A new record for vehicle sales in 2024 received subdued reaction from the industry as consumers face a tough start to 2025, caused by future product uncertainties, as well as economic and political challenges.

In early January, 2025, the Federal Chamber of Automotive Industries’ chief executive, Tony Weber, said that while very strong sales in the first half of 2024 set up a record full-year result, the momentum in the market was lost as the year progressed. 

The result of 1,220,607 new vehicle sales for the full year was an increase of 0.3 percent on 2024 and the best result ever recorded in Australia. However, the FCAI’s December VFACTS report showed that 95,895 new vehicles were sold during the month: 2.7 per cent lower than the same period in 2023.

Significantly, the sales of new utes fell dramatically in December: down by 22 percent on 2023 figures.

“The second half of the year showed a concerning trend, with sales in the private segment falling to very low levels, as interest rates and general cost of living pressures impacted Australian families,” Mr Weber said.

“While the sales of battery electric vehicles are lower than expected, this is offset to a degree by an increasing number of buyers turning to hybrid and plug-in hybrid models, which make up 14.1 per cent and 1.9 per cent of the total market respectively.”

(OTA makes the observation that the high numbers of utes in these figures are a direct result of successive Commonwealth Government tax incentives for ABN holders. Anyone with an ABN who doesn’t buy a crew-cab ute needs a new tax accountant, we reckon. Feedback from OTA website visitors shows that many are holding back on a new ute purchase until they read reviews of forthcoming hybrid utes in nearly 2025.) 

TOP SELLING NEW VEHICLES IN 2024

Ford Ranger   62,593

Toyota RAV4   58,718

Toyota HiLux   53,499

Isuzu D-Max   30,194

Mitsubishi Outlander  27,613

Ford Everest  26,494

Toyota Corolla  24,027

Mazda CX-5  22,835

MG ZS  22,629

Kia Sportage  22,210

Tesla Model Y  21,253

Hyundai Tucson  19,061

Mazda CX-3  18,461

Mitsubishi Triton  18,077

Isuzu MU-X  17,978

Nissan X-Trail  17,494

Source: Federal Chamber of Automotive Industries 

The FCAI mirrors the reluctance by most vehicle brands to adopt electrification, other than hybridisation, despite the fact that most Chinese brands are now FCAI members and strongly advocate fully electric vehicles, as well as hybrids. 

The FCAI has urged the Commonwealth Government to support its emissions reduction policies by considering ongoing consumer support, such as a continuation of the FBT exemption for plug-in hybrid vehicles which is due to end on 1st April 2025.