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News - Market Insight - Market Insight 2025Market Insight: Hybrid sales coolAAA report shows hybrid vehicle sales down, but still ahead of battery electric vehicles3 Mar 2025 By MATT BROGAN SALES of new hybrid vehicles (HEVs) continued to exceed those of battery electric vehicles (BEVs) in the last three months of 2024, despite losing market share amid a slowdown in new car sales across the country, says the Australian Automobile Association (AAA).
In a report published last week, the AAA said the share of HEV sales fell from 16.7 per cent in the September (2024) quarter to 14.8 per cent in the December quarter. HEVs still outsold BEVs, which increased their market share to 7.4 per cent – up from 6.6 per cent.
Further, the AAA notes sales of all light vehicles in the December (2024) quarter were the lowest since the January quarter of 2023.
During the fourth quarter of 2024, total new light vehicle sales were down 0.6 per cent (from 289,098 units to 287,294) with internal combustion engine (ICE) vehicles up 0.6 per cent to take a 75.1 per cent share of the overall market.
The AAA notes that BEV sales rose 11.9 per cent (from 19,057 to 21,331) across the same period, although still lower than the sales and market share achieved earlier in the 2024 calendar year.
Plug-in hybrid electric vehicle (PHEV) sales continued to rise as new entrants came to market and the end of Fringe Benefits Tax exemptions loomed, up 3.2 per cent from quarter three 2024.
HEV sales fell in all jurisdictions except for Tasmania.
Nationally, HEV sales were down 11.7 per cent from quarter three to quarter four 2024 (from 48,282 units to 42,618). The AAA says this reduction was largely due to “weaker sales for Toyota, which were down 6337 sales on Q3”.
The figures cover the final three months before the federal government implemented its New Vehicle Efficiency Standard (NVES), which is designed to drive greater sales of BEVs and more fuel-efficient vehicles such as PHEVS and HEVs.
The scheme took effect in January, and reporting of its effects will start in July.
More broadly, the AAA said there have been “significant quarterly fluctuations” in car sales over the past two years, producing a “clear trend of growth for hybrids” but also indicating that the availability of Toyota models might have a “significant impact” on the hybrid market.
It says BEV sales and market share seem to have peaked for now, with both