Australia's Vehicle Sales Hit One Million Mark, But Growth Slows in October

Australia's automotive market recorded a milestone in October 2024, with total year-to-date vehicle sales surpassing one million (1,025,621 units). However, the latest figures from the Federal Chamber of Automotive Industries (FCAI) reveal a decline in sales momentum, with 98,375 units sold in October—down 7.9% compared to the same month last year.

Despite October having more selling days (26.4 vs. 25.2), the monthly total still fell short by 8,434 units, translating to 512 fewer sales per day. The figures also exclude 1,464 Teslas and 130 Polestars, as both brands stopped reporting to VFACTS following disagreements with the FCAI on New Vehicle Efficiency Standards.

Pressure on Private Buyers and EV Sales

FCAI Chief Executive Tony Weber highlighted a drop in the private buyers’ segment, which declined by 14.2% in October and 17.2% in September, underscoring economic pressures facing Australian households. Battery electric vehicle (BEV) sales are also slowing, even with tax incentives such as the FBT concession aimed at promoting electric vehicle adoption.

Weber noted that while electric vehicles capture nearly half of the competitive medium passenger segment, they represent only 4% of total vehicle sales. Meanwhile, plug-in hybrid electric vehicles (PHEVs) are gaining ground in the SUV and light-commercial segments, previously dominated by petrol and diesel models. This growth highlights the Australian market’s increasing variety, offering consumers a wider range of vehicle types and fuel options.

Dominance of Conventional Engines

Despite the surge in alternative fuel options, traditional internal combustion engines still lead the market. Year-to-date sales show petrol vehicles at 43.3% (443,861 units), followed by diesel at 30.3% (310,837 units). Hybrid vehicles, while growing in popularity, remain third with 10.1% (144,071 units), ahead of BEVs at 6.4% (66,082 units), PHEVs at 1.8% (17,953 units), and hydrogen vehicles with just 10 units sold.

SUV Sales Lead the Market, But Show a Slight Dip

SUVs continue to be the best-selling category in Australia, accounting for 56,512 units in October—down 5.2% from last year. Medium SUVs remain the strongest within this segment, reaching 232,768 sales year-to-date. Overall, 577,077 SUVs have been sold in Australia in 2024, underscoring the segment’s enduring appeal among Australian consumers.

Looking Ahead to December

The Australian market's end-of-year performance will likely reflect the current trends. As competition intensifies and new models enter the market, the wide array of options may provide a boost to sales in the final months of 2024. Weber remains optimistic, noting, “It will be interesting to see how this translates to an increase in sales momentum in the run-up to the end-of-year result in December.”