Lexi Webster
May car sales in Australia have fluctuated in recent years, with a mix of increases and decreases across different regions and vehicle types. In May 2025, new vehicle sales decreased by 5.2% compared to May 2024, with a decline in passenger vehicle sales but an increase in sports utility vehicles. Electric car sales saw a resurgence, with a 9.4% increase in Tesla deliveries, contributing to the overall dip in new-car sales. Toyota maintained its market leadership, with the Toyota HiLux as the top-selling vehicle. In contrast, May 2024 recorded a 5.1% increase in new vehicle sales compared to the previous year, with growth across most segments. May 2022 saw a different trend, with a 6.4% decline in new vehicle sales, attributed to supply issues. Despite these fluctuations, SUVs have consistently been a popular choice, with sales volume growing year-over-year.
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What You'll Learn
Electric car sales up
While overall new-vehicle sales in Australia declined in May 2025, electric car sales bucked the trend and rose. This was the first year-on-year increase in electric car sales in 2025.
The rise in electric car sales was driven by a resurgence in Tesla deliveries, which were up 9.4% year-on-year. This was thanks to the arrival of the updated Model Y SUV, which accounted for 91% of Tesla's total sales. The Model Y placed fourth overall for the month, its best result since March 2024.
Sales of hybrid cars also grew 5.5% in May 2025 compared to the same month in 2024, and are up 18.3% year-to-date. Plug-in hybrid PHEV sales were up 117.6% in May 2025 compared to May 2024, but they have more than halved compared to just two months prior due to the end of the Fringe Benefits Tax exemption.
SUVs continued to lead the market, with sales volume growing to 60.4% of all new vehicles sold in Australia in the year to May, up from 55.8% in 2024.
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Toyota sales figures
In May 2025, Toyota sold 23,576 vehicles in Australia, making it the market leader. This figure is up 0.8% from the previous year and accounts for more than one in four new cars sold. The Toyota HiLux was Australia's top-selling vehicle, with 4,952 sales, followed by the Ford Ranger (4,761) and the Toyota RAV4 (4,003). The Toyota Landcruiser and Toyota Prado also made it into the top five, with 3,046 and 2,732 sales, respectively.
Toyota has been Australia's top-selling vehicle brand for 22 consecutive years. In 2024, it sold 23,389 vehicles in Australia during May, its highest monthly sales total since December 2020. This figure represented a 40.8% increase compared to the same period in the previous year.
Toyota set a new benchmark for hybrid sales in Australia in 2024, delivering more than 100,000 for the first time, up 64% from 2023. The RAV4 mid-size SUV was responsible for most of the brand's overall growth that year, with deliveries up 98% year-on-year, totalling 58,718.
Toyota Australia Vice President of Sales, Marketing, and Franchise Operations, Sean Hanley, predicted that the company could sell around 220,000 vehicles in Australia in 2025. He attributed this to a "better alignment" of supply and demand, particularly for hybrid variants.
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Sales by state
In May 2025, new vehicle sales in Australia decreased by 5.2% compared to May 2024, with 105,285 units sold. This decrease was observed across all states and territories except for the Australian Capital Territory, which saw a 10.6% increase in sales, with 1,673 vehicles sold.
New South Wales, the state with the highest sales volume, experienced a 2.9% decrease, selling 32,177 vehicles in May 2025. Queensland, the second-highest seller, saw a slight decline of 2.6%, with 22,924 units sold. Victoria, the third-largest market, recorded a 4.7% drop, selling 28,671 vehicles.
South Australia and Tasmania also witnessed notable decreases of 12.1% and 14.8%, respectively, with sales figures of 6,596 and 1,549. Western Australia's sales declined by 10.1%, totalling 11,084 units, while the Northern Territory experienced an even more substantial drop of 12.8%, selling 871 vehicles.
Despite the overall decline in May 2025 sales compared to the previous year, it is worth noting that the Australian car industry faced significant supply shortages, which appear to have started easing. The sales figures also represent a complex interplay between various factors, including consumer preferences, economic conditions, and the performance of individual brands and their models.
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SUVs vs passenger cars
SUVs are dominating the new car market in Australia. In May 2025, SUVs once again led the market, with sales volume growing to 60.4% of all new vehicles sold in Australia, compared to 55.8% in 2024. This is despite the fact that SUVs are generally more expensive to buy and run than their passenger car counterparts.
SUVs are distinguished by being high and squarish, with a wagon body style and elevated ride height. They are usually four-wheel drives or all-wheel drives. Standard passenger cars, on the other hand, sit closer to the ground, are usually lighter, and are less likely to kill or seriously injure pedestrians and cyclists.
There are several reasons why SUVs have become so popular in Australia. Firstly, they offer more headroom, legroom, and storage space than passenger cars, which is attractive to buyers. Additionally, SUVs are often marketed as having better capabilities for driving on bad roads, which may be appealing to Australian buyers given the country's varied terrain.
Another factor contributing to the popularity of SUVs is the rise in novated leasing, which allows buyers to choose their vehicle as part of their salary package rather than being limited to a specific model. The equalisation of tax breaks for 4x2 SUVs also made these vehicles more affordable for buyers, increasing their popularity.
The shift towards SUVs has had a negative impact on the environment, with Australia's National Transport Commission warning that the increase in sales of SUVs is "tempering Australia's improvement in transport emissions". Additionally, SUVs are more likely to kill the occupants of standard cars in the event of a crash due to their height, a phenomenon known as "incompatibility".
Despite the decline in sales of passenger cars, some automotive brands continue to perform well in this segment. For example, in May 2025, the Mazda3 small car was the second-best-selling vehicle in Australia, after the Toyota HiLux.
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Hybrid car sales
In the first quarter of 2025, the number of plug-in hybrids sold nearly doubled to 13,698, accounting for 4.81% of the market, compared to 7,556 sales (2.63% of the market) in the final quarter of 2024. Conventional hybrid vehicle sales also increased during the same period, from 42,618 to 46,115.
This trend continued into May 2025, with hybrid car sales growing by 5.5% compared to May 2024 (17,089 vs. 16,197). Year-to-date, hybrid car sales were up by 18.3% (78,391 vs. 66,277). Notably, plug-in hybrid sales surged by 117.6% in May 2025, with 3,081 vehicles sold, despite a decline in sales in the previous two months due to the end of the Fringe Benefits Tax exemption.
The rise in hybrid car sales can be attributed to several factors, including their cost-effectiveness compared to electric vehicles and their ability to reduce fuel costs and decrease emissions. Hybrids offer improved fuel economy and increased performance, without the range limitations associated with electric vehicles.
In terms of specific models, the Toyota RAV4 is expected to receive a plug-in hybrid option when it is released in Australia next year. The MG3 Hybrid+ is also worth mentioning, as it offers a fun, efficient hatchback experience with modern technology and smooth hybrid performance at a more affordable price point.
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Frequently asked questions
The best-selling cars in May 2025 were the Toyota HiLux, Ford Ranger, and Toyota RAV4.
The Toyota HiLux sold 4,952 units, the Ford Ranger sold 4,761 units, and the Toyota RAV4 sold 4,003 units.
May 2025 saw a decrease in new vehicle sales of 5.2% compared to May 2024, with 105,285 sales compared to 111,099 in 2024.
Electric car sales saw a 1.6% dip in May 2025, with 109,425 deliveries. However, this was the first year-on-year increase in electric car sales in 2025.
