Average age of vehicle fleet in Australia - Data and Analysis (1995-2034)

The average age of registered vehicles is expected to rise by 0.8% in 2026-27, expanding to 11.9 years. Interest rates are likely to trend upwards or at least hold across 2026-27, as inflation remains targeted by the RBA. This is likely to translate into a decline in the motor vehicle price index through secondary effects. Potential cash rate hikes will stoke demand for the Australian Dollar from foreign investors. Added demand will support currency appreciation, increasing the purchasing power of the Australian Dollar and allowing imported cars to be procured at better cost prices. These lower prices are set to drive an expansion in the number of new passenger motor vehicle sales throughout the year. However, new car sales are not expected to be in excess of the replacement rate required for the average age of registered vehicles to decline, resulting in an expected growth in the fleet's age in 2026-27.A variety of different vehicle types are taken into account when calculating the average age of the vehicle fleet. New passenger vehicle sales are the most significant factor impacting the average age of registered vehicles in Australia, as passenger vehicles are expected to account for over 72.0% of total motor vehicles in 2026-27. Passenger vehicles' average age has exhibited the second-fastest increase in recent years, climbing by 7.1% between 2020-21 and 2024-25, putting upwards pressure on the age of registered vehicles in Australia. Only the average age of motorcycles has increased at a faster rate, with the average age increasing by 9.4% over the same period. This strong growth in passenger vehicle ages is expected to contribute to the average age of motor vehicles growing by a full year between 2020-21 and 2026-27. In comparison, the average age of the vehicle fleet grew by less than a year in the preceding decade. Growth in the age of the total fleet has been exacerbated by increases in the average ages of light commercial vehicles, articulated trucks and buses over the past five years. On the other hand, light rigid trucks and heavy rigid trucks, often used in freight transport, exhibited a decline in average age over the past five years. This trend is largely a secondary impact of the growth in demand for online shopping, causing freight and shipping requirements to expand significantly during the period. Overall, IBISWorld forecasts the average age of registered vehicles in Australia to increase at a compound annual rate of 1.6% over the five years through 2026-27.