Australia Car Market

Australia Car Market Overview:

The Australia car market size reached USD 21.30 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 23.45 Billion by 2033, exhibiting a growth rate (CAGR) of 1.00% during 2025-2033. The market is driven by rising demand for electric vehicles (EVs), SUVs, and connected car technologies, along with the growing environmental awareness, lifestyle trends, and technological innovation, reflecting a shift toward sustainability and smart mobility.

Australia Car Market Trends:

Rising Demand for Electric Vehicles (EVs)

The Australia car market share is witnessing an increase in the demand for EVs owing to the growing consumer awareness of environmental issues and the government's efforts to promote the deployment of ecofriendly modes of transport. The manufacturers are introducing new models with better battery efficiency and longer ranges, addressing the previous concerns related to limited usability. Subsidies, tax benefits, and rebates both from federal and state levels, are encouraging people to shift to EVs. Furthermore, EVs are becoming increasingly accessible to a wider audience, supported by the rapid expansion of charging infrastructure across the country. Investments by both private and public sectors are ensuring enhanced accessibility to the charging stations, making it easy for adoption. Moreover, luxury brands, such as Tesla, BMW, and Porsche are also finding a good market for high-end EVs, while affordable brands like BYD and MG are addressing budget-conscious buyers. This trend is directed according to global shifts toward sustainability, which guarantees continuous growth in the segment of EVs.

Growing Consumer Preference for SUVs

The Australia car market outlook is shaping the preference for SUVs, with consumers favoring spaciousness, versatility, and performance on diverse terrains. The households are generally active in outdoor pursuits and require an SUV for long road trips or camping. Car companies have introduced multiple models in the compact crossover segment up to luxury SUVs to cater the evolving demand. Hybrid and electric SUVs also are finding attention and popularity, where it blends the benefit of fuel efficiency with the benefits making SUVs popular. This trend is supported by the shift in designing, wherein modern SUV are improved giving better mileage, handling, and sophisticated safety features gaining attraction of urban buyers. The practicality of SUVs, combined with their stylish designs and rising affordability, is reinforcing their dominance in the market.

Advancements in Connected Car Technologies

Connected car technologies are playing a crucial role in the Australia car market growth. Features, such as real-time navigation, in-car entertainment, and vehicle-to-everything (V2X) communication, are becoming standard in new models that enhance the driving experience and safety. The carmakers are focusing on the knowledge in artificial intelligence (AI) and Internet of Things (IoT) to incorporate smart capabilities, such as predictive maintenance alerts and personalized driving settings. The demand for connected vehicles is also fuelled by a rising younger demographics, tech-savvy population that puts a premium on the seamless integration of digital technologies into daily lifestyle. Fleet operators and commercial vehicle owners are adopting connected systems to further optimize operations and reduce costs, which is accelerating demand for these technologies. Autonomous driving features remain another area of focus, semi-autonomous features, such as adaptive cruise control and lane-keeping assist are gaining attraction by the buyers. The growth of 5G networks across the country is connecting car technologies that deliver advanced services being the main driver in the market

Australia Car Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on vehicle, propulsion, sales channel, and end use.

Vehicle Insights:

• Hatchback
• Sedan
• SUV
• Sports Car
• Others

The report has provided a detailed breakup and analysis of the market based on the vehicle. This includes hatchback, sedan, SUV, sports car, and others.

Propulsion Insights:

• Gasoline
• Diesel
• Electric
• FCEV

The report has provided a detailed breakup and analysis of the market based on the propulsion. This includes gasoline, diesel, electric, and FCEV.

Sales Channel Insights:

• Peer-to-peer
• Franchised Dealer
• Independent Dealer

The report has provided a detailed breakup and analysis of the market based on the sales channel. This includes peer-to-peer, franchised dealer, and independent dealer.

End Use Insights:

• Commercial
• Ridesharing and Taxi Services
• Rental Car Services
• Corporate Fleet
• Individual

A detailed breakup and analysis of the market based on the end use has also been provided in the report. This includes commercial, ridesharing and taxi services, rental car services, corporate fleet, and individual.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Car Market News:

• In 2024, Toyota has introduced the full-size Tundra Limited pick-up to the Australian market. This model is built in the U.S. and remanufactured to right-hand drive by the Walkinshaw Automotive Group in Victoria.
• In 2024, Geely Automotive announced that will re-enter the Australian market in 2025 with the launch of its EX5 electric SUV, competing with Tesla, BYD, and others in the growing EV segment, offering advanced features like autonomous driving and a range of up to 530 km.

Australia Car Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia car market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia car market on the basis of vehicle?
• What is the breakup of the Australia car market on the basis of propulsion?
• What is the breakup of the Australia car market on the basis of sales channel?
• What is the breakup of the Australia car market on the basis of end use?
• What is the breakup of the Australia car market on the basis of region?
• What are the various stages in the value chain of the Australia car market? 
• What are the key driving factors and challenges in the Australia car market?
• What is the structure of the Australia car market and who are the key players?
• What is the degree of competition in the Australia car market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia car market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia car market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia car industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.