Australian car buyers have shrugged off economic jitters, driving new vehicle sales to a July record, according to fresh VFACTS data released this week.
A total of 103,097 new vehicles hit the road last month – up 3.6 per cent compared to July 2024, signalling robust confidence in the auto market as 2025 unfolds. Federal Chamber of Automotive Industries chief executive Tony Weber hailed the result as a strong sign of returning optimism, citing a recent interest rate cut and expectations of further rate relief as key drivers.
“We are now seeing confidence return to the market, supported by a recent interest rate reduction and anticipation of further easing,” Mr Weber said.
“Consumers are responding with interest across most segments, particularly utes and SUVs.”
Plug-in hybrid electric vehicles (PHEVs) were the standout performers, with sales surging 183 per cent year-to-date. Mr Weber noted that more than 50 PHEV models are available this year, making them an increasingly appealing option, especially for Aussies in regional areas or those with limited charging infrastructure.
“They offer the ability to drive short distances on electric power while retaining the flexibility and range of a conventional engine,” he explained.
Despite growing EV options, all-electric sales have stalled below 8 percent of the market in 2025. Meanwhile, Aussies continue their love affair with SUVs, further outpacing traditional passenger cars. Passenger vehicle sales are down 27 percent so far this year.
“For every two passenger vehicles sold so far in 2025, about nine SUVs have been sold. In July, there was only one sedan in the top 20 models, the Toyota Corolla,” Mr Weber added.
In terms of brand performance, Toyota remained firmly on top in July with 21,722 sales, ahead of Mazda (7,452), Kia (7,402), Ford (7,279) and Hyundai (6,687).
Looking around the country, sales climbed in nearly every state and territory, led by the Northern Territory up a remarkable 10.6 percent. Queensland also saw brisk growth at 8.9 percent with more modest increases in New South Wales (1.9 per cent), Victoria (3.1 per cent), Western Australia (3 per cent) and the ACT (1.6 per cent). Only South Australia (-1.4 per cent) and Tasmania (-1 per cent) posted declines.
The latest figures highlight the resilience of Australian new car buyers and ongoing shifts in what they drive, with SUVs and plug-in hybrids leading the charge, even as full electric take-up slows.
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