Hybrid boom: New car sales in 2024

New car sales in 2024 started out strongly, resulting in a record number of new vehicles on the road – but only just: 1,237,848 to be exact, a slim 1.7% increase on 2024. 

As cost of living pressures and interest rates weighed down on Australian households, buyers hesitated to shell out the extra clams for new wheels as the year wore on. December saw 99,666 new vehicles sold, a bare 1.1% increase on the same month in 2024. 

Others opted to reduce running costs by going electric, or opted for plug-in electric hybrids (PHEVs) or unpluggable hybrid electric vehicles (HEVs). Battery electric sales accounted for 7.6% of new car sales in 2024, up from 7.2% in 2023 (91,853 units in total, up 5,634 vehicles).   

PHEV sales doubled from 11,212 units in 2023 to 23,163 in 2024, accounting for 2% of the market, while interest in hybrids increased 76% from 98,439 units in 2023 to 172,696 in 2024, accounting for 14% of the market. 

Many more went for familiar technology. Petrol SUVs and diesel-powered utes remained top picks for drivers in 2024, with 384,928 and 244,802 respectively rolling off showroom floors, accounting for 32% and 20% of the market respectively. 

The latest figures come from the Federal Chamber of Automotive Industries (FCAI) which collates new car sales figures from carmakers in Australia – with the exception of Tesla and Polestar, which split from the industry body in early 2024 after a stoush over a watering down of the New Vehicle Efficiency Standard. Their figures are now courtesy of the Electric Vehicle Council, which represents numerous stakeholders in the growing EV industry in Australia. 

Winners and losers 

While dual-cab utes and SUVs remain popular in Australia, looking at the top ten overall best-sellers, and the top performers in various segments, the numbers reveal a diverse range of standouts across all segments.    

Leading the charge were hybrid and electric vehicles, reflecting a continued shift in taste towards more sustainable and cheaper-to-run options. Toyota dominated in several key categories, bolstered by its strong hybrid line-up, while other brands like MG, Tesla, and Mazda cemented their positions with popular models. Here's a snapshot of the winners.

Top ten vehicles, 2024

Digging further into the numbers shows that electric and hybrid vehicles shone through in a number of segments. Toyota’s hybrid range outsold all other competitors in the small car and medium SUV segments, while its popular Hilux and Landcruiser helped nab the brand’s number one spot in the broader market. 

However, the Toyota Camry lost out to Tesla’s Model 3 in the medium car segment by some 1693 sales. The Kia Carnival proved the most popular people mover, while the Ford Everest grabbed the number one large SUV spot. 

Several vehicle models in Australia faced notable sales declines compared to the previous year, with the MG ZS dropping by 22.7% to 22,629 units, the Tesla Model Y falling by 26% to 21,253 units, and the Toyota Hilux decreasing by 12.5% to 53,499 units. The Isuzu D-Max also saw a decline of 3.2%, selling 30,194 units, while the Mazda CX-5 experienced a slight dip of 1.1%, with 22,835 units sold. 

Top passenger cars in each segment, 2024 

Top SUVs in each segment, 2024

Top utes and vans in each segment, 2024 

EV and hybrid ups and downs 

Battery electric vehicle sales slowed significantly after several years of rapid growth, contrasted by hybrids gaining significant traction. That said, there was still a slight increase, indicating continued appetite for zero emissions vehicles despite most states cancelling EV incentives. 

Tony Weber, chief executive of the FCAI, said of the increasing numbers of zero and low emissions vehicle sales: “Customers are also increasingly making choices regarding environmental outcomes and the associated total cost of ownership of moving to low emissions technologies. So, while the sales of battery electric vehicles are lower than expected, this is offset to a degree by an increasing number of buyers turning to hybrid and plug-in hybrid models which make up 14.1 per cent and 1.9 per cent of the total market respectively.” 

The Tesla Model 3 and Model Y

On the EV leaderboard, the Tesla Model Y unarguably retains the title of king of the electric hill, with stablemate the Tesla Model 3 hot on its heels. The MG4 and BYD Seal went head to head, with the former toughing it out for number three spot, while the Seal and Atto 3 took fourth and fifth place. 

Also notable was BMW’s performance in the EV stakes. In 2024, the premium German brand sold 7787 battery electric cars, with a total of 16 models on offer including six below the Luxury Car Tax (LCT) threshold. 

Top Ten EVs

Make and model	Unit sold
Tesla Model Y	21253
Tesla Model 3	17094
MG MG4	6934
BYD Seal	6393
BYD Atto 3	5751
BMW iX1	2618
Volvo EX30	2129
BYD Dolphin	2116
BMW i4	2062
Kia EV6	1785

Whether appetite for Tesla’s popular Model Y will resurge again in 2025 remains to be seen. Wraps are off the refreshed Juniper model design – the first and most significant update to the model since it was launched overseas in 2020. Design changes include a sleeker profile with front and rear light bars, and upgrades to match the 2024 Model 3, such as a rear touchscreen for back-seat passengers, ambient lighting, and improved cabin acoustics for a quieter ride.  

Surprise Chinese takeaways 

Another notable trend was the rise of Chinese automotive brands. BYD achieved a massive 64.5% sales increase, as it introduced the electric Seal sedan and the plug-in hybrid Sealion to join its electric Atto 3 compact SUV and Dolphin hatchback.  

Alongside a swathe of other newly arrived or soon to arrive Chinese brands, competition is set to heat up on the EV market in 2025. 

What else to expect in 2025 

In 2025, the Australian car industry will face growing pressure with the introduction of the New Vehicle Efficiency Standard (NVES), set to take effect in mid-2025. The standard aims to curb vehicle emissions, pushing carmakers to accelerate the rollout of low- and zero-emission vehicles.  

While some brands, like Tesla and BYD, are well-positioned, others reliant on petrol and diesel models, like Isuzu, may struggle to adapt.