A market report into car sales so far in 2025 has shown the definitive trends and market shits occurring to the Australian car parc including the rise of China.
Fifth Quadrants latest report analysing sales data shows several continuing trends that have stood out in the monthly data including the rise of hybrids and the stalling of pure EVs.
It also notes that the surge of new Chinese brands that entered on the advent of the NVES have now consolidated market share and now have five of the top 20 positions in the market and a 26 per cent increase over last year.
“The rise of Chinese marques is no longer a trend, it’s a market shift, “ the report notes and says most of the sales are being driven by new models.”
The report argues the rapid rise of PHEVs, plug ins with an ICE motor, may have been driven by the tax exemption that ended on March 31 but hybrids as an alternative powertrain offering range and convenience continue to grow.
“With the FBT incentive now concluded, the question remains: will the market shift back toward EVs, or could we see a renewed focus on ICE vehicles as affordability and flexibility take priority?” the report asks.
BYD’s Shark 6 made a strong debut in quarter one, with 4,836 units sold YTD, placing it 4th in the ute segment, ahead of the Mitsubishi Triton (4,597) and Mazda BT-50 (3,868).
Future factors
The report also notes whether these trends continue in 2025 depends on a number of market factors and the appetite for new vehicles.
“Interest rate pressures are still present, and policy changes are beginning to bite, meaning the second quarter will be critical in determining whether 2025 continues the post-COVID growth trend or settles into a flatter pattern,” It says. “Much will depend on how consumers and businesses respond to tightening conditions, and whether emerging brands can maintain their momentum in a more challenging environment.”
The report lists the standout features of 2025;
- SUVs dominate as passenger cars decline: The market continues to shift toward SUVs (179,296 units sold in Q1 2025), while passenger vehicle sales dropped 22% year-on-year (41,902 vs 53,739).
- PHEVs surge ahead of FBT exemption deadline: Plug-in hybrid sales more than doubled YoY (8,694 vs 3,426), as buyers moved to beat the end of FBT exemptions in April.
- Chinese brands strengthen their foothold: GWM, MG, BYD, Chery, and LDV now hold five of the top 20 positions, a clear sign of the changing face of the market.
- Battery giants battle for market share: Tesla remains on its downward trajectory, while BYD has now reached 7th place, up from 17th a year ago.
- Heavy commercial loses momentum: Q1 sales in heavy commercial vehicles dropped 6.5% YoY, although still the third strongest Q1 performance in a decade (10,409)