Omari Gates
Australia is home to a large number of car dealerships, with over 3,700 new car and truck dealerships operating across the country. These dealerships range from small, family-owned businesses to larger, publicly owned enterprises. The Australian car market has faced challenges in recent years, including economic uncertainty, supply chain issues, and cost-of-living pressures, but it has also proven resilient, with record surges in car sales and a growing demand for electric and hybrid vehicles. With a diverse range of dealerships and a dynamic market, Australia's automotive industry is an interesting and evolving landscape.
| Characteristics | Values |
|---|---|
| Total number of car dealers in Australia | 14,803 |
| Number of new car and truck dealerships | Over 3,700 |
| Number of new car dealerships | 1,500 |
| Number of used car dealerships | N/A |
| Number of car dealers in Victoria | 3,613 |
| Number of car dealers in New South Wales | 3,497 |
| Number of car dealers in Queensland | 3,078 |
| Percentage of market share in the Australian car dealers industry | Victoria (24%), New South Wales (24%), Queensland (21%), Combined (69%) |
| Number of used cars sold in Australia in 2023 | Over 2 million |
| Percentage of used cars sold through dealerships | 38.9% |
| Percentage of new cars sold that were hybrid, PHEV or fully electric | 16.2% |
| Percentage of used cars sold that were green vehicles (hybrid, electric, PHEV) | Less than 4% |
| Most popular type of car owned by Australians in 2024 | SUVs |
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What You'll Learn
- There are over 3,700 dealerships in Australia, with 1,500 new car dealers operating over 3,000 dealerships
- Victoria has the most car dealers, with 3,613 companies, followed by New South Wales with 3,497
- SUVs are the most popular type of car, with over half of all sales
- Hybrid, PHEV, and electric vehicles made up 16.2% of new car sales in 2023
- The Australian car market is expected to grow at an annualised 4.8% over five years to 2024-25
There are over 3,700 dealerships in Australia, with 1,500 new car dealers operating over 3,000 dealerships
Australia is home to over 3,700 new car and truck dealerships, ranging from small, family-owned businesses to large, publicly owned enterprises. Of these, around 1,500 new car dealers operate over 3,000 dealerships. The industry has experienced significant fluctuations in recent years, with external factors such as economic conditions, supply chain issues, and the COVID-19 pandemic impacting sales and revenue.
Despite these challenges, the motor vehicle dealer industry in Australia is projected to grow. Revenue is expected to increase at an annualised rate of 4.8% over the five years leading up to 2024-25, reaching an impressive $68.5 billion. This growth is fuelled by a combination of delayed purchases, recovering supply chains, and surging car sales, particularly in the SUV segment, which accounts for over half of all sales by volume.
The eastern seaboard of Australia, including Victoria, New South Wales, and Queensland, dominates establishment numbers and is a hub for competition among large firms. These three provinces alone account for approximately 69% of the market share in the country. Within this competitive landscape, motor vehicle dealers navigate their position as price-takers, striving to maintain relationships with both manufacturers and buyers.
While the industry faces cost-of-living pressures and increased logistics costs, dealers have been able to expand their profit margins by passing on freight costs and capitalising on weak supply conditions. Additionally, there is a notable shift towards hybrid, PHEV, and electric vehicles, with these green vehicles accounting for 16.2% of new car sales in 2023 and an increasing presence in the used car market.
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Victoria has the most car dealers, with 3,613 companies, followed by New South Wales with 3,497
Australia is home to over 3,700 new car and truck dealerships, ranging from small, family-owned businesses to larger, publicly owned enterprises. The Australian car market has experienced a turbulent period in recent years, with economic uncertainty, supply chain issues, and the COVID-19 pandemic causing fluctuations in sales and revenue. However, the industry has proven resilient, with record surges in car sales and a projected growth in market size over the coming years.
Victoria leads the way with 3,613 car dealerships, capturing a significant 24% share of the Australian car dealers' industry. This prominent position in the market underscores the vibrant automotive sector in Victoria, attracting both local and interstate car buyers. The province has established itself as a hub for car sales, catering to diverse consumer preferences and reinforcing its reputation as a key player in the Australian automotive landscape.
New South Wales closely follows Victoria, hosting 3,497 car dealers and accounting for another substantial 24% of the market. The sheer number of dealerships in New South Wales highlights the intense competition within the industry in this province. Dealers in New South Wales navigate the challenges of price-taking in a competitive market, striving to maintain harmonious relationships with both manufacturers and buyers.
Combined, Victoria and New South Wales dominate the Australian car dealers' landscape, with their high dealership concentrations contributing to a substantial 69% market share. This duopoly reflects the allure of these provinces for car dealers, underpinned by population density and easy access to major port facilities, which facilitate higher profit margins.
Queensland completes the trio of provinces with the highest number of car dealers, boasting 3,078 dealerships and capturing a notable 21% market share. Together, Victoria, New South Wales, and Queensland exert a significant influence on the automotive industry in Australia, shaping trends, sales, and consumer choices on a national scale.
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SUVs are the most popular type of car, with over half of all sales
Australia is home to over 3,700 new car and truck dealerships, ranging from small, family-owned businesses to large, publicly owned enterprises. The industry has faced drastic changes in trading conditions, with economic uncertainty and supply issues causing some of the largest declines in revenue since the global financial crisis. However, these factors have not dampened the demand for cars, and car sales have surged as supply chain issues have eased.
