Number of motor vehicles in Australia - Data and Analysis (1982-2034)

The total number of registered motor vehicles is expected to increase by 2.0% over the 12 months to January 2027, reaching 23.2 million. Growth in the number of motor vehicles typically correlates with population growth, as most people aged 18 and older prefer a motor vehicle for transport. However, spending power and sentiment affect these consumers' willingness to invest in vehicles. Furthermore, this is augmented by growth in the domestic freight task, which tends to increase demand for commercial road vehicles used for deliveries. These factors can be offset by rising fuel costs and the availability and affordability of substitutes like rail freight and public transport. Improvements in consumer sentiment and real household discretionary income, as well as growth in domestic freight task, are all expected to contribute to growth in the number of motor vehicles outpacing population in the year to January 2027.The composition of the vehicle fleet has changed over the past five years in line with ongoing long-term trends. SUVs continue to grow in popularity, accounting for just over 60.0% of all vehicle sales, according to the latest VFACTS data for August 2026. This is up from approximately 50.0% in 2021 and just over 20.0% in 2010. The perceived safety and comfort benefits of SUVs have led to their dominance in new vehicle sales, largely at the expense of hatchbacks and sedans. Growing concerns about the environment and the cost of living have led car manufacturers to gradually improve the fuel efficiency of SUVs and offer electric and hybrid models to maintain their popularity. Electric cars in particular have surged in popularity, especially in calendar year 2026. The onset of the Iran-Israel-US conflict in the Middle East, which created fuel shortages, sparked a flurry of sales for the category.Growth in the number of vehicles over the past five years has been primarily driven by SUVs and commercial vehicles, while new sales of other passenger vehicles fell between 2021 and 2025. Growth in online shopping and the increasing popularity of utility vehicles used for everyday needs have contributed to the substantial increase in light rigid trucks and commercial vehicles. Non-freight carrying vehicles have also grown strongly over the period. These vehicles are fitted for particular purposes, like ambulances and fire trucks. Meanwhile, consumers have continued to switch to SUVs over sedans and hatchbacks, driving growth.Growth in the number of motor vehicles has remained relatively in line with long-term trends over the past five years. Despite disruptions driven by uncertain economic conditions and supply disruptions, consumers and businesses have continued to expand vehicle ownership at much the same pace as they have for decades. Overall, IBISWorld forecasts the number of motor vehicles registered to increase at a compound annual rate of 2.3% over the five years through January 2027.