The South Australian new vehicle market underwent a fundamental transformation in 2025, moving beyond traditional fuel types toward a landscape shaped by rapid electrification and increased global competition. The year was defined by a decisive shift away from conventional petrol engines toward flexible, low-emission alternatives.
Motor Trade Association SA/NT CEO Darrell Jacobs explained, “South Australians are increasingly looking past established brand heritage in favour of advanced technology and value, a trend that has allowed emerging manufacturers to challenge long-standing market leaders.”
South Australia saw 77,334 new vehicles sold in 2025, building on a record-breaking 2024, despite ongoing cost-of-living-pressures throughout the year
The standout story of 2025 was the explosive growth of Plug-in Hybrid Electric Vehicles (PHEVs). Sales surged by 134.2 per cent year-on-year, with 3,431 vehicles sold compared to 1,465 in 2024. PHEVs now represent 4.4 per cent of the total market, effectively serving as a practical bridge for South Australians transitioning away from traditional internal combustion engines.
Mr Jacobs said the results highlight a maturing market navigating the first full year of the New Vehicle Efficiency Standard (NVES).
“The 2025 data shows a more sophisticated South Australian consumer who is balancing environmental goals with practical needs,” Mr Jacobs said. “The rise of PHEVs, alongside the continued dominance of hybrid technology now accounting for 17.9 per cent market, shows that while the appetite for lower emissions is strong, buyers are still seeking the flexibility”.
Mr Jacobs noted the competitive landscape has changed significantly over the past five years. “Today, dozens of brands compete in the Australian market, a record high that includes a significant influx of Chinese manufacturers.”
China has cemented its position as a major source of vehicles for Australia. Nationally, Chinese brands have now secured places in the top 10, a stark contrast to five years ago when their market presence was minimal. This growth has placed traditional brands under increased pressure as they adapt to both new competition and tightening efficiency standards.
Despite these shifts, popular models continue to drive competition. The Toyota RAV4 cemented its place as the vehicle of choice for South Australians in 2025 In a late-year shift, the Mazda CX-5 overtook the Mitsubishi Outlander in December to claim fourth place overall. The top five best-selling models reflect an ongoing preference for reliable and versatile vehicles, even in a challenging economic environment.
“The industry is at a critical juncture,” Mr Jacobs said. “Manufacturers are now actively accumulating emission units, which will shape vehicle availability and pricing in the years ahead. While hybrids currently provide a safe middle ground for many buyers, their long-term viability under tightening targets will depend on rapid innovation. The scheduled NVES review later this year will be critical to ensuring the framework remains achievable for both dealers and the South Australian consumers.”
TOP 5 New Vehicles – 2025 YTD
- Toyota RAV4 – 3,944
- Ford Ranger 4×4 – 3,272
- Toyota Hilux 4×4 – 3,091
- Mazda CX-5 – 2,136
- Mitsubishi Outlander – 2,131
Zero and low emission vehicles sold in SA in 2025
- Electric vehicles make up 7.1 per cent of all new cars sold in South Australia, up 27.6 per cent compared to December 2024.
- Hybrid vehicles make up 17.9 per cent of all new cars sold in South Australia, up 9.7 per cent compared to December 2024.
- Plug-in hybrid vehicles make up 4.4 per cent of all new cars sold in South Australia, up 134.2 per cent compared to December 2024.
ENDS
