New vehicle registrations in Australia fell by 1.6% year-on-year (YoY) in May 2025, with 109,425 deliveries recorded compared to 111,245 in May 2024. Despite the softening market, it remains the second-best May on record for new car sales in Australia.
According to data from the Federal Chamber of Automotive Industries (FCAI), the decline marks the ninth drop in the past 12 months. However, things are looking up for electric vehicle (EV) sales with the Electric Vehicle Council (EVC) reporting the first YoY increase of 2025, climbing 10.4% to 10,065 units for the month.
Read More: Best-selling cars of April 2025.
Toyota HiLux outsells Ford Ranger, again
The monthly top spot for Australian car demand continues to be a battle between the utes, with the Toyota HiLux maintaining its position ahead of the Ford Ranger. Here’s the breakdown of the top 10 most popular new cars of May 2025:
| Model | May 2025 | May 2024 | Difference |
| Toyota HiLux | 4952 | 5055 | down 13.2% |
| Ford Ranger | 4761 | 5912 | down 19.5% |
| Toyota RAV4 | 4003 | 5517 | down 27.4% |
| Tesla Model Y | 3580 | 1609 | up 122.5% |
| Toyota LandCruiser | 3046 | 2578 | Up 18.2% |
| Toyota Prado | 2732 | — | up 2936% |
| Isuzu D-Max | 2643 | 2612 | up 1.2% |
| Ford Everest | 2369 | 2110 | up 12.3% |
| Mazda CX-5 | 2264 | 2108 | up 7.4% |
| Hyundai Kona | 1951 | 1842 | up 5.9% |
The top three have lost out when looking at the year-on-year sales for May 2024 and 2025, with the biggest decline registered by the Toyota RAV4. Meanwhile, most of the competition appears to have become more popular this past month, especially the Tesla Model Y electric SUV.
Tesla Model Y returns to form as EV demand recovers
The refreshed Tesla Model Y, i.e. Juniper, saw strong buyer interest in May 2025, moving 3580 units – its best monthly result since March 2024. It accounted for 91% of Tesla’s 3897 total sales this past month, which were up 9.4% year-on-year.
EVs made up 9.2% of total new vehicle sales in May, with over 10,000 units delivered – the first time this threshold has been crossed since March 2024.
New Entrants and Brand Movements
New brands emerge
Several new automotive brands appeared in the VFACTS reporting for the first time:
- Omoda Jaecoo: 310 deliveries
- Deepal: 67 deliveries
- GMC: 29 deliveries
FCAI joins call for end of Luxury Car Tax
According to the official release for the May 2025 sales, the FCAI is joined with the European Business Council and other Australian peak organisations in calling for a conclusion to a Free Trade Agreement with the European Union (EU). Such an agreement could be the end of the Luxury Car Tax as well as the 5% tariff imposed on vehicles from the EU.
The FCAI chief executive Tony Weber said, “Australia’s automotive sector strongly encourages all participants to deliver a trade outcome that is future-focused rather than prolonging outdated and inefficient policy arrangements, and one that allows Australians to share in world-leading mobility, safety and environmental technologies at the lowest possible prices.”
Outlook for the remainder of 2025
With 496,693 vehicles sold year-to-date, the market is down 3.2% from 2024’s 513,082 units at the same point. Although challenges remain, the resurgence in EV deliveries and new model introductions provide signs of resilience.
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