Total Australia/Oceania Passenger Cars Sales & Trends (Since 2005)
According to the OICA, the total passenger car sales in Australia and Oceania in 2022 was 777,688 units, a decrease of 3.0% from 2021. Australia is the largest car market in Australia and Oceania, accounting for over 90% of the region’s sales volume. New Zealand is the second largest car market in Australia and Oceania, with sales of 50,000 units.
The decline in car sales in Australia and Oceania is due to a number of factors, including the COVID-19 pandemic, chip shortages, and rising inflation. The COVID-19 pandemic has disrupted supply chains and led to production delays, while chip shortages have also affected production. Rising inflation has made cars more expensive, which has also dampened demand.
Despite the decline in car sales, there are some positive trends in the Australia and Oceania passenger car market. The market share of SUVs has increased significantly in recent years, and it is expected to continue to grow in the coming years. In 2022, SUVs accounted for 60% of new car sales in Australia and Oceania, up from 45% in 2019.
The Australia and Oceania passenger car market is expected to grow in the coming years, but it is unlikely to return to the levels seen before the COVID-19 pandemic. The market is expected to grow at a slower pace than in previous years, and the shift to SUVs is expected to continue.
Australia/Oceania Automotive Market Trends
Australia dominates the automotive market in the Oceania region, so most of the notable trends come from there, but some Pacific island nations have their unique dynamics. One of the most significant shifts in the Australian automotive landscape was the closure of local car manufacturing plants. Brands like Holden, Ford, and Toyota ceased their manufacturing operations in Australia between 2016 and 2017, marking the end of an era. This was due to various reasons, including the high cost of domestic manufacturing and competition from imported vehicles.
There was a clear trend towards SUVs, crossovers, and ‘utes’ (pickup trucks). These vehicles, known for their versatility, became particularly popular in Australia, catering to both urban and rugged outback conditions. Traditional sedans saw a decline in sales in favor of these larger vehicles.
While Australia lagged behind Europe and some parts of Asia in terms of electric vehicle (EV) adoption, interest in EVs grew steadily. Brands like Tesla gained popularity, and there was increasing attention from the government and private sectors to expand the charging infrastructure. Apart from electrification, there was a growing interest in vehicles with better fuel efficiency and lower emissions. This was partly due to rising fuel prices and growing environmental consciousness among consumers. As with global trends, Australian consumers came to expect higher levels of tech integration in their vehicles, including sophisticated infotainment systems, smartphone connectivity, and onboard Wi-Fi.
With the end of local manufacturing, the market was dominated by imported vehicles. Brands like Toyota, Mazda, and Hyundai were among the best-sellers. Economic conditions, such as interest rates and consumer confidence, influenced car sales in Australia. The impact of global events, such as the COVID-19 pandemic, was also felt in the automotive market with disruptions in supply chains and temporary reductions in demand. Australia/Oceania Passenger Car Sales
