New passenger motor vehicle sales in Australia - Data and Analysis (1995-2034)

IBISWorld estimates the number of new passenger motor vehicle sales to rise by 3.7% in 2026-27, to total 916,921 vehicle sales. This follows marginal growth in the previous year. Volatile petrol prices, linked to conflict in the Middle East, have sharpened consumer interest in vehicles that reduce exposure to fuel costs, as noted by the Federal Chamber of Automotive Industries (FCAI). Data from the FCAI shows that new vehicle sales reached 103,656 units in July 2026, the highest July result on record. A stronger Australian dollar has also lowered the landed cost of imported vehicles, supporting sales. However, the Reserve Bank of Australia (RBA) has raised the cash rate four times during 2026, to 4.60% in September and weaker consumer confidence is constraining growth, as higher borrowing costs weigh on vehicle finance and household budgets.The number of new passenger vehicle sales has climbed over the past five years. This rise is largely attributable to growth in the population aged over 18. Even so, volatile economic conditions have constrained consumer purchasing power, reducing the likelihood that they will purchase a new motor vehicle.The Australian passenger vehicle manufacturing industry ceased to exist in October 2017, after Holden and Toyota closed their respective domestic production facilities. Three years after Holden ended its production facility, its parent company, GM, retired the Holden Brand in 2021. GM stated high manufacturing costs and a small domestic market in Australia as the reasons for retiring the Holden brand.A growing portion of consumers have opted for SUVs over the past five years, with SUVs accounting for 65.7% of all new vehicle sales in August 2026, compared with 13.5% for passenger cars, according to the FCAI. This shift in consumer preference is driven by several factors. Many buyers are attracted to the increased interior space, versatility and higher seating position that SUVs provide, which offer enhanced comfort and safety for families and individuals. However, some consumers have opted to purchase small vehicles, which report lower fuel consumption, due to environmental concerns or to seek fuel cost savings. Electric vehicles (EVs) have rapidly captured a greater share of new vehicle sales. As reported by the FCAI, EVs accounted for 24.9% of new vehicle sales in August 2026, with sales up 171% from August 2025. Overall, IBISWorld estimates total new passenger motor vehicle sales to rise at a compound annual rate of 4.8% over the five years through 2026-27.