Consumer Insights
Uncover trends and behaviors shaping consumer choices today
Procurement Insights
Optimize your sourcing strategy with key market data
Industry Stats
Stay ahead with the latest trends and market analysis.
Explore Our Diverse Range Of Offerings
From detailed reports to experts services offered in 15+
Industry Domains
Add 2 More Reports For 20% off
Report Overview
The Australia automotive market was volumed at 1.29 Million Units in 2025. The market is expected to grow at a CAGR of 7.80% during the forecast period of 2026-2035 to reach a volume of 2.73 Million Units by 2035. One of the biggest market growth factors is the parallel expansion of public and private EV charging networks that are breaking down the traditional barriers to electric vehicle adoption.
Key Market Trends and Insights
- Electric vehicle adoption is accelerating in Australia, supported by government incentives, expanding charging infrastructure, and growing consumer demand for sustainable mobility.
- Increasing preference for SUVs and light commercial vehicles reshapes sales dynamics, driven by lifestyle changes and demand for versatile transport.
- Digital retailing and online vehicle marketplaces expand rapidly, enhancing price transparency and streamlined purchasing experiences nationwide.
Market Size & Forecast
- Market Size in 2025: 1.29 Million Units
- Projected Market Size in 2035: 2.73 Million Units
- CAGR from 2026 to 2035: 7.80%
The development of parallel public and private EV charging infrastructure is eliminating the traditional hurdles to electric car adoption, and it is gradually supporting the growth of the Australia automotive market. Additionally, government programs have been instrumental in laying down the infrastructure for charging throughout the country. For instance, the announcement of the Driving the Nation Fund's fast-charging corridor financing in April 2023. On top of that, NRMA's initiative to improve the road network between towns and cities in Australia came as an ideal complement to the fund's AUD 39.3 million grant for 117 national highways.
Meanwhile, private sector players in the Australia automotive industry are speeding up the expansion of their networks, thereby attracting commercial interest, involvement of OEMs, and investor attention. As a result, the EV environment becomes dependable and user-friendly, which in turn increases service availability and lessens the anxiety about the limited battery charge. For instance, Chargefox revealed its plan to install 4,000 new fast and ultra-rapid charging plugs in all states and territories by the end of 2025, which means not only locals but also holidaymakers will be able to enjoy greater flexibility.
2025
Base Year
2019-2025
Historical Period
2026-2035
Forecast Period
Compound Annual Growth Rate
7.8%
Value in Million Units
2026-2035
*this image is indicative*
Key Trends and Recent Developments
Continuous New-Product Rollouts Sustain Consumer Interest and Choice
The impetus for EV adoption is maintained by regularly releasing new electric and hybrid vehicles, which keep consumers interested and update the dealer lineup. For instance, the MG S6 EV, a mid-size electric SUV, was introduced in November 2025. In addition, it was approved for sale in Australia at the time of its debut. The new electric SUV, thus, competes with the popular petrol-powered SUVs while providing modern EV features. New models of electric cars are being released regularly from both established and new players in the industry, thus giving buyers the latest options, facilitating trade, insurance, and making the competitive environment more dynamic. These factors are all contributing to the continuous growth of the Australia automotive industry.
Electrified Mainstream Models Reach High-Volume Segments
The electrification of regular vehicle segments has been ramped up with the introduction of plug-in hybrid and electric variants in the most popular pickup and SUV models. In September 2024, Ford unveiled the global debut of the Ford Ranger PHEV, which features full Ranger towing and off-road capabilities combined with EV-only driving and hybrid flexibility. Buyers who previously opted for petrol or diesel pickups for their utility now have hybrid alternatives available, boosting the overall Australia automotive market penetration.
New Global Brands Expanding into Australia with Tailored Products
Major car manufacturers are introducing vehicles in the market that are tailored to local preferences, hence increasing competition and consumer choice. In March 2025, Geely Auto made its formal debut in Australia and New Zealand with the launch of the Geely EX5, a cutting-edge SUV made for ANZ consumers. This entry into the market not only gives more variety to the vehicle lineup apart from the major domestic brands but also pushes new players to come up with better features, prices, or EV offerings. As a result, consumers get the advantage of wider selections while competition drives innovation and value.
