January 2025: Australian auto market is sluggish, but Chinese brands are growing against the trend by Asiautos Auto Parts(China Car Aftermarket Parts Expert)

Edited by Asiautos Auto Part

In January 2025, the Australian new car market fell back after reaching its peak in 2024, down 2.4% year-on-year to 87,625 units. This was the sixth decline in the past seven months, affected by factors such as the economic environment and port strikes. 

Fuel vehicle sales continued to fall, while hybrid and plug-in hybrid vehicles (PHEV) continued to grow, but pure electric vehicle (BEV) sales fell sharply, with market share falling from 5.8% in the same period last year to 4.4%. 

SUV models continued to dominate, accounting for more than 60% for the first time. Toyota is still in the lead, and Chinese brands such as Great Wall and Chery have performed well, while BYD and Tesla have seen a significant decline in sales. 

Let's conduct an in-depth analysis of the Australian car market this month to explore the performance of different powertrains, the sales rankings of various brands, and the market competition landscape.

01Australia January Auto Market Overview

● Overall performance of the Australian auto market11

◎ In January 2025, new car sales in Australia fell 2.4% year-on-year, with a total of 87,625 units sold, about 2,100 units less than the same period in 2024. The auto market has cooled, but it is still the third highest January sales in history, second only to 88,551 units in 2018.

The main reasons for the market decline include economic uncertainty, cautious consumer spending, and port strikes affecting new car deliveries. 

◎ From the perspective of purchasing groups, private consumer car purchases fell 7.4%, government purchases fell 3%, leasing company sales fell sharply by 18.6%, while commercial fleet purchases increased by 4.6%, showing that corporate customers still have strong demand for vehicles. 

● Powertrain trends11 The powertrain landscape of the Australian market is changing:

◎ Fuel vehicles continue to decline: Gasoline vehicle sales fell 8% year-on-year to 38,852 units, and diesel vehicle sales fell 12.3% to 25,372 units. 

◎ Hybrid electric vehicles (HEV) are growing rapidly: sales soared 51.1% year-on-year to 14,836 units, and the acceptance of models with higher fuel economy has increased. 

◎ The rise of plug-in hybrid electric vehicles (PHEV): sales increased 94.7% to 1,908 units, an astonishing growth rate. 

◎ BEV suffered a setback: sales plummeted 21.7% year-on-year to 3,832 units, and market share fell from 5.8% in January 2024 to 4.4%, which was a significant decrease compared to 9.5% in 2023. The decline in Australian consumers' acceptance of BEVs may be related to subsidy policies, slow development of charging infrastructure and falling oil prices. 

The market share of SUV models continued to expand, breaking through 60% for the first time to reach 60.8%. 

◎ Light commercial vehicle (pickup and truck) sales fell 10.5%,

◎ Passenger car sales fell 20.4%. 

This shows that Australian consumers still have a special liking for large-space, high-passability SUVs, while the traditional sedan market has further shrunk.

● Brand performance: Chinese brands grow against the trend

In terms of brand rankings,

◎ Toyota ranked first with a market share of 21%, and its sales increased by 2.9% year-on-year.

◎ Mazda, Ford, Kia and Mitsubishi followed closely behind.

◎ It is worth noting that Great Wall Motors (GWM) performed well in the Australian market, ranking 8th in January, creating its best ranking in history, and maintained a market share of 3.9%.

◎ In addition, Chery's sales soared 152%, ranking 13th with a market share of 2.1%, setting a record high in the Australian market.

◎ The sales of BYD (-48.5%) and Tesla (-33.2%) fell sharply, affected by the weak BEV market. BYD's sales data has not yet included the Shark 6 PHEV pickup truck that will be launched in February, and its subsequent performance is worth paying attention to.

In terms of the source of vehicle imports, China ranked third with sales of 12,839 vehicles, second only to Japan (30,443 vehicles) and Thailand (18,501 vehicles), down 0.5% year-on-year, but the influence of Chinese brands in the Australian market is still steadily increasing, especially the strong growth of brands such as Great Wall and Chery.

◎ Great Wall Motors: January sales of 3433 vehicles, market share of 3.90%, up 9.90% year-on-year. 

◎ MG: January sales of 3740 vehicles, market share of 4.30%, down 6.6% year-on-year. 

◎ Chery: January sales of 1837 vehicles, market share of 2.10%, up 152.00% year-on-year. 

◎ BYD: January sales of 675 vehicles, market share of 0.80%, down 48.5% year-on-year.

◎ Leapmotor: Sales volume in January was 22 units, with a market share of 0.00%, indicating the performance of a new entrant into the market.

02 Vehicle Sales and Market Competition

● From the sales volume of vehicle models:

◎ The sales champion in January is still Toyota RAV4, with sales up 129.6% year-on-year. This is the 7th consecutive month that RAV4 has won the championship, and it has been the best-selling vehicle in Australia for 8 times in the past 10 months. Although the final sales champion in 2025 has not yet been determined, RAV4 currently occupies a favorable position.

◎ The ranking of Ford Ranger (-10.4%) and Toyota Hilux (-19.3%) has declined, while the new generation Toyota Prado (+63.1%) has performed strongly and ranked fourth.

◎ In addition, Mitsubishi Outlander (+0.6%) returned to fifth place.

◎ SUV models such as Ford Everest (+42.8%), Kia Sportage (+9.7%) and Mazda CX-5 (+8.8%) also performed well.

◎ Isuzu D-Max (-17.9%) and the overall traditional pickup truck market declined, and consumers are shifting from pure commercial pickup trucks to SUV models that focus more on comfort and fuel economy.

● In terms of competition:

◎ In the Australian market, Japanese brands still dominate, and brands such as Toyota, Mazda, and Honda are still strong.

◎ However, the rise of Chinese brands is changing the market landscape. Brands such as Great Wall and Chery continue to increase their market share with their high cost-effectiveness and the advantages of SUV and pickup truck product lines.

Chinese brands still face challenges. The pure electric vehicle market has cooled, and brands such as BYD that mainly rely on BEV products have been impacted.

Consumers still need to establish long-term trust in Chinese brands, especially in after-sales service and brand premium. The traditional fuel vehicle market is still dominated by Japanese brands, and Chinese brands need to further strengthen their layout in the plug-in hybrid (PHEV) and SUV fields. 

With the launch of BYD Shark 6 PHEV pickup truck and Great Wall continuing to expand into the Australian market, Chinese brands are still expected to grab more market share in the fiercely competitive market.

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