Forecast for Australian Vehicle Sales in 2025: Toyota Remains Optimistic Amidst Rising Competition
In a significant forecast, Toyota Australia’s Chief Sales and Marketing Officer, Sean Hanley, anticipates a modest decline of approximately five percent in new vehicle sales across the nation in 2025. This projected dip is expected to cultivate heightened competition among automotive brands, alongside shorter wait times for vehicles and a resurgence in promotional discounts.
Despite the challenges posed by a wave of new entrants into the Australian automotive market—particularly from Chinese manufacturers—Hanley maintains that Toyota will sustain its status as the most sought-after brand in the country.
During a press event in Sydney today, commemorating Toyota’s impressive 28th consecutive year as the leading seller of new vehicles in Australia, Hanley informed the media that demand is likely to cool over the next year. Following a remarkable 2024, which saw total vehicle sales soar to 1,237,287, expectations for 2025 are set between 1.17 and 1.18 million units.
"The Australian new car market is notoriously competitive, and 2025 will continue that trend," Hanley remarked. "We anticipate more brands and models entering the fray, leading to greater choices and intensified competition—ultimately beneficial for consumers."
According to Hanley, while the market may see a slight easing from the record sales of 2024, this is primarily due to a more balanced supply-demand dynamic. He envisions a gradual return to a stable market landscape.
Current conditions carry multifaceted challenges for both established and emerging carmakers in Australia, where around 60 brands are presently in operation and an additional six are expected to debut in 2025. Key obstacles include the Australian government’s New Vehicle Efficiency Standard (NVES), rising living costs, and the impending federal election.
Hanley is optimistic that such pressures will catalyze increased competition among brands, ultimately resulting in lower vehicle prices.
"Every brand is navigating its own unique circumstances,” he explained. “With new entrants and the imperative to sell battery electric vehicles (BEVs) at scale, the market dynamics will undoubtedly become more intriguing."
Yet, Hanley affirmed Toyota’s commitment to ensuring quality sales and superior customer experiences.
Toyota’s record-breaking performance in 2024—achieving 241,296 sales—marked its 22nd consecutive year at the top of Australia’s new vehicle market, claiming a 19.5 percent market share. This achievement surpassed its previous record of 238,983 units set in 2008.
Despite the intensifying competition, Hanley is confident that Toyota has room for growth. "We project another robust year ahead, with sales anticipated to exceed 220,000 vehicles," he said. "Our order backlog remains strong, which fuels our optimism moving forward."
Hanley aspires for Toyota to reach a 20 percent market share, acknowledging a minor shortfall in 2024 but emphasizing the brand’s progress. "While such an achievement may not be immediately attainable in the next year, I firmly believe that within five years, Toyota will find itself in an advantageous position to reach that goal."
When asked about the keys to success for other brands in the Australian market, Hanley emphasized investment in strong products, dealer networks, and exemplary customer service. "Ultimately, it’s about service and instilling confidence in consumers," he noted.
"Toyota boasts over 260 dealerships nationwide, well-equipped to service and provide parts. If a customer encounters an issue—because no vehicle is without its faults—they can rely on a nearby Toyota dealer for assistance," he added.
"The critical question for consumers as new brands emerge will be: ‘Who’s there to support me if I encounter trouble?’"
Source:www.carexpert.com.au
