Australia’s new-car buyer decline
New car intenders are on the decline in Australia.
While Chinese brands such as BYD and Chery are on the up, many of Australia’s most popular brands are struggling.
Total sales for cars in Australia are down more than two per cent for May 2026 compared to May 2025.
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This decrease grows to nearly five per cent, if sales of the Tesla‘s Model Y SUV and Model 3 sedan are excluded.
This is reflected year-to-date data, which shows a more than one per cent overall drop compared to 2025 so far.
The decrease comes after total sales declined slightly in 2025 compared to 2024, with sales already coming off a downturn in the second half of 2024.
Even dominant players in the Australian car market like Toyota have experienced a near 25 per cent drop this year compared to 2025 numbers.
This has been partly driven by a delay on supply for the new-generation RAV4 SUV, though.
Economic factors are key drivers for buyer decline, including the ever-increasing costs of buying a new car, coupled with higher fuel prices.
Potential buyers also need to satisfy cost of living pressures before thinking about buying a new car.
The impacts of these economic conditions increases the possibility of the Australian market continuing to stagnate.
Data provided from Roy Morgan last month showed buying intention to purchase a new car in the next four years has decreased by four per cent, and overall intention has dropped to 47 per cent.
“The latest data on car buying intention reflects Australians believe now is not a good time to make big purchase decisions in the middle of a cost-of-living crisis,” Roy Morgan Chief Executive Officer Michele Levine said.
The Kia Picanto, Australia’s cheapest new car on sale, remains the only car priced from less than $20,000.
The exponential growth of Chinese brands in Australia has been driven by the comparative cheapness to legacy brand alternatives.
Cars like the Chery Tiggo 4 and Jaecoo J5 EV small SUVs find themselves in the top 10 best sellers and have a price tag much lower than many of its legacy competition.
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