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Base Year
Historical Year
Forecast Year
Value in Thousand Units
2024-2032
Australia Car Market Outlook
*this image is indicative*
Australia car market is seeing a surge in electric vehicle (EV) adoption, fueled by government incentives and environmental awareness. SUVs continue to be favoured for their versatility and safety, whereas hybrid vehicles appeal to consumers looking for fuel efficiency and reduced emissions. By blending traditional and electric technologies, hybrids offer a sustainable driving experience that contributes to the Australia car demand growth. According to The Australian Electric Vehicle Association (AEVA) LTD, the ACT Government's Transition to Zero Emission Vehicles Action Plan resulted in 7,233 battery electric vehicle registrations by March 1, 2024.
The Australia car market is evolving with connected cars featuring advanced technology for navigation and safety. Shared mobility options are rising in urban areas for flexibility. Consumers increasingly prioritise safety features and eco-friendly options, prompting manufacturers to adopt sustainable practices and materials in vehicle production. In November 2023, the University of New South Wales (UNSW) launched Australia's first hydrogen-powered car, the Sunswift 7. This solar-powered vehicle not only achieves remarkable efficiency, travelling 1000 kilometres on a single charge but also exemplifies advancements in renewable energy, highlighting solar power's role in the future of motoring and bolstering the Australia car market revenue.
The Australian car market is seeing increased vehicle sales driven by growing consumer confidence. There's a notable shift towards SUVs and electric vehicles, supported by government incentives like rebates and tax breaks that encourage the adoption of sustainable transportation options. Australian EV purchasers will benefit from federal incentives, including exemption from fringe benefits tax for vehicles under the luxury car tax threshold and a higher threshold of USD 89,332. The New Vehicle Efficiency Standard, effective January 2025, aims to promote EV sales and potentially lower retail prices driving the growth of the Australia car industry.
Rising fuel prices are driving consumer interest in fuel-efficient hybrids and electric vehicles. Improved financing options facilitate new vehicle purchases, while expanded charging infrastructure supports the EV market. Urbanisation is driving up the demand for compact cars, while heightened environmental awareness is prompting manufacturers to embrace sustainable practices and create eco-friendly vehicles. This shift is boosting Australia car market opportunities.
March 2024
Renault introduced the Megane E-Tech in Australia, marking its first purpose-built electric vehicle. Featuring a front-mounted motor with 160 kW and 300 Nm, it drives the front wheels and pairs with a 60-kWh battery for a WLTP range of 455 km. Weighing 1,642 kg, it’s relatively light for an EV due to its aluminium panels.
May 2023
Sojitz purchased Australia's leading pure-play operator in the used car sector, Albert Automotive Holdings Pty Ltd of Dutton Group. This move aimed to strengthen Sojitz's automobile business portfolio, given Australia's significant demand for used vehicles due to its reliance on imported new cars and older vehicle fleets.
Electric Vehicle Adoption
The Australia car market is experiencing a significant shift towards electric vehicles (EVs). Government incentives, rising fuel prices, and increased environmental awareness are shaping the Australia car market dynamics and trends. As more manufacturers launch budget-friendly electric vehicle (EV) options, consumers are increasingly open to them. Improvements in infrastructure, particularly the expansion of charging networks, are also facilitating this growth. Since the National Electric Vehicle Strategy was released in April 2023, the EV market in Australia has been evolving rapidly. The availability of more EV models, especially at lower price points, has led to nearly double the uptake of EVs in the past year. By the end of April 2024, EV sales accounted for 9.4 per cent of new vehicle sales, up from 8.4 per cent in 2023 and 3.8 per cent in 2022.
Shift to Online Sales
The Australia car market is witnessing a notable shift toward online sales; consumers are increasingly comfortable researching, purchasing, and even financing vehicles online, leading dealerships to enhance their digital platforms. This trend allows for a more streamlined buying experience, often with better pricing transparency. Virtual tours and online consultations are now standard, allowing buyers to explore options without visiting a showroom. The Australia car industry revenue is being shaped by companies like CARS24, which is changing the way Australians buy used cars. All vehicles are quality-assured and can be purchased online with confidence. The financing process is straightforward, featuring a quick five-minute pre-approval. Cars are delivered to customers' homes, and a CARS24 Carcierge assists with the handover and offers support during the first week. Each car undergoes a thorough 300-point checklist and an on-road test before being listed for sale.
