The Australia passenger car market size reached USD 66.03 Billion in 2025. The market is expected to grow at a CAGR of 8.20% between 2026 and 2035, reaching almost USD 145.22 Billion by 2035.
Base Year
Historical Period
Forecast Period
According to FCAI, Australia's automotive industry recorded over a million new vehicles registration in 2022, with SUVs and light commercials making up 76.8% of sales, including eight of the top 10 vehicles. Electric cars constituted 3.1% of sales.
As per The Australian Electric Vehicle Association (AEVA) LTD, the ACT Government's Transition to Zero Emission Vehicles Action Plan saw 7,233 battery electric vehicle registrations by March 1, 2024.
The industry has been witnessing a steady increase in vehicle prices over the years.
Compound Annual Growth Rate
8.2%
Value in USD Billion
2026-2035
*this image is indicative*
Hybrid vehicles are driving the Australia passenger car market growth by combining internal combustion engines with electric motors, enhancing fuel efficiency and lowering consumption
Hybrid vehicles provide fuel efficiency by merging gasoline and electric power, lowering emissions for environmental advantages. They lead to cost savings, quiet operation, regenerative braking, improved resale value, and effective performance, promoting an eco-friendly image.
Electric cars bring environmental benefits through zero tailpipe emissions, decreasing air pollution and greenhouse gases. The Australia passenger car market developments are attributed to fuel savings technologies, government incentives, smooth performance, advanced technology, extended range, and quieter operation, enhancing driving experiences while supporting public health.
Renault launched the Renault Megane E-Tech in Australia, a blend of hatch and mini-SUV. It became the first purpose-built electric car offered by the renowned French manufacturer.
Australia Passenger Car Market Report and Forecast 2026-2035 offers a detailed analysis of the market based on the following segments:
Market Breakup by Vehicle Type
Market Breakup by Fuel Type
Market Breakup by Application
Market Breakup by Region
The Australia passenger car market key players are:
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The market was valued at USD 66.03 Billion in 2025.
The market is projected to grow at a CAGR of 8.20% between 2026 and 2035.
The revenue generated from the market is expected to reach USD 145.22 Billion in 2035.
The passenger car market is categorised according to the vehicle type, which includes compact SUVs, hatchbacks, SUVs, and sedans.
The key players are Toyota Motor Corporation Australia, Mercedes-Benz Australia/Pacific Pty Ltd., Ford Motor Company of Australia Pty Limited, Honda Australia Pty Ltd, and Nissan Motor Co. (Australia) Pty Ltd among others.
Based on the fuel type, the passenger car market is divided into diesel, hybrid, petrol and electric.
The market is broken down into New South Wales, Victoria, Queensland, Australian Capital Territory, Western Australia, and others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Vehicle Type |
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| Breakup by Fuel Type |
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| Breakup by Application |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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