Australia’s new vehicle market bounced back in July 2025, posting a 3.6% year-on-year (YoY) increase, with 103,097 vehicles sold, the strongest July result on record, according to VFACTS data. This rebound follows a weak May and a modest June, highlighting a clear upward trend in buyer sentiment and deliveries.
Let’s take a look at which parts of Australia accounted for what share of these impressive July 2025 new car sales. Growth was strongest in:
- Northern Territory: +10.6%
- Queensland: +8.9%
- Victoria, WA, and NSW also posted healthy gains
| State | July 25 (YoY%) | June 25(YoY%) | May 2025(YoY%) |
| Australian Capital Territory | 1,441 (+1.6%) | 1,687 | 1,413 (-15.5%) |
| New South Wales | 30,940 (+1.9%) | 36,887 | 32,177 (-2.9%) |
| Northern Territory | 1,047 (+10.6%) | 1,017 | 871 (-12.8%) |
| Queensland | 22,806 (+8.9%) | 27,592 | 22,924 (-2.6%) |
| South Australia | 6,824 (–1.4%) | 7,862 | 6,596 (-12.1%) |
| Tasmania | 1,548 (–1.0%) | 1,822 | 1,549 (-14.8%) |
| Victoria | 27,496 (+3.1%) | 32,747 | 28,671 (-4.7%) |
| Western Australia | 10,995 (+3.0%) | 12,895 | 11,084 (-10.1%) |
| Total | 103,097 (+3.6%) | 122,509 | 105,285 (-5.2%) |
July’s MoM dip raises questions
Despite the YoY improvement, July sales dropped sharply from June’s 122,509 units, indicating a potential cooling in demand.
- New South Wales, the country’s largest market for new cars, fell from 36,887 to 30,940 units.
- Victoria dropped from 32,747 to 27,496.
- Queensland declined from 27,592 to 22,806.
- South Australia, Tasmania, WA, and the ACT also saw softer results.
- The Northern Territory was the only region to record a Month-on-Month (MoM) increase, from 1,017 to 1,047 units.
This consistent MoM dip may reflect seasonal buying patterns, inventory fluctuations, or consumer caution due to cost-of-living pressures and interest rate uncertainty.
June’s impressive numbers may not reflect consumer preference alone. The End of Financial Year (EOFY) is traditionally a high-sales period in Australia, with dealerships offering aggressive discounts, bonus inclusions, and limited-time deals to clear stock. This could have prompted many buyers to seal the deal before July, thereby boosting sales figures across the board, especially for value-packed models such as the Chery Tiggo 4, GWM Haval H6, and MG HS.
Final thoughts
While July’s YoY gains paint a positive picture for the new vehicle market, the MoM decline raises questions about the sustainability of demand. EOFY incentives likely inflated June figures, making July’s softer numbers a natural correction. Still, the strong YoY growth, especially in key states, shows that demand remains resilient, even as economic uncertainty continues to loom. The next few months will reveal whether this rebound can turn into long-term momentum.
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