by a recent interest rate reduction and anticipation of further easing,” Mr Weber said.
“Consumers are responding with interest across most segments, particularly utes and SUVs.”
Plug-In Hybrids Show Strong Growth
One of the strongest trends this year has been the rise of plug-in hybrid electric vehicles (PHEVs). Sales of PHEVs are up 183 per cent so far this year, with more than 50 models available to Australian drivers.
Mr Weber said these vehicles are an attractive option for drivers who want some electric driving ability but still need the range of a regular engine.
“With more than 50 models available in 2025, plug-in hybrids have emerged as an important transition technology for many Australians, particularly those in regional areas or those with limited access to charging,” he explained.
“They offer the ability to drive short distances on electric power while retaining the flexibility and range of a conventional engine.”
In contrast, fully electric vehicles (EVs) have not seen the same growth, remaining under 8% of total new car sales in 2025. This may be due to ongoing concerns about charging infrastructure and driving range, especially outside major cities.
Market Leaders
SUVs continue to dominate the market, while sales of traditional passenger vehicles like sedans and hatchbacks keep falling. So far in 2025, for every two passenger cars sold, Australians have bought about nine SUVs.
“In July, there was only one sedan in the top 20 models, the Toyota Corolla,” Mr Weber said. Compared to July last year, passenger car sales dropped by 19.3%, while SUV sales jumped by 11.5 per cent. Light commercial vehicles, which include Utes and vans, also increased by 3.3 per cent.
Toyota remained the top-selling brand in July, with 21,722 vehicles sold. It was followed by Mazda (7,452), Kia (7,402), Ford (7,279), and Hyundai (6,687). Toyota led the market with a large gap over its competitors, selling 14,270 more vehicles than Mazda and holding a 13.9 percentage point lead in market share.
Sales Rise Across Most States
Looking across the country, most states and territories recorded growth in new vehicle sales compared to the same time last year. The Northern Territory saw the biggest jump, with sales up 10.6 per cent to 1,047. Queensland followed with an 8.9 per cent increase (22,806), while Victoria grew by 3.1 per cent (27,496), and Western Australia by 3 per cent (10,995).
New South Wales rose by 1.9 per cent (30,940), and the ACT by 1.6 per cent (1,441). South Australia and Tasmania were the only regions to decline, falling by 1.4 per cent (6,824) and 1 per cent (1,548) respectively.
With strong demand across the board and buyers showing growing interest in both petrol and hybrid options, 2025 is shaping up to be a milestone year for the automotive sector in Australia.
“The market is healthy, and Australians are clearly interested in a wide variety of vehicle options,” Mr Webber concluded.
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