Australia, the new player in the automotive transition
Long perceived as a country where the electromobility market lags behind Europe, China and the United States, Australia has seen a real acceleration in the adoption of electric mobility over the past two years. According to the monthly VFACTS report published by the FCAI (Federal Chamber of Automotive Industries) and theElectric Vehicle Council, September is a perfect illustration: more than 30% of new vehicle sales are now electrified (hybrid, plug-in hybrid or 100% electric).
This figure, unthinkable just a few years ago, brings the country closer to the standards of pioneering markets such as Norway and the UK, even if the recharging infrastructure is still lagging behind outside the major cities.
Change is not just technological. It’s also cultural. In a country where the ute (utility vehicle) and the 4X4 are king, it’s true that seeing Tesla Model Ys, BYD Sealion 7s and even Chery Tiggo 4s in the top-selling vehicle rankings reflects a real shift in usage.
Record figures
In September 2025, 106,891 new vehicles were registered, up 7% on 2024. Since January, the market has sold a total of 938,959 vehicles, putting 2025 on track to surpass the previous all-time record (1,220,607 units).
In a national context of inflation that is still perceptible, this dynamic performance can be explained by the overhaul of corporate fleets (+11.5%), the strength of the private customer channel and a revival in leasing (+8.5%). Conversely, government purchases fell by 13%.
Geographically, Victoria and Western Australia are the main drivers of this growth.
Manufacturers: Japanese dominance, Chinese breakthrough
The car market is still dominated by Toyota, Ford, Kia, Mazda and Hyundai, but the real revolution is coming from China. In September, no fewer than four Chinese brands made it into the top 12 vehicle sellers: BYD, GWM, MG and Chery. And the least we can say is that their growth rates are staggering: +178% for BYD, +172% for Chery, +30.1% for GWM and +4.4% for MG.
This growth is reflected in the appearance of three Chinese models in the top 10 best-selling vehicles in Australia, namely the Chery Tiggo 4 (6ᵉ), the BYD Sealion 7 (8ᵉ) and the GWM Haval Jolion (10ᵉ). They are therefore competing with local icons (Toyota HiLux, Ford Ranger, Isuzu D-Max). Tesla Model Y,
the third best-selling vehicle and the market’s number one SUV, is a good illustration of this shift towards new preferences.
This trend is not only reflected in sales figures, but also in import flows. Although Japan remains in first place as a country of origin of vehicles, with 26,590 units imported in September 2025, China, with 25,587 units, is now neck and neck. Thailand remains competitive with 20,996 vehicles imported in September 2025. China was ranked 3ᵉ in vehicle importing countries at mid-year with 102,938 deliveries, far behind Japan and its 187,078 deliveries. This evolving trend indicates that Beijing has a very strong chance of becoming Australia’s leading supplier of cars by the end of the year.
Electrification: accelerated change
The figures for the electrification of the Australian car fleet speak for themselves:
–12,076 battery electric vehicles (BEVs) sold in September, up 88% on September 2024.
–4,491 plug-in hybrids (PHEV), up 81% on September 2024.
–14,811 hybrids (HEV), a figure that confirms the role of this type of vehicle in this transition.
In total, electrified vehicles will account for 30.5% of the market, while pure petrol will account for less than 40%. This is a rapid rise, given that by 2021, the share of BEVs will be no more than 2%.
This growth can be explained by the multiplication of the range, the fall in average prices and the visibility given to electric models. But it is also due to the aggressive strategy of Chinese manufacturers, who are filling a gap left by European brands that are hesitant, too expensive or too upmarket.
A strong market but under pressure
There is every reason to believe that 2025 will be a record year for the Australian automotive industry. Yet beneath the surface, the situation is more fragile. All volume manufacturers are now resorting to massive discounting to clear their stocks, which is squeezing margins. Volume may be growing, but profitability remains under threat.
This phenomenon is not unique to Australia: in Europe and the United States, the price war on electric cars – initiated by Tesla and followed by BYD – has forced most brands to reduce their margins in order to remain competitive.
A month of change
September 2025 marks a strategic turning point for the Australian car industry. SUVs and utes continue to dominate, but electrification is now establishing itself as a player in its own right and, above all, as the industry’s growth driver. The arrival in force of Chinese brands is accelerating this transformation and reshuffling the cards in a market historically dominated by Japan and Korea.
These figures and facts confirm that Australia is no longer a market on the fringes of the global transition: it is becoming a country where tradition and modernity coexist.
