The Toyota Camry Hybrid has reclaimed its long-held title as Australia’s best-selling sedan, ending the Tesla Model 3’s three-year run at the top of the sales charts.
Figures published by the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council show Toyota delivered 9860 Camry sedans in 2025, compared to 6617 Tesla Model 3 electric cars.
Both models were hit by SUV shift
Despite Toyota’s win, sales of both vehicles declined sharply last year. Camry deliveries fell by 36 per cent, while Model 3 sales dropped by an even steeper 61 per cent, reflecting Australians’ continued move away from low-slung passenger cars and into SUVs.
The broader mid-size sedan category was down 41.1 percent in 2025, underlining the structural pressure facing the segment.
How Tesla took the lead and lost it
Tesla first overtook Toyota in 2022, when 10,877 Model 3s were sold, compared to the Camry’s then-record low of 9538 units, largely due to supply shortages.
The Model 3 extended its advantage in 2023 amid a surge in electric-car demand, with 17,347 sales versus 10,581 Camrys. That gap narrowed in 2024 following the launch of a new-generation Camry and a heavily updated Model 3, with sales of 15,401 and 17,094, respectively.
In 2025, however, Toyota reclaimed the crown as demand for mid-size sedans continued to weaken.
A long history of Camry dominance
Before Tesla’s breakthrough, the four-cylinder Toyota Camry was Australia’s best-selling ‘mid-size car’ for 28 consecutive years, after overtaking the Mitsubishi Magna in 1994 with 28,340 deliveries.
When V6 versions of each nameplate that were historically classified as ‘large cars’ are included, the Camry’s uninterrupted winning streak shortens to 24 years.
Tesla flags structural demand issues
While the Camry recorded its lowest sales on record in 2025, the Model 3 posted its weakest performance since 2020, a trend Tesla does not expect to reverse quickly. “The old model switched out last year in 2024. If we’re looking at year-on-year results, not to use the excuse, but we had a really strong start with deliveries of those new vehicles, partially impacted by some issues that we ran into last year, 2024.” Tesla Australia country director Thom Drew made this statement in an interview in mid-2025.
“There was a homologation concern that delayed deliveries, such that we had really big months, bigger than we should have, so that is having a larger impact on the current results year-on-year. That being said, though, demand in that segment, particularly for premium mid-size sedans, has continued to wane.”
Buyers migrate to SUVs
Drew added that many Tesla customers appear to be upgrading to the larger Model Y SUV, which recorded a 7.4 per cent increase in deliveries across 2025. The trend mirrors the wider Australian market, where SUVs continue to dominate sales growth at the expense of traditional passenger cars.
Mid-size sedan sales snapshot
Toyota’s Camry led a shrinking field in 2025, ahead of the Tesla Model 3, BYD Seal, and BMW 3 Series, as nearly every model in the segment recorded double-digit declines.
Despite the Camry’s return to the top, the data highlights a sobering reality for sedan buyers and manufacturers alike. Australia’s love affair with SUVs shows little sign of slowing.
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