EV Specialist Retail Networks Are Expanding Regionally
As electric vehicle interest continues to rise, brands are expanding their physical stores to increase their customer reach throughout Australia. In January 2025, Polestar launched its first showroom in South Australia, which is the Polestar Adelaide Space run by a local dealer group. Locating the showroom at a closer distance to customers, giving easier access to test drives, face-to-face consultation, and service, in general, lessens the hurdles for EV buyers. Such expansions make switching from ICE vehicles less of a barrier; they contribute to the mainstreaming of EVs by providing customer convenience, brand visibility, and after-sales support outside the biggest metropolitan areas.
Competitive Disruption from Chinese-Made EVs Is Reshaping Brand Rankings
Many competitors have rapidly captured sizable shares of the industry and are completely disrupting the brand ranking in the Australia automotive market by introducing low-cost, feature-rich Chinese electric vehicles. For instance, in September 2025, the four Chinese brands BYD, GWM, MG, and Chery were on the top 10 national sales list for the first time. Their strong EV offerings, competitive pricing strategies, and a growing consumer willingness to consider lesser-known brands are the primary factors behind their rise. This action eventually accelerated the growth of the Australian industry by putting pressure on existing manufacturers to either improve their features or switch to electrified lineups sooner.
Australia Automotive Industry Segmentation
The EMR’s report titled “Australia Automotive Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Vehicle Type
- Passenger Cars
- Commercial Vehicles
Key Insight: The Australia automotive market scope comprises passenger cars and commercial vehicles, both segments influenced by changes in consumer preferences and the overall economy. Passenger cars that include sedans and hatchbacks are losing their appeal as the demand is moving towards SUVs and electrified options. Nevertheless, passenger cars continue to retain their relevance among urban commuters. Commercial vehicles ranging from light vans to heavy trucks are influenced by the demand of the logistics, construction, and mining sectors. Manufacturers like Toyota, Ford, and Mazda are producing new SUV variants to entice customers, while the electrification trend is impacting both segments, as some commercial vehicles are becoming hybrid and electric.
Market Breakup by Engine Type
- Electric Vehicle
- Hybrid Electric Vehicle
- Plug-in Hybrid Electric Vehicle
- Mild Hybrid Vehicle
- Natural Gas Vehicle
- Fuel Cell Electric Vehicle
- Diesel Vehicle
Key Insight: The Australia automotive market scope comprises electric vehicles (EV), hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), mild hybrid vehicles, natural gas vehicles (CNG), fuel cell electric vehicles (FCEV), and diesel vehicles. EV and PHEV adoption is expanding quickly with more model availability and consumer interest, although BEVs occasionally experience a drop in sales during a quarter. Hybrids are the most common electrified choice due to practical advantages in range and efficiency. Diesel remains important in heavy-duty applications. Mild hybrids and early FCECs, as exemplified by Toyota's planned hydrogen HiLux, reflect diversification efforts amid infrastructure developments.
Market Breakup by Region
- New South Wales
- Victoria
- Queensland
- Western Australia
- Australian Capital Territory
- Others
Key Insight: The Australia automotive market landscape is geographically distributed in New South Wales, Victoria, Queensland, Western Australia, the Australian Capital Territory, and other states. New South Wales, Australia’s largest vehicle market, leads in registration and EV fleet growth, including over 100,000 battery electric vehicles. Victoria and Queensland report significant increases in EV and hybrid adoption, supported by state-level incentives and expanding charging infrastructure. Western Australia and the Australian Capital Territory show emerging uptake trends as infrastructure and fleet electrification expand. Other regions contribute to nationwide diversification driven by commercial demand and policy influences.
Australia Automotive Market Share
By vehicle type, passenger cars witness notable growth, driven by the shift toward electrified mobility
Australia automotive market observes significant traction for passenger vehicles, mainly influenced by the transition to electrified mobility, along with a stronger consumer focus on sustainability and lower total cost of ownership. For example, at the Local Strategy event in Sydney, Australia, GAC announced in November 2025 that it would release three new models, including the AION V electric SUV and the M8 PHEV luxury MPV. The diversified lineup across pure electric and hybrid variants not only satisfies the changing preferences of clients but also leads to a higher penetration of green passenger cars in the long term.
