Australia bought more new cars in 2025 than ever before: over 1.24 million vehicles.

The more useful question isn’t the record. It’s what people picked when they signed the paperwork — and what that says about what might suit you.

The 2025 numbers point to four clear camps.

1. Battery-electric (EVs): Growing, led by private buyers

EVs were just over 8% of the market in 2025 — about 103,000 deliveries. Most went to private and business buyers, not government or rental fleets.

That’s a sign EVs aren’t just a fleet experiment. People are choosing them on purpose.

EVs tend to suit you best when you can charge easily (at home, at work, or reliably nearby) and your usual driving fits the range.

2. Plug-in hybrids (PHEVs): A practical bridge

Plug-in hybrids made up 4.3% of new car sales in 2025. That’s smaller than EVs or regular hybrids, but it’s moving up — again, mostly driven by private buyers.

PHEVs make sense if most of your trips are short and you can plug in, but you still want petrol range for longer runs.

3. Hybrids: Normal now

Regular hybrids hit 16% of the market in 2025 — close to 200,000 vehicles. They’re not a niche choice anymore.

Hybrids sold well across private, business, and rental buyers because they cut fuel use without asking you to change your routine. No plugs, no new habits.

4. Petrol and diesel: Still the default

Even with the shift, petrol and diesel (plus mild hybrids) still made up over 70% of new car sales.

For many drivers, that’s still the right call — especially if you tow, travel long distances, or live regional. Rentals also still lean heavily this way.

But it’s worth thinking past the purchase price. Your running costs over the next few years will depend on fuel prices, resale values, and any policy changes.

So what should you do?

Start with your week, not the marketing!!

  • How far do you drive most days?
  • Can you charge where you park?
  • Do you tow?
  • Do you do long highway trips?
  • How long will you keep the car?

At carconnect, we’ve helped 60,000+ Australians compare options and buy without the dealership back-and-forth.

Thinking of upgrading? Let’s talk.

We’ll help you cut through the noise and choose a car that fits your life.