VFACTS 2023: Car industry breaks all-time sales record

More than 1.2 million new vehicles were sold in Australia in 2023, the highest-ever tally in a calendar year, as overseas supply lines improved and long-awaited customer orders were finally cleared.

A total of 1,216,780 vehicles were delivered during the year – up 12.5 per cent on last year and eclipsing the previous 1.189m benchmark set in 2017 – with Toyota reaffirming its position as the clear market leader for the 21st year in succession but losing out to Ford for bragging rights with Australia’s most popular vehicle.

That honour went to the Ford Ranger for the first time, with the Aussie-developed ute racking up 63,356 sales to end the seven-year reign of the Toyota HiLux (61,111).

It’s the first time in 28 years that a Ford model has topped the charts, with the EF Falcon last taking the title in 1995 with 81,366 sales against the VR/VS Holden Commodore’s 80,452.

For the overall industry, 2023 was a welcome reprieve from the crippling effects of COVID-19 and the havoc the pandemic has wreaked on overseas production and supply over the past few years.

Severe shipping delays were also caused by quarantine backlogs at almost all Australian arrival ports during the first half of last year, which once cleared contributed to a string of record monthly sales results.

An incredible six out of the seven months from May to November were all-time highs, while December’s 98,544-unit result (+12.1%) was 4300 short of the monthly record set in 2017.

Industry leaders are expecting supply to normalise further during 2024 as customer orders are fulfilled and demand eases amid ongoing inflationary pressures and challenging economic conditions in general.

So another record sales year is unlikely but a buoyant market is still expected, settling back to pre-COVID levels of around one million units per annum.

That should not, however, diminish significant moves in the market seen during 2023, including:

• EV sales rising rapidly, topping 87,000 units and accounting for 7.2 per cent of total industry sales;
• Electrified vehicle sales (EV, PHEV and hybrid) of close to 200,000 units for 16.2 per cent of all sales;
• Tesla entering the top 10 with Australia’s top-selling EVs, the Model Y and Model 3, achieving 46,000-plus sales combined;
• China overtaking Korea to become the third most popular country of origin, behind Japan and Thailand;
• Passenger car sales returning to growth as more affordable EV sedans and hatches are launched; and
• Unprecedented competition in the market as new brands and models make inroads and put Toyota and others on notice, with buyers showing a preparedness to switch allegiance.

Supply and demand is always at play in the final reading, but the Ford Ranger’s toppling of the Toyota HiLux as the most popular new car in Australia in 2023 is momentous.

The Thai-built, Australian-developed Ranger’s 63,356 sales marked a 33 per cent uptick on 2022 – when the changeover to the new-generation model impacted its result – and was based mainly on 4x4 sales (58,261).

For HiLux, which held sway in the 4x2 segment (12,116), its 61,111 combined 4x2 and 4x4 sales represented a five per cent drop from its record 64,391 deliveries in 2022.

In a year in which the Tesla Model Y threatened to take a podium position come December 31, the Isuzu D-MAX eventually took third place with an impressive 31,202 sales, making it a ute trifecta at the top of the charts in keeping with traditional buying patterns in the Aussie market.

A late rally saw the Toyota RAV4 move up to fourth position overall (29,627) to maintain its status as the top-selling SUV in Australia for the fourth consecutive year, followed closely by the budget-oriented MG ZS small SUV (29,258) and the Tesla Model Y (28,769) – easily the best-selling electric car Down Under.

The supply-crippled RAV4 was also the best-selling hybrid car with 25,666 units to its name.

As well as RAV4 and Model Y, the Mitsubishi Outlander (24,263), Mazda CX-5 (23,083) and Hyundai Tucson (21,224) – in seventh, eighth and ninth position respectively – underscored the popularity of Australia’s top-selling mid-size SUV segment, while the evergreen Toyota Prado rounded out the top 10 with 20,710 sales, leading the large SUV class for the 21st year in a row.

Notably, there were no traditional passenger cars among the top 10 models for the first time ever – the Hyundai i30 (20,626) was 11th and the Toyota Corolla (19,986) finished in 12th – leaving only SUVs and utes among the bestsellers.

It was a mixed year for the major car brands with some, including the market-leading Toyota, experiencing sales downturns due to production constraints and shipping delays.

Toyota chalked up more than 200,000 sales for the 19th year in a row, easily doubling the volume of its nearest competitor, but its 215,240 deliveries last year was a tale of two halves.

Although Toyota finished 2023 down 6.8 per cent compared to the previous year, with a weaker 17.7 per cent market share (down from 21.4%), the Japanese car-maker was among those to enjoy strong growth in the second half, netting a record 123,005 sales in that six-month period.

That’s up 33.4 per cent compared to the first half and an ominous sign for 2024 if the brand’s supply continues to improve.

