Lexi Webster
Australians have shown a preference for utes and SUVs in recent years, with the Ford Ranger and Toyota Hilux being the most popular models. In 2024, the Toyota RAV4 was the top-selling medium SUV, with the Mitsubishi Outlander and Kia Sportage also performing well. The Toyota Corolla has also been a popular choice, named the best-selling car in the world in 2022. Hybrid and electric vehicles are becoming more prevalent in Australia, with Toyota leading the market in 2024, and brands like BYD, GWM, and MG bringing more affordable options.
| Characteristics | Values |
|---|---|
| Top-selling car model in 2024 | Toyota RAV4 |
| 2nd best-selling car model in 2024 | Mitsubishi Outlander |
| 3rd best-selling car model in 2024 | Mazda CX-5 |
| 4th best-selling car model in 2024 | Kia Sportage |
| 5th best-selling car model in 2024 | Tesla Model Y |
| Top-selling car model in April 2025 | Toyota HiLux |
| 2nd best-selling car model in April 2025 | Ford Ranger |
| 3rd best-selling car model in April 2025 | Toyota RAV4 |
| Top-selling car model in H1 2025 | Ford Ranger |
| 2nd best-selling car model in H1 2025 | Toyota Hilux |
| 3rd best-selling car model in H1 2025 | Toyota RAV4 |
| Best-selling car in the world in 2022 | Toyota Corolla |
| Top-selling car in Australia in 1982 | Ford Falcon |
| 2nd best-selling car in Australia in 1982 | Holden Commodore |
| 3rd best-selling car in Australia in 1982 | Mitsubishi Sigma |
| 4th best-selling car in Australia in 1982 | Ford Laser |
| 5th best-selling car in Australia in 1982 | Nissan Skyline |
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What You'll Learn
Popularity of SUVs and Utes
Australians have shown a clear preference for larger vehicles like SUVs and utes. In 2024, SUVs and utes dominated the top 10 list of the most popular new cars in Australia. The Ford Ranger, a ute, was the most popular new car in 2024, retaining its top spot from the previous year. Toyota's RAV4 SUV was the second most popular new vehicle. Overall, SUVs made up about 57% of all new vehicle purchases in 2024, with sales of this category increasing by 2.4% from the previous year.
The popularity of SUVs and utes in Australia can be attributed to various factors. One reason is the increased marketing of these vehicles by manufacturers, who have doubled their spend on advertising SUVs and utes over the past decade. Additionally, tax perks such as the instant asset write-off scheme have made these larger vehicles more appealing to Australian buyers. The flexibility offered by SUVs and utes is another factor in their popularity. Tony Weber, the chief executive of the Federal Chamber of Automotive Industries, notes that larger vehicles can "do the grocery run, carry the tools and tow the boat on the weekend".
While the demand for SUVs and utes in Australia has led to a flourishing market for these vehicles, there are also downsides to their popularity. The growing number of larger cars on Australian roads has raised concerns about increased risks to pedestrians and other drivers. Prof Stuart Newstead of the Monash University Accident Research Centre warns that the weight gap between SUVs and other cars or pedestrians can lead to a higher risk of serious injuries in the event of a collision.
Despite these concerns, the trend towards larger vehicles in Australia is likely to continue. Manufacturers are expected to release new models targeting the SUV and ute segments, with electric, hybrid, and traditional petrol and diesel options. The introduction of a fuel efficiency standard in Australia could, however, alter the vehicle preferences of Australian buyers, potentially leading to a shift towards more fuel-efficient options.
In summary, the popularity of SUVs and utes in Australia is driven by factors such as increased marketing, tax perks, and the perceived flexibility of these vehicles. While there are safety concerns associated with the dominance of larger cars, manufacturers continue to meet the demand for these segments, potentially shaping the Australian automotive landscape in the years to come.
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Electric vehicles
The Tesla Model Y was the top-selling EV in Australia in 2024, with 21,253 models sold, although sales slipped from the previous year. The BYD brand is also popular, with the BYD Sealion 6 and BYD Sealion 7 being notable entrants to the market, and the BYD Dolphin Essential being one of the first EVs to retail below $30k. Hyundai has also entered the market with its electric Kona, and its second-generation model is proving popular. The MG4 electric car has also entered the top five most popular small cars in Australia.
Other popular EVs in Australia include the BMW i4, the Polestar 2, and the Jaguar, which was unveiled at the Goodwood Festival in the UK. The Rimac Nevera R has also proven its performance credentials by beating the Koenigsegg in an automotive benchmark test.
