Australian New Car Sales Hit Record $67 Billion in 2023

New car sales in Australia reached an all-time high in 2023, with consumers spending a record $67 billion, on new vehicles, according to industry data. The strong performance was driven by factors such as pent-up demand, improved supply chains, and consumer confidence in the automotive market.

The top-selling models in 2023 were the Ford Ranger ($4.3 billion), Toyota HiLux ($3.5 billion), Tesla Model Y ($2.5 billion), and Toyota LandCruiser ($2 billion). The average new car price in 2023 was $61,937, but the current average showroom price is close to $103,000, skewed by luxury brands. Prices increased the most for Ford (20.9%), Toyota (10.5%), and Hyundai (8.9%), while prices fell for Mini (-10.8%), Alfa Romeo (-9.1%), and Tesla (-7.7%).

BYD, an electrified vehicle manufacturer, has announced plans to double its sales in Australia every year, aiming to reach 100,000 sales by 2026. The company, led by its Australian distributor EVDirect and CEO David Smitherman, plans to launch up to five new models each year, covering all new-vehicle sales segments in the country. This expansion includes a significant increase in marketing spend and the expansion of the dealer network from 35 to over 70 outlets by the end of 2024.

BYD sold 12,438 vehicles in Australia in 2023 and aims to double that to 25,000 in 2024, with a further doubling to 50,000 in 2025. Smitherman believes the company can achieve 100,000 sales in 2026, which would make BYD one of the top-selling automotive brands in Australia. The expansion will include both battery-electric and plug-in hybrid models, reflecting BYD's global product mix.

Why this matters: The record spending on new cars in Australia highlights the resilience of the automotive market and the continued consumer appetite for new vehicles despite economic challenges. The ambitious growth plans of BYD also reflect the increasing popularity and adoption of electrified vehicles in the country.

The record spending on new cars in 2023 reflects the high number of vehicles sold and the soaring prices of new cars in Australia. As Smitherman stated, "BYD's expansion plans in Australia are a testament to the growing demand for electrified vehicles and our commitment to providing consumers with a wide range of options across all segments."

Key Takeaways

• New car sales in Australia reached a record $67 billion in 2023.
• Top-selling models were Ford Ranger, Toyota HiLux, Tesla Model Y, and Toyota LandCruiser.
• Average new car price was $61,937, with luxury brands skewing the current average to $103,000.
• BYD plans to double its Australian sales annually, aiming for 100,000 sales by 2026.
• The record spending reflects resilience in the automotive market and growing EV adoption.