Emphasis on Safety Features
The Australia car market has placed a heightened emphasis on safety features, driven by consumer demand and regulatory requirements. Advanced Driver Assistance Systems (ADAS) such as lane-keeping assist, adaptive cruise control, and automated emergency braking are increasingly standard across various models. Consumers are increasingly choosing vehicles with high safety ratings. In December 2023, Maruti Suzuki introduced the made-in-India Jimny 5-door SUV in Australia, equipped with standard advanced driver assistance systems (ADAS). This model includes both manual and automatic transmissions, and four-wheel drive, and complies with new government regulations for autonomous emergency braking (AEB), contributing to the car demand growth in Australia.
The Australia car market faces several restraints that hinder its growth. Supply chain disruptions can delay vehicle production and delivery, while strict regulatory standards complicate the introduction of new models. Economic fluctuations, such as rising interest rates and inflation, affect consumer purchasing power. Ukraine accounts for 45-54% of global semiconductor-grade neon production, and the ongoing conflict has led to a substantial shortage of microchips impacting not only the automotive sector but also manufacturing overall. With demand consistently outpacing supply, the 'Chipdemic' continues to be the main driver of supply challenges for the Australian automotive industry both currently and moving forward.
Additionally, the increasing popularity of electric vehicles (EVs) challenges traditional models, and inadequate EV charging infrastructure may deter potential buyers. Changing consumer preferences towards sustainable options further complicate matters, and market saturation leads to heightened competition and reduced profit margins for manufacturers. These factors significantly impact the growth of the Australian car market.
“Australia Car Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Market Breakup by Vehicle Type
Market Breakup by Propulsion Type
Market Breakup by Region
By Type Analysis
Hatchbacks are adaptable vehicles that provide flexible cargo space, as their rear seats can fold down, making them perfect for carrying larger items and contributing to the Australia car industry growth. Their lighter weight generally leads to better fuel efficiency, appealing to budget-conscious consumers. Compact in size, hatchbacks are easier to manoeuvre and park in crowded urban areas, a significant advantage in Australian cities. They are often more affordable than sedans, both in terms of purchase price and ongoing costs. Additionally, many hatchbacks feature sporty designs and modern technology, attracting a younger demographic.
Sedans provide enhanced comfort and space, with more interior room and legroom for passengers, making for a pleasant ride. They typically feature larger, separate trunks, ideal for carrying luggage and larger items. With a more sophisticated and polished design, sedans appeal to those seeking a professional or luxurious vehicle. Many sedans come equipped with advanced safety features, making them a popular choice for families. Additionally, sedans typically retain higher resale value than hatchbacks, making them a more appealing long-term investment for buyers and boosting Australia car demand.
By Propulsion Type Analysis
Hybrid and electric vehicles (EVs) offer significant environmental benefits by producing zero tailpipe emissions, helping to reduce air pollution. They are more fuel-efficient, combining electric and gasoline power for lower running costs. In Australia, various government incentives, such as rebates and tax benefits, enhance their financial appeal. Additionally, EVs require less maintenance due to fewer moving parts, leading to lower long-term costs. Their quiet operation also contributes to reduced noise pollution, making them particularly suitable for urban environments, thus driving the growth in the Australia car market.
Internal combustion engine (ICE) vehicles are widely available, offering consumers a diverse range of brands and models to choose from. The established fueling infrastructure ensures easy refuelling, eliminating concerns about charging station availability. ICE vehicles generally provide longer driving ranges than many EVs, making them ideal for long-distance travel. They also tend to have lower initial purchase prices, making them more accessible to a broader audience. This versatility supports their continued demand in the Australia car market.
New South Wales Car Market Regional Insights
The car market in New South Wales (NSW) is diverse, and shaped by consumer preferences, regulatory changes, and technological innovations. According to a report from the Department of Infrastructure, Transport, Regional Development, Communications and the Arts, there were 6,154,783 registered motor vehicles in NSW in 2023.
Queensland Car Market Trends
Queensland is leading the charge in electric vehicle (EV) adoption, with the number of registered all-electric vehicles tripling since the launch of the Queensland Energy and Jobs Plan in September 2022. This growth is driving growth of the Australia car market. As of June 30, 2024, there were 46,200 EVs registered, a rise of 33,272 according to the Queensland Government, Department of Energy and Climate. The state's Zero Emissions Vehicle Strategy aims for 50% of new passenger vehicle sales to be zero-emission by 2030 and 100% by 2036.
