Number of motor vehicles in Australia - Data and Analysis (1982-2033)

The total number of registered motor vehicles is expected to increase by 2.1% over the 12 months to January 2026 to reach 22.7 million motor vehicles. 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 the willingness of these consumers 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 2026.The composition of the vehicle fleet has changed over the past five years as part of ongoing long-term trends. SUVs continue to grow in popularity accounting for just over 60.0% of all vehicle sales according to the latest data from VFACTS for July 2025. This is up from approximately 50.0% in 2021 and just over 20.0% in 2010. The perceived safety and comfort benefits of SUVs has seen them come to dominate new vehicle sales, largely at the expense of hatchback and sedans. Increasing concerns about the environment and cost-of-living, has seen car manufacturers gradually improve the fuel efficiency of SUVs and offer electric and hybrid models to maintain their popularity.Growth in the number of vehicles over the past five years has been primarily driven by SUVs and commercial vehicles, with new sales in other passenger vehicles falling 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 the pandemic and uncertain economic conditions, consumers and businesses have continued to expand vehicle ownership at much the same pace as they have done 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 2026.