Automotive distributors are reacting subduedly to a new record for vehicle sales in 2024. Consumers face a tough start to 2025 due to economic and political challenges.
The December VFACTS result showed that 95,895 new vehicles were sold in December, 2.7% less than the same period in 2023.
This resulted in 1,220,607 new vehicle sales for the year, an increase of 0.3% in 2024 and the best result yet recorded in Australia, according to the Federal Chamber of Automotive Industries (FCAI).
Toyota was the market leader with sales of 18,657 during December, followed by Ford(8305), Mazda (7256), Kia (6302) and Mitsubishi (5754).
The Toyota RAV4 was Australia’s top-selling vehicle with sales of 5119, followed by the Ford Ranger (4493), Toyota Hilux (3333), Toyota Prado (2687) and the Ford Everest (2476).
For the calendar year 2024, Toyota was the biggest-selling brand, with sales of 241,296 and a 19.8% market share. It was followed by Ford (100,170/8.2%), Mazda (95,987/7.9%), Kia (81,787/6.7%), and Mitsubishi (74,587/6.1%).
For December 2024, sales in the Australian Capital Territory were down 8.9% on December 2023 to 1221: New South Wales was down 1.7% to 28,200; Northern Territory was down 10.6% to 664; Queensland decreased 4.4% to 20,259; South Australia also reduced by 13.5%to 6175; Tasmania had a decrease of 11.5% to 1862; Victoria decreased by 2.7% to 26,755 and Western Australia increased by 9.2% to 10,759.
Lost momentum in the second half
FCAI chief executive Tony Weber says that while robust sales in the first half of 2024 set the full-year result, the market’s momentum was lost as the year progressed.
“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,” Weber says.
“Customers are also increasingly making choices regarding environmental outcomes and the associated total cost of ownership of moving to low emissions technologies.
“So, while the sales of battery-electric vehicles are lower than expected, this is partially offset by an increasing number of buyers turning to hybrid and plug-in hybrid models, which make up 14.1% and 1.9% of the total market, respectively.
“While overall consumer preferences remain clear with SUVs and Light Commercial vehicles continuing to dominate the market, especially the top ten sales, many cars in these segments are difficult or expensive to decarbonise. This will be a significant challenge in meeting the highly ambitious targets of the New Vehicle Efficiency Standard (NVES), which began on January 1, 2025.
“The industry is responding to NVES by increasing the range of zero and low-emission vehicles on offer. However, continuing customer buying preferences will inevitably lead to the accrual of substantial penalties under the Government’s new scheme, creating price inflation within the new vehicle market,” he says.
Weber says lower-than-expected sales results for battery electric vehicles were being
replicated in several major markets around the world.
“Governments around the world have set regulations that are ahead of available zero
emissions technologies, impacting both car makers and consumers,” Weber sats.
Manufacturers in the UK, Europe, and the USA are under pressure because they have made considerable investments to manufacture EVs. Still, customers are not buying them in the numbers needed to meet emission targets and provide a return on investment,” he says.
“In Australia, ideally, we will continue to see governments continue to invest in EV recharging infrastructure across the country. The Commonwealth Government should apply revenue raised through NVES penalties to recharging infrastructure. In addition, I urge the Commonwealth Government to support its emissions reduction policies by considering ongoing consumer support, such as continuing the FBT exemption for plug-in hybrid vehicles, which is due to end on April 1, 2025.
“If consumers do not want, cannot afford or cannot find new low emission vehicles that meet their needs, then no amount of effort from governments and car makers will make a difference,” he says.
While acknowledging the challenges ahead in 2025, Weber says that new car buyers could look forward to an increasing range of vehicles with advanced specifications and technologies.
Key points:
• The December 2024 market of 95,895 shows a decrease in new vehicle sales of 2649 (-2.7%) compared to December 2023 (98,544). There were 24 selling days in both December 2024 and December 2023, which resulted in a decrease of 110.4 vehicle sales per day in December 2024.
• The Passenger Vehicle Market is down by 2,240 vehicle sales (-13.8%) over the same month last year; the Sports Utility Market is up by 5,602 vehicle sales (10.7%); the Light Commercial Market is down by 5,811 vehicle sales (-22.7%) and the Heavy Commercial market is down by 200 vehicle sales (-4.6%) compared to December 2023.
• Toyota was the market leader in December, followed by Ford and Mazda. Toyota led Ford with a margin of 10,352 vehicle sales and 10.8 market share points.
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