Australian drivers have broken the record for new car sales by the slimmest of margins, figures revealed, with less than half a percentage point in the race.
But some vehicle types proved significantly more popular than others during 2024, and industry groups warned the market faced a tough road ahead amid changing laws and challenging economic conditions.
The Federal Chamber of Automotive Industries released figures on Monday that showed new vehicle sales fell for the fifth consecutive month in December, down by 2.7 per cent.
High vehicle sales recorded at the start of 2024 helped the market set an annual record, however, besting 2023 sales by 0.3 per cent or fewer than 4000 purchases.
Few brands within the industry would celebrate the milestone, FCAI chief executive Tony Weber said, as the data showed consumers were choosing to hold on to existing vehicles for longer.
“The second half of the year showed a concerning trend, with sales in the private segment falling to very low levels as interest rates and general cost of living pressures impacted Australian families,” he said.
Some vehicle types bucked the downward trend, however, with SUVs recording a 10 per cent sales boost in December and 2.4 per cent lift during the year, while hybrid vehicles recorded their highest sales to date.
Plug-in hybrid car sales doubled during 2024 to reach more than 23,000, while hybrid vehicle sales rose by 76 per cent to more than 172,000, besting their electric rivals.
Electric vehicle sales did pick up speed in December, however, with data from the FCAI and the Electric Vehicle Council showing motorists bought more than 8300 EVs during the month, representing a rise of 23 per cent and 8.3 per cent of the overall market.
Growth in electric vehicle sales remained steady in 2024, with data from both groups showing more than 91,000 sales during the year, up from more than 87,000 in 2023.
More electric vehicles are expected to arrive in Australia during the year after the federal government introduced the New Vehicle Efficiency Standard (NVES) in January that will set an emissions limit on each automaker’s fleet.
VW, MG, BYD, Zeekr, Hyundai and Kia are among brands expected to launch electric models in Australia in the coming months.
But many bigger SUVS and utes that Australians bought in large numbers could be “difficult or expensive to decarbonise,” Mr Weber said, and penalties issued to high-polluting vehicles could raise their prices.
“The industry is responding to the NVES by increasing the range of zero and low-emission vehicles on offer,” he said.
“If consumers do not want, cannot afford or cannot find new low-emission vehicles that meet their needs then no amount of effort from governments and car makers will make a difference.”
Perhaps surprisingly, the popularity of utes fell in December, sales figures showed, with light commercial vehicle sales down by 22 per cent.
Utes also made up just three of Australia’s 10 top-selling vehicles for the month, with the Ford Ranger, Toyota HiLux and Isuzu D-Max earning second, third and sixth place respectively.
Toyota’s hybrid RAV4 SUV claimed the top spot on the December list that was dominated by other SUVs, including the Ford Everest, Kia Sportage and Nissan X-Trail.
TOP SELLING NEW VEHICLES IN 2024
1. Toyota RAV4: 58,718
2. Ford Ranger: 57,960
3. Toyota HiLux: 45,839
4. Mitsubishi Outlander: 27,613
5. Ford Everest: 26,494
6. Isuzu D-Max: 24,031
7. Toyota Corolla: 24,027
8. Mazda CX-5: 22,835
9. MG ZS: 22,629
10. Kia Sportage: 22,210
Source: Federal Chamber of Automotive Industries
