VFACTS 2025: Another record year for new vehicle sales in Australia, but growth modest overall

There’s been an influx of new auto brands to Australia, but the overall new-vehicle market was up only modestly in 2025.

A total of 1,241,037 new vehicles were delivered last year, up just 0.3 per cent from 1,237,287 in 2024 – despite Australia’s population growing by around 1.5 per cent in 2025.

It’s the third year in a row the overall Australian auto market has grown, and comes despite some analysts predicting no growth in 2025.

Per data from the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council, electric vehicle (EV) deliveries totalled 103,269 units, up 13.1 per cent year over year. EVs therefore accounted for 8.3 per cent of all new vehicle deliveries in 2025.

In 2024, they accounted for 7.4 per cent of the overall market, or 91,292 deliveries overall.

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“The growth of battery electric vehicle market share has been anaemic, increasing by 1.1 percentage points over the past two years, well below earlier projections,” said FCAI chief executive Tony Weber.

He criticised the Australian Government’s New Vehicle Efficiency Standard (NVES), introduced last year, for failing to spur EV sales more.

“The NVES has provided policy certainty and has led to an increased availability of EVs in Australia. However, it has had little discernible effect on EV demand,” Mr Weber said.

“There is growing concern about what the impact of NVES will be on vehicle availability, affordability and consumer choice as the Government’s targets become more stringent.”