Commercial vehicles represent a significant share of the Australia automotive market. Manufacturers are required to comply with tightening efficiency standards, driven largely by fleet operators’ decarbonization goals. As a result, electrification is gradually emerging as the primary solution, alongside the adoption of cleaner alternative fuels. A real-life example was the event in October 2025 when Australia Post unveiled a Mercedes-Benz eActros heavy-duty electric truck and, at the same time, signed a partnership agreement with Ampol for the integration of renewable diesel in its logistics operations, thus delivering a dual pathway of electric deployment and sustainable fuel integration to cut emissions in large commercial fleets.
By engine type, electric vehicles show robust growth supported by infrastructure upgrades and industry collaborations
Electric vehicles (EVs) lead the Australia automotive market in terms of engine type, as many of the manufacturers are supporting the improvements in infrastructure and collaboration across the industry that remove risks associated with new technologies for consumers. For instance, in October 2025, the energy retailer Amber Electric and the automaker BYD announced a warranty-backed vehicle-to-grid (V2G) trial whereby BYD will provide battery warranty coverage for 50 participating EVs. Amber Electric, BYD, and the Government of New South Wales jointly announced the initiative at the Australian V2G Innovation Center in North Ryde, Sydney. The site serves as a demonstration facility for BYD vehicles and is equipped with metal hydride batteries and high-power bidirectional charging technology supplied by Schneider Electric, Novonix, and Energetics.
On the contrary, plug-in hybrid electric vehicles (PHEVs) account for a significant share of the Australia automotive market revenue as consumers continue to seek flexible electrified solutions that provide an electric range together with the traditional internal combustion engine for reliability. In October 2025, GWM launched new PHEV models at its Melbourne Tech Day 2025 event and revealed the expansion plans of the dealership network across the country, thus showing that product portfolio expansion and market access are the main factors behind the growing popularity of PHEVs in Australia, especially among those buyers who want a safe transition to electrification with range confidence.
Purchase the Regional Overview for USD 1099
If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.
Purchase the Regional Overview for USD 1099
If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.
Australia Automotive Market Regional Analysis
By region, New South Wales is leading the market growth, driven by strong state-level policies and a tech-savvy consumer base
The Australia automotive industry observes notable growth in demand for electric vehicles in New South Wales as the region transitions to sustainable transport, largely due to the strong policies at the state level and a consumer base that is keen to adopt new mobility technologies. The region’s active participation in national vehicle-to-grid demonstrations highlights strong momentum behind electrified fleet deployment and the testing of next-generation powertrain technologies. Through experimental agreements, consumers learn new utility values about their electrified passenger and commercial cars.
The Western Australia automotive market growth is heavily influenced by the needs of the commercial freight sector and the push for decentralized electrification in the region. Local operators and solutions providers are rapidly adopting sustainable transport technologies to address these needs. For instance, while the nation's fleets are testing the use of heavy-duty electric trucks and the adoption of renewable fuels, similar eco-friendly trends are driving the proliferation of electrified trucks and vans in Western Australia’s mining and logistics sectors, thus deepening the regional transition to low-emission transport.
Competitive Landscape
With the growing demand for zero-emission mobility solutions, Australia automotive market players are strategizing to accelerate their electrification and infrastructure developments. Automakers are mainly looking at electric and hybrid car production ways, better ways to access charging points, and the creation of energy and mobility ecosystems. They want, through these opportunities, to facilitate customer experience and thus make it seamless for the masses to go for zero-emission vehicles.
Additionally, Australia automotive companies are coming up with sustainable transport solutions as a reaction to the ever-tightening regulatory standards and corporate decarbonization agendas. The different stakeholders involved are deliberating electric and alternatively fueled trucking, highly scalable production facilities, and the provision of service solutions meeting the needs of the fleets. They have been inspired by the urge for operations' carbon emissions reduction, improvement of the fuel efficiency, and the scaling up of zero-emission solutions adoption in the logistics and industrial transport segments, thereby propelling the Australia automotive market growth trajectory.
Volkswagen Group Australia Pty Ltd
Volkswagen Group Australia Pty Ltd is the local branch of the global Volkswagen Group, headquartered in Sydney, New South Wales. It was indigenously established in 1953. The company operates a large portfolio of passenger car brands and drives product and electrification growth, as well as dealer and aftersales facilities expansion to the national network.
Hyundai Motor Company Australia Pty Limited
Hyundai Motor Company Australia Pty Limited operates as a fully owned subsidiary of Hyundai Motor Company, which was established in 1986, with its head office located in Sydney, New South Wales, Australia. The company has positioned itself in the market by offering competitively priced passenger cars.
