VFACTS May: Toyota hybrids drive Aussie car market to new heights

Toyota hybrid and diesel models are pushing new-vehicle sales in Australia to unprecedented heights as the market-leading Japanese brand and some of its key rivals make up lost ground with improved supplies of their most popular models.

As Toyota Australia announced today that it was shifting to a hybrid-only range for nine models, including the nation’s best-selling SUV, the RAV4, VFACTS figures released by the Federal Chamber of Automotive Industries (FCAI) show that a seventh successive record monthly result was achieved in May.

Based on data from most car brands operating in our market, 111,099 new vehicles were sold in Australia last month, up 5.1 per cent on May last year (and the previous record mark) to take the overall market to 512,753 sales for the year to date.

That’s a rise of 12.2 per cent YTD and puts the industry on track for an all-time-record calendar year of more than 1.3 million units.

Of that overall total, Toyota alone has racked up a phenomenal 100,398 of them, cracking the 100K mark in five months for the first time since 2008 to push the brand’s sales up by 40.8 per cent YTD.

What’s more, Toyota’s hybrid sales have more than doubled this year to 46,821 vehicles, now accounting for 46.6 per cent across its sprawling range and, strikingly, 70.5 per cent of all hybrid vehicles sold across all brands (66,437, +126.8%).

The trend is clear – just as it is with EVs surging forward on 40,636 sales YTD (+26.8%) – but it’s a bold move for Toyota to now start discontinuing non-electrified petrol models en masse, which are still the most popular vehicle type by a country mile.

Petrol currently accounts for 45.2 per cent (222,368) of all new vehicle sales in Australia this year (excluding heavy commercials) compared to diesel on 31.9 per cent (156,941) and hybrids on 13.5 per cent. EVs make up 8.3 per cent and plug-in hybrids just 1.2 per cent (6099).

Toyota’s move alone, combined with the incoming New Vehicle Efficiency Standard (NVES), will put downward pressure on petrol vehicle sales, but there’s still a long road ahead before EVs and hybrids dominate.

Toyota posted 23,389 sales last month (+27.5%) for its best result since December 2020, with four models placed among the top 10 best-sellers – HiLux (second, 5702), RAV4 (third, 5517), Camry (sixth, 2468) and Corolla (seventh, 2439).

Ford maintained bragging rights with the Ranger ute at the top of the pile on 5912 sales in May – extending its lead over HiLux to 4357 units YTD (27,242 v 22,885) – and together with Everest in eighth position on the charts (2110) the Blue Oval brand held second spot overall with 8806 sales (+40.9%).

Mazda, which is more accustomed to being in second position, remained in third on 8002 units (-5.6%), banking on CX-5 (ninth overall, 2108) and CX-3 (the top-selling light SUV, 1300) to help keep other rivals at bay.

Kia was solid in fourth place last month (7504, +7.2%), ahead of its flatlining fellow Korean brand Hyundai in fifth (6495, -8.2%), with Mitsubishi closing fast (6409, +39.8%) and holding a lead over Hyundai in YTD terms (see table below). Outlander remains the triple-diamond brand’s top-seller (2500 in May) as the new Triton beds in (1405).

Isuzu Ute held onto seventh place in May (4401, +26.4%) and for the year to date, while the final three positions on the top 10 table were occupied by brands selling only Chinese-built cars – MG (4159, -13,9%), a strong-performing GWM (3820, +17.9%) and Tesla (3567, -20.3%).

The double-digit declines for both MG and Tesla are notable, explained not only by customer deliveries hinging on shipping schedules but an increasingly competitive marketplace that’s luring buyers into rivals’ showrooms and forcing these two brands into significant discounting.

For the record, Tesla sold 1609 examples of the electric Model Y SUV last month (-49.4%) but found better returns with the Model 3 sedan (1958, +50.8%), while MG is still relying heavily on cut-price older models – the MG3 city car (1077) and ZS SUV (1841) – for its volume, rather than newer cars like the excellent MG4 electric hatch (565).

Those figures contrast with the fast-growing BYD’s record sales in May. The Chinese brand found 1914 buyers for the month (+32.2%), including 1002 jumping into the Model 3-rivalling BYD Seal and 737 drawn to the Atto 3 small SUV.

Big-name brands left outside the top 10 last month include Nissan (3425, +11.0%), Subaru (3401, -4.6%) and Volkswagen (3362, -14.7%) – more mixed results that show the rollercoaster ride that many brands are still on.

At the top end of town, BMW (2577, +10.6%) continued to draw ahead of Mercedes-Benz Cars (2122, -12.2%), while Polestar, which no longer reports its sales through the FCAI, delivered 146 Polestar 2 EVs to customers.

SUVs remain the new vehicle of choice for Australian buyers, with more than one in every two purchases (53.8 per cent) made in this category in May. That’s equivalent to 59,737 sales, most coming from the mid-size SUV segment (24,344, +2.9%).

In comparison, light commercial vehicles accounted for 22.8 per cent (25,317) of total industry sales last month – diesel-powered 4x4 utes being the driving force (19,140, +11.0%) – while passenger cars made up 19.1 per cent (21,252), finding incremental growth with the help of affordable EVs.

In releasing today’s results, FCAI chief executive Tony Weber said the latest record-breaking month underscores the ongoing strength of the industry.

“The continued growth highlights consumer confidence and the industry’s ability to meet diverse needs of Australian motorists despite current economic challenges,” he said.

“The Australian market is one of the most open and competitive in the world which supply consumers with a wide choice of vehicle across all segments and price categories.”

That said, Toyota is not expecting the boom times to continue throughout the year, forecasting industry sales will back off during the second half as cost-of-living pressures and other factors continue to impact Australian consumers and businesses.

Top 10 brands (2024 year to date):

Top 10 models (May 2024):

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