While the upfront costs of EVs can be high, with a Tesla Model Y retailing at $58,900, consumers are still motivated to switch to electric due to climate concerns and the potential for reducing costs associated with fluctuating fuel prices.
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Hybrid vehicles
Hybrid and electric vehicles are becoming increasingly popular in Australia. Research by JP Morgan suggests that by 2025, hybrid cars will make up 23% of all vehicles sold worldwide. This shift is reflected in Australia, where electric vehicle sales saw a 4.7% increase in 2024 compared to 2023, with a 7.4% share of total industry sales.
Toyota is a dominant player in the hybrid vehicle market in Australia. The Toyota RAV4 is Australia's best-selling hybrid vehicle, with 23,956 sales reported in the first half of 2025, making up 99.7% of the nameplate's total sales. The RAV4 has been described as the ultimate family SUV, offering both functionality and extensive safety features. Toyota's other popular hybrid models include the Corolla, Corolla Cross, Camry, Kluger, and Yaris Cross. In 2024, Toyota's top five hybrid models accounted for a significant number of sales: RAV4 Hybrid (55,902), Corolla Hybrid (19,460), Camry Hybrid (14,475), Kluger Hybrid (8,212), and Yaris Cross Hybrid (7,870).
Other popular hybrid vehicles in Australia include the Mitsubishi Outlander PHEV, which is one of the first hybrid cars in the country, and the BYD Shark 6, which is on track to be Australia's best-selling plug-in hybrid in 2025. The Hyundai Tucson hybrid and the Tesla Model Y, Australia's favourite electric vehicle, are also gaining traction.
With the growing popularity of hybrid vehicles, manufacturers are introducing more models, providing Australian buyers with an increasing range of choices.
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Toyota's popularity
Toyota is a popular car manufacturer in Australia, with several models ranking among the country's best-selling vehicles. The brand's success in the Australian market can be attributed to various factors, including its ability to cater to diverse preferences and needs, its reputation for reliability and durability, and its effective marketing strategies.
One of the most prominent models contributing to Toyota's popularity in Australia is the Toyota Hilux. The Hilux is a versatile truck known for its off-roading capabilities and durability, making it a favourite among Australians seeking a vehicle that can handle the country's varied terrain. In 2024, it was the second-biggest selling vehicle in Australia, with 53,499 sales, and it has consistently been a top-seller for several years. The Hilux's popularity in Australia is so significant that it has earned the title of Australia's "toughest and most reliable dual-cab ute."
Another Toyota model that has gained a strong foothold in the Australian market is the Toyota Corolla. The Corolla has been recognised for its efficiency, practicality, and reliability, appealing to Australians seeking a dependable vehicle for their daily commute. In 2022, the Corolla was named the best-selling car worldwide, with 1.12 million total sales, and it continues to be a popular choice in Australia. In 2024, it was the top-selling small car in the country, with hybrid variants contributing significantly to its success.
Toyota has also found success in the Australian market with its Toyota RAV4 model. The RAV4 is a family-oriented SUV that offers a balance between functionality and safety. It has evolved to meet the changing needs of Australian families, and its extensive safety features, including the Toyota Safety Sense kit, have sealed its popularity. In 2024, the RAV4 was the dominant player in the medium SUV market segment, with 58,718 sales, and hybrid models accounting for a significant proportion of its sales.
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Ford's popularity
Ford Motor Company of Australia, also known as Ford Australia, has been a popular car brand in the country since its founding in 1925. The first Australian-built Ford was a Model T, launched in 1925, and the company's headquarters were established in Geelong, Victoria.
Ford Australia's early products were Model T cars assembled from complete knock-down kits provided by Ford of Canada. Over the years, Ford Australia introduced various models, with the Falcon becoming the best-known, produced from 1960 to 2016. In 1982, the Ford Falcon was the top-selling car in Australia, marking the first time in 22 years that Holden was knocked off its perch.
Ford's performance in Australia has been strong, with the company becoming the second-ranked auto brand in the country in 2024. Ford has also formed partnerships with various organisations, including Golf NSW and Queensland Rugby League, further solidifying its presence in the Australian market.
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Frequently asked questions
As of 2025, the Ford Ranger is the most popular car in Australia, with the Toyota Hilux and RAV4 close behind. Other popular cars include the Mitsubishi Outlander, Mazda CX-5, and Kia Sportage.
Medium SUVs are the biggest market segment in Australia, with utes and small SUVs also being popular.
The Tesla Model Y was the top-selling electric vehicle in Australia in 2024, although sales slipped that year. The Toyota Corolla was the world's best-selling car in 2022 and is one of the most popular electric cars in Australia.