Western Australia Car Market Dynamics
The WA government promotes electric vehicle adoption through a State Electric Vehicle Strategy, investing in charging infrastructure and a ZEV rebate program. The WA Government views Zero-tailpipe Emissions Vehicles (ZEVs) as essential for its transport decarbonisation goals, underpinned by a USD 200 million State Electric Vehicle Strategy. It is investing USD 23 million in the EV charging network, with the EV Network Project set to be completed in 2024, adding 98 charging stations. Additionally, a ZEV rebate of USD 3,500 has processed 6,821 applications, totalling USD 23.87 million.
Australia car market key players produce a diverse array of vehicles, such as sedans, SUVs, and electric models, with a focus on quality and sustainability. These companies have invested heavily in eco-friendly technologies and plan to expand their electric vehicle offerings. Dedicated to improving customer experience, they continue to strengthen their presence in the Australian automotive landscape.
Bayerische Motoren Werke AG: Founded in 1916 and based in Munich, Germany, is famous for its luxury cars and motorcycles. The company is celebrated for its innovation and high performance, with a strong focus on sustainable mobility. BMW has broadened its electric vehicle range, notably with the BMW i series, maintaining its reputation as a leader in the automotive industry.
Mercedes-Benz AG: Established in 1926 and headquartered in Stuttgart, Germany, is a division of Daimler AG and is synonymous with luxury, performance, and safety. The brand's extensive vehicle lineup includes everything from sedans to SUVs, and it leads the way in automotive technology, particularly with its electric EQ series, showcasing its commitment to innovation in the industry.
Ford Motor Company: Founded in 1903 and based in Dearborn, Michigan, Ford Motor Company is a legendary American automaker recognised for its role in mass production. Known for the iconic Model T, Ford transformed the automotive industry through assembly line innovations. Today, the company offers a variety of vehicles, including trucks, SUVs, and electric options, all while emphasizing sustainability.
Honda Motor Co. Ltd.: Founded in 1948 and headquartered in Tokyo, Japan, is a prominent manufacturer of cars, motorcycles, and power equipment. The company is well-known for its engineering prowess and innovation, particularly in developing fuel-efficient and environmentally friendly technologies, such as hybrid and electric vehicles. Honda's dedication to quality and performance has solidified its status as a globally recognized automotive brand.
Other key players in the global Australia car market report include Hyundai Motor Company, Kia Corporation, Nissan Motor Co. Ltd., Toyota Motor Corporation Tesla, Inc., and Volkswagen AG among others.
July 2024
The 2025 XPeng G9 electric SUV will debut in Australia, joining the G6 mid-size SUV. The G9, a large SUV, is set to arrive by the end of 2025, followed by the X9 people-mover. Both models were showcased at TrueEV's dealer partner, Southern Classic Cars, in Wollongong.
May 2024
Aion, an all-electric brand from GAC Motor, is set to launch in Australia in April 2025. The first model will be a hatchback comparable in size to the Toyota Corolla. This marks another entry of a Chinese EV brand into the Australian market, expanding options for consumers.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2023, the market reached an approximate value of 890.80 Thousand Units.
The Australia car market is assessed to grow at a CAGR of 5.80% between 2024 and 2032.
The market is estimated to witness healthy growth in the forecast period of 2024-2032 to reach a value of around 1479.62 Thousand Units by 2032.
The regional markets include New South Wales, Victoria, Queensland, Australian Capital Territory, and Western Australia, others.
The different types in the market include hatchback, sedan, and sports utility vehicles.
The key players in the market are Bayerische Motoren Werke AG, Mercedes-Benz AG, Ford Motor Company, Honda Motor Co. Ltd., Hyundai Motor Company, Kia Corporation, Nissan Motor Co. Ltd., Toyota Motor Corporation Tesla, Inc., and Volkswagen AG among others.
The different propulsion types in the market include hybrid and electric vehicles and ICE.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
Report Features | Details |
Base Year | 2023 |
Historical Period | 2018-2023 |
Forecast Period | 2024-2032 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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Breakup by Vehicle Type |
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Breakup by Propulsion Type |
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Breakup by Region |
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Market Dynamics |
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Price Analysis: |
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Competitive Landscape |
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Companies Covered |
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