Ford Motor Company of Australia Pty Limited
Ford Motor Company of Australia Pty Limited is one of the longest-standing automobile manufacturers in the Australian market. It was established in 1925 and is located in Melbourne, Victoria. It is regarded as one of the most valuable participants in the Australia automotive market due to the dominance it has over the commercial vehicles market.
Toyota Motor Corporation Australia Limited
Toyota Motor Corporation Australia Limited is the local subsidiary of Toyota Motor Corporation, established in 1958, and has its headquarters based in Melbourne, Victoria. The organization has the most dominating passenger car brand offering and the highest rate of hybrid penetration, with its main focus being sustainability as well as cutting-edge powertrain technology.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the market include Volvo Car Australia Pty Ltd and RVDA Pty Ltd, among others.
Key Highlights of the Australia Automotive Market Report
- Historical performance and accurate forecasts through 2035, supported by robust market modelling, trend analysis, and demand-side assessment across alcoholic spritzer categories.
- Product innovation in electric vehicles, hybrid technologies, connected mobility features, and next-generation commercial vehicle platforms shaping the market.
- In-depth competitive landscape assessment entering major domestic and international automotive manufacturers, including evaluations of product strategy, electrification roadmap, partnerships, and actual positioning.
- A full-fledged regional analysis that captures the emerging growth pockets across Australia's states and territories with figure support on vehicle registrations, infrastructure development, and regional demand trends.
- An investment-driven market outlook backed by quantitative metrics on manufacturing capacity, developments in the supply chain, charging infrastructure expansion, and capital allocation by market participants.
Why Choose Expert Market Research?
- Trusted insights for the market, stemming from in-depth primary and secondary research, ensuring the data staying compatible with reality, validation, and applicability to all stakeholders in the industry.
- Actionable intelligence crafted to support sound and strategic capture of markets, expansion planning, benchmarking competition, and the evaluation of investments.
- Granular region-wise and product-wise analysis that reveals segmental performance within the Australia automotive market, technology adoption patterns, and shifting consumer preferences.
Call to Action
Explore the latest trends shaping the Australia automotive market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on Australia automotive market trends 2026.
More Insights on
Pricing Plans
Upto 15% Off
USD
-
$3999 $3599
-
$2499 $2249
-
$4999 $4249
-
$5999 $5099
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Looking for specific insights?
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
Key Questions Answered in the Report
The market is projected to grow at a CAGR of 7.80% between 2026 and 2035.
The market is categorised according to its vehicle type, which includes passenger cars, and commercial vehicles.
The key players in the market include Volkswagen Group Australia Pty Ltd, Hyundai Motor Company Australia Pty Limited, Ford Motor Company of Australia Pty Limited, Toyota Motor Corporation Australia Limited, Volvo Car Australia Pty Ltd, and RVDA Pty Ltd, among others.
Key strategies driving the market include expanding electric and hybrid model offerings, investing in charging infrastructure, localising global vehicles, forming mobility and energy partnerships, and strengthening dealer networks.
The market is categorised according to its engine type, which includes electric vehicle, hybrid electric vehicle, plug-in hybrid electric vehicle, mild hybrid vehicle, natural gas vehicle, fuel cell electric vehicle, and diesel vehicle.
Japan leads with a dominant share of 34%, amounting to USD 8.53 billion, followed by China with a 17.7% share totalling USD 4.42 billion, and Korea with a 13.2% share equating to USD 3.31 billion.
In 2025, the Australia automotive market reached an approximate volume of 1.29 Million Units.
Major challenges include high vehicle costs, uneven charging infrastructure, supply chain constraints, regulatory variation across states, and slower EV adoption in regional areas.
