Winners and losers from 2025 - and how they'll reshape the 2026 car market

The automotive industry will emerge from 2025 looking radically different to what many predicted just a few years ago, with clear winners, high-profile failures and shifting buyer expectations now setting the agenda for 2026.

Five years ago, few would have predicted the end of production for icons such as the Nissan GT-R, or that traditional manufacturers would appear cautious while newer brands pushed boundaries.

Yet that was the reality in 2025, as consumers showed little patience for incremental change.

One of the year’s biggest successes was the evolution of the ute market into three distinct categories.

Lifestyle-focused offerings such as the BYD Shark 6 sat alongside heavy-duty workhorses like the Ford Ranger Super Duty, while more experimental vehicles such as the Deepal E07 explored alternative powertrains and designs. The result was clearer choice for buyers and fewer compromised, one-size-fits-all products.

In contrast, Tesla endured one of its toughest years yet.

The stainless steel Cybertruck, whose Aussie launch is back on the agenda, saw deliveries fall sharply, with buyers citing premium pricing, inconsistent build quality, limited practicality and real-world range shortfalls.

Check out our 2025 wrap video with all Kelly Bluebook stats and sales breakdowns. The gap between early marketing promises and ownership reality proved impossible to ignore as established rivals offered more conventional, dependable alternatives.

Safety technology also reached a turning point.

After years of criticism over intrusive alerts and constant warnings, manufacturers began refining their systems.

Vehicles with subtler lane guidance and better-calibrated adaptive cruise control scored more highly in our testing. This shift towards overt and intrusive safety warnings (that are sometimes more distracting!) was influenced by ANCAP’s assessment framework rather than genuine manufacturer enthusiasm.

Another flashpoint was subscription fatigue.

Automakers faced growing customer frustration (and anger) for charging ongoing fees to unlock features already fitted to vehicles, such as heated seats or remote engine start.

While buyers generally accept subscriptions for services with genuine operating costs, monetising built-in hardware damaged trust and is likely to influence brand perceptions well beyond 2026.

In high-performance news, GWM’s decision to pursue a twin-turbo V8 supported by plug-in hybrid technology showed how electrification could extend the life of traditional engines.

With PHEV registrations surging in 2025, Australian buyers demonstrated a preference for flexibility over ideology, combining petrol capability with limited electric driving.

Jaguar, however, struggled with a poorly received reinvention.

Its all-electric pivot and polarising design direction alienated long-time fans without clearly winning new ones, leaving the brand facing a long and uncertain recovery. There was even a report suggesting Jaguar's design boss was booted out.

European manufacturers also quietly retreated from ambitious full-electrification targets, acknowledging that global demand and regulatory pressures had outpaced market readiness.

Was the European Commision to blame for this premature EV push, with EU regulations that sought to ban combustion engines by 2035? Probably didn't help. Now we're seeing a renewed focus on hybrids and continued internal-combustion development, including V8 engines.

Perhaps the most significant shift was the rise of Chinese manufacturers. Three brands finished the year inside Australia’s top ten by sales, with improved build quality, strong warranties and competitive pricing helping them shed their former budget image.

Economic uncertainty in 2025 accelerated a move away from brand loyalty towards value and practicality, while the balance of automotive power continued shifting east.

As cost pressures mount, artificial intelligence is expected to play a greater role in new vehicle development and marketing. All car-makers are seeking to reduce costs and improve efficiency and while AI is no silver bullet, it's clear that it's being trialled, mirroring several other manufacturing industries.

Whether 2026 delivers genuine innovation or settles for safe, AI-assisted evolution will depend on how well manufacturers absorb the lessons of a turbulent but defining year.

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