Toyota’s second-half result was also more than any other brand managed for the full year, with Mazda in its accustomed second place on 100,008 sales (+4.5%) and Ford moving up from sixth to third with 87,800 units (+31.8%).

The Blue Oval owes everything to Ranger (63,356) and the related Everest SUV (15,071), which together accounted for 89.2 per cent of Ford’s total sales last year.

That saw Kia (76,120) slip to fourth place with a 2.8 per cent decline compared to 2022, but it was enough to hold sway against its Korean counterpart Hyundai, which was close behind on 75,183 sales (+2.5%).

Outside the top five, Mitsubishi (63,511) was left in sixth position, falling from fourth in 2022 with a 17.5 per cent downturn last year, while MG was solid in seventh, finding 58,346 buyers for another year of double-digit growth (+17.7%).

The remaining minor placings were very close and will be keenly fought between a handful of brands in the year ahead, but for 2023 it was Tesla in eighth (46,116, +135.4%), Subaru a mere two units behind in ninth (46,114, +28.0%) and Isuzu Ute holding onto a top-10 spot with another record result (45,341, +28.4%).

Volkswagen (43,821, +41.6%) is sure to move back up the charts this year, finishing 2023 just outside the main table, as will Nissan (39,376, +48.6%), which managed only 12th but, like VW, has momentum on its side. GWM also remains in the hunt, ending last year with 36,397 sales (+45.3%).

Tesla toppled Mercedes-Benz to claim prestige market leadership in 2023, with Benz (24,315, -9.3%) also deferring to BMW (26,184, +15.4%) last year. Audi was likewise on the rise (19,039, +29.2%), while record results were also turned in by Lexus (15,192, +114.3%) and Volvo (11,128, +3.9%).

Prominent supercar brands were typically strong last year – including Porsche (6052, +7.9%), Lamborghini (241, +39.6%), Ferrari (215, +5.9%) and Aston Martin (157, +18.9%) – while a variety of higher-volume newcomers also fared extremely well: BYD (12,438, +488.6%), Chery (5890), Cupra (3765, +238.9%), to name just three.

Buyer preference for SUVs continued to swell last year, with the high-riding wagons accounting for 55.8 per cent of all new-vehicle sales in Australia, followed by light commercials (mainly utes) on 22.5 per cent, passenger cars on 17.4 per cent and heavy commercials on 4.3 per cent.

All major categories recorded growth, however SUV sales surged 18.2 per cent as vast numbers were shifted in the individual SUV segments led by mid-size (268,480, +21.5%), small (174,481, +21.5%) and large (155,970, +11.0%) models.

Double-digit growth was also found with 4x4 pick-ups/cab-chassis (208,716, +11.8%) as well as full-size American pick-ups costing more than $100,000 (10,363, +21.4%), underscoring strong demand for medium/large dual-cab utes with large-displacement diesel and petrol combustion engines.

Across all segments, 588,622 petrol-engined vehicles were sold last year (+6.7%), followed by 379,512 oil-burners (+5.0%).

Offsetting that dominant buyer inclination were record sales of eco-friendly cars, namely battery-electric vehicles (87,212, +161.1%), plug-in hybrid electric vehicles (11,212, +88.8%) and the sought-after traditional hybrid cars, still the most popular alternative-fuel options with 98,439 units sold last year (+20.3%).

Of the latter, Toyota alone sold 72,815 petrol-electric cars, representing 74 per cent of hybrid vehicle sales across all brands as well as 31.5 per cent of Toyota’s overall sales.

Federal Chamber of Automotive Industries (FCAI) chief executive Tony Weber said the record-breaking result for 2023 underscores “the dynamic and competitive nature of Australia’s automotive landscape” – but warned of challenging times ahead in 2024.

“This extraordinary result is a testament to the adaptability and resilience of both industry players and consumers alike,” he said.

“Despite the supply chain disruptions faced in recent times, consumers now have greater access to a broad range of choices, fostering increased accessibility in the market.”

While calling for the federal government to introduce a long-awaited Fuel Efficiency Standard in 2024, Weber also emphasised the need for “availability and affordability of products across all market segments” – including utes – and said there was a mix of bright skies and darker clouds on the horizon.

“As we celebrate this historic achievement, we recognise that the automotive sector will face challenges in the coming months,” he said.

“Cost-of-living pressures and increased interest rates will impact the market, and we anticipate a challenging 2024.

“The FCAI will continue its work with governments and other industry stakeholders during 2024 to manage a broad range of issues ranging from emissions standards, environmental impacts, logistics and supply chains, taxation, vehicle safety, data use and recharging infrastructure.”

Top 10 brands in 2023:

Top 10 vehicles in 2023:

Top models for individual segments in 2023: