According to media reports, data from the Federal Chamber of Automotive Industries shows that new car sales in Australia reached an all-time high in May. Sales of hybrid vehicles doubled year-on-year, capturing a market share of 15.8%, while electric vehicle sales increased by only 0.4%.
Currently, nearly one in four new cars in Australia is a low-emission vehicle, with hybrids and electric vehicles taking a larger market share. Meanwhile, Australians' preference for larger vehicles continues to rise, with SUVs remaining dominant and light truck (ute) sales steadily increasing.
This trend has led to more than a doubling in the popularity of hybrid vehicles in 2024, with sales exceeding 66,000 units, compared to less than 30,000 units in the same period in 2023.
In May, electric vehicle sales in Australia also grew, reaching over 8,900 units and accounting for 8.1% of all new car sales. In the first five months of this year, more than 40,000 new electric vehicles hit the roads in Australia.
Tony Weber, the chief executive officer of the chamber, stated that the automotive industry is striving to meet drivers' demands. He said, "The continued growth in car sales highlights consumer confidence, and it also shows that the automotive industry can meet the diverse needs of Australian consumers despite current economic challenges."
However, regardless of fuel efficiency, large vehicles remain a popular choice among drivers. SUVs account for more than half of the sales, and light commercial vehicles, such as utes, make up 22% of new car sales. Utes also took three out of the top five spots for best-selling cars in May, with the Ford Ranger leading, followed by the Toyota HiLux and the Isuzu D-Max in fourth place.
Toyota once again became the best-selling car manufacturer in Australia for the month, followed by Ford, Mazda, Kia, and Hyundai. Data also showed a decline in sales for electric vehicle leader Tesla, which sold 3,567 units in Australia in May, down from 4,476 units in the same period last year.
In contrast, its main electric vehicle competitor, BYD, saw its sales climb, with the Chinese company selling 1,914 electric vehicles in the month, a 32% increase from the same period last year.
Amidst the growing sales of electric and hybrid vehicles, Australia's first fuel efficiency standards will be introduced in January next year. These regulations will set emission limits for automakers' passenger cars, large vehicles, and commercial fleets, aiming to reduce traffic emissions by 2030.