SUVs are the most popular type of car in Australia, with over half of all sales. In 2024, about 57% of new vehicles sold in the country were SUVs, a share that has been steadily increasing over the years. The popularity of SUVs can be attributed to various factors, including their versatility, better visibility, and ease of ingress and egress. The category encompasses a wide range of vehicles, from \"light\" SUVs such as the Toyota Yaris Cross to \"upper large\" ones like the Toyota LandCruiser.
The increasing demand for larger vehicles, including SUVs, has led to a shift in consumer preferences towards bigger cars. This trend is reflected in the top-selling vehicles in Australia, with the Ford Ranger, a large SUV, claiming the top spot in 2024. Toyota's RAV4 SUV was the second most popular choice, followed by the Toyota HiLux, another large SUV.
While the popularity of SUVs continues to grow, there are concerns about their environmental impact and safety risks. SUVs are typically fuel-guzzling and contribute to higher emissions. Additionally, the increased size and weight of SUVs pose a greater risk to pedestrians and other drivers in the event of an accident. Despite these downsides, the SUV segment is expected to remain popular in Australia, driven by factors such as increased advertising, tax perks, and the flexibility offered by larger vehicles.
As the market evolves, electric vehicle (EV) options within the SUV segment are also gaining traction. The Polestar 4 mid-size SUV and the Mahindra XUV700 and XUV3XO are examples of fully electric or hybrid SUVs entering the Australian market. These vehicles offer environmentally conscious alternatives to traditional fuel-powered SUVs while still catering to the demand for versatile and spacious cars.
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Hybrid, PHEV, and electric vehicles made up 16.2% of new car sales in 2023
Australia is home to over 3,700 new car and truck dealerships, with around 1,500 new car dealers operating over 3,000 dealerships. The industry has faced drastic trading condition changes, with economic uncertainty and supply issues causing significant declines in revenue. However, despite these challenges, the demand for cars has remained robust, and revenue is projected to grow at an annualized rate of 4.8% over the five years leading to 2024-25, reaching an impressive $68.5 billion.
In 2023, hybrid, plug-in hybrid electric vehicles (PHEV), and battery electric vehicles (BEV) made up a significant 16.2% of new car sales in the United States. This marks a notable increase from 2022, when these vehicles accounted for 12.9% of total sales. The rise in sales can be attributed to several factors, including an increase in the number of BEV model options, hybrid vehicles being offered in more popular size classes, and a decline in BEV prices. Additionally, manufacturer price cuts and incentives such as the Clean Vehicle Credit and Qualified Commercial Vehicle Credit from the Inflation Reduction Act made BEVs more affordable for consumers.
The growing popularity of electric vehicles is not unique to the United States. In the United Kingdom, electric car sales reached a share of nearly 30% in 2025, up from 24% in 2023. Norway is leading the way in electric vehicle adoption, with 88% of car sales being battery electric and just under 3% plug-in hybrid. As a result, Norway's oil consumption for road use decreased by 12% in 2024 compared to 2021, showcasing the potential environmental benefits of widespread electric vehicle adoption.
While the Australian car market data for 2023 is not yet available, it is worth noting that SUVs are currently the vehicle of choice for Australian consumers, accounting for over half of all sales by volume. The eastern seaboard, including Victoria, New South Wales, and Queensland, dominates establishment numbers and is the center of competition for large firms. As the electric vehicle market continues to evolve globally, it will be interesting to see its impact on the Australian car industry in the coming years.
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The Australian car market is expected to grow at an annualised 4.8% over five years to 2024-25
The Australian car market is expected to grow at an annualised 4.8% over the five years to 2024-25. This growth will be driven by several factors, including a recovering economy, rising household incomes, a rebounding housing market, and expectations of rate cuts.
After a challenging period due to the COVID-19 pandemic, supply chain issues, and cost-of-living pressures, the Australian car market is showing positive signs of recovery. In 2024, the market reached a decade-high of 1.19 million units, with a 1.9% increase from the previous year. This growth is expected to continue, with a projected 2% GDP growth in 2025.
One of the key drivers of the Australian car market's growth is the increasing demand for Sports Utility Vehicles (SUVs). SUVs have become the vehicle of choice for many Australian consumers, accounting for over half of all sales by volume. The preference for SUVs is driven by Australia's love for off-road driving and outdoor adventures, with sales of 4WDs and off-road vehicles increasing by 8% in 2024.
Additionally, the Australian car market is expected to benefit from the expanding Electric Vehicle (EV) sector. While EV sales experienced a decline in the first half of 2025, the market had rebounded impressively in 2023, with sales more than doubling. Government incentives, an expanding charging network, and new models from leading manufacturers are all contributing to the growing adoption of EVs in Australia.
The growth of the Australian car market is also supported by the country's over 3,700 new car and truck dealerships, ranging from small family-owned businesses to larger publicly owned companies. With a combination of online sales and traditional dealerships, the Australian car market is well-positioned to meet the growing demand and continue its projected growth trajectory.
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Frequently asked questions
There are over 3,700 new car and truck dealerships in Australia, with around 1,500 new car dealers operating over 3,000 dealerships.
It is unclear how many dealerships solely sell used cars. However, in 2023, 38.9% of used car sales were made through dealerships, with private sellers accounting for the remaining 61.1%.
Victoria has the largest share of car dealerships in Australia, with 24% of the market (3,613 companies). New South Wales is second with 3,497 car dealers (24%), and Queensland has 3,078 (21%). These three states combined account for 69% of the market share.
In 2023, more than 2 million used cars were sold in Australia. New car sales also broke records that year.