Report Summary
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Vehicle Type |
|
| Breakup by Engine Type |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
Single User License
One User
USD 3,999
USD 3,599
tax inclusive*
- All Segments
- Printing Restrictions
- PDF Delivered via Email
- Custom Report Layout
- Post Sales Analysts Support
- Periodic Updates
- Unlimited Prints
Datasheet
One User
USD 2,499
USD 2,249
tax inclusive*
- Selected Segments
- Printing Restrictions
- Excel Spreadsheet Delivered via Email
- Full Report
- Periodic Updates
- Post Sales Analysts Support
- Unlimited Prints
Five User License
Five User
USD 4,999
USD 4,249
tax inclusive*
- All Segments
- Five Prints Available
- PDF Delivered via Email
- Limited Free Customization
- Post Sales Analyst Support
- Custom Report Layout
- Periodic Updates
- Unlimited Prints
Corporate License
Unlimited Users
USD 5,999
USD 5,099
tax inclusive*
- All Segments
- Unlimited Prints Available
- PDF & Excel Delivery via Email
- Limited Free Customization
- Post Sales Analysts Support
- Discount On Next Update
- Custom Report Layout
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Bundle Type
Flash Bundle
20% OFF
Number of Reports: 3
Small Business Bundle
25% OFF
Number of Reports: 5
Growth Bundle
30% OFF
Number of Reports: 8
Enterprise Bundle
35% OFF
Number of Reports: 10
Overview
- Life Time Access
- Analyst Support Related to Report
- PDF Version of the Report
- Complimentary Excel Data Set
- Free Analyst Hours
- Complimentary Free 1 Month Subscription to Trade Data Base
- Complimentary One Month Subscription to Price Database (Chemicals only)
- Complimentary PPT Version of the Report
- Complimentary License Upgrade
- Complimentary Power BI Dashboards
- Life Time Access
- Analyst Support Related to Report
- PDF Version of the Report
- Complimentary Excel Data Set
- Free Analyst Hours - 50 Hours
- Complimentary Free 1 Month Subscription to Trade Data Base
- Complimentary One Month Subscription to Price Database (Chemicals only)
- Complimentary PPT Version of the Report
- Complimentary License Upgrade
- Complimentary Power BI Dashboards
- Life Time Access
- Analyst Support Related to Report
- PDF Version of the Report
- Complimentary Excel Data Set
- Free Analyst Hours - 80 Hours
- Complimentary Free 1 Month Subscription to Trade Data Base
- Complimentary One Month Subscription to Price Database (Chemicals only)
- Complimentary PPT Version of the Report
- Complimentary License Upgrade
- Complimentary Power BI Dashboards
- Life Time Access
- Analyst Support Related to Report
- PDF Version of the Report
- Complimentary Excel Data Set
- Free Analyst Hours - 100 Hours
- Complimentary Free 1 Month Subscription to Trade Data Base
- Complimentary One Month Subscription to Price Database (Chemicals only)
- Complimentary PPT Version of the Report
- Complimentary License Upgrade
- Complimentary Power BI Dashboards
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Number of Reports: 3
20%
tax inclusive*
- 3 Reports Included
- Life Time Acess
- Analyst Support Related to Report
- PDF Version of the Report
- Free 1 Month Subscription to Trade Data Base
- 1 Month Subscription to Price Database (Chemicals only)
- Complimentary Excel Data Set
- PPT Version of the Report
- Power BI Dashboards
- License Upgrade
- Free Analyst Hours
Small Business Bundle
Number of Reports: 5
25%
tax inclusive*
- 5 Reports Included
- Life Time Acess
- Analyst Support Related to Report
- PDF Version of the Report
- Complimentary Excel Data Set
- Free Analyst Hours - 50 Hours
- Free 1 Month Subscription to Trade Data Base
- 1 Month Subscription to Price Database (Chemicals only)
- Complimentary Excel Data Set
- PPT Version of the Report
- Power BI Dashboards
- License Upgrade
Growth Bundle
Number of Reports: 8
30%
tax inclusive*
- 8 Reports Included
- Life Time Acess
- Analyst Support Related to Report
- PDF Version of the Report
- Complimentary Excel Data Set
- Free Analyst Hours - 50 Hours
- Free 1 Month Subscription to Trade Data Base
- 1 Month Subscription to Price Database (Chemicals only)
- License Upgrade
- Free Analyst Hours - 80 Hours
- Power BI Dashboards
Enterprise Bundle
Number of Reports: 10
35%
tax inclusive*
- 10 Reports Included
- Life Time Acess
- Analyst Support Related to Report
- PDF Version of the Report
- Complimentary Excel Data Set
- Free Analyst Hours - 50 Hours
- Free 1 Month Subscription to Trade Data Base
- 1 Month Subscription to Price Database (Chemicals only)
- License Upgrade
- Power BI Dashboards
- Free Analyst Hours - 100 Hours
How To Order
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Strategic Solutions for Informed Decision-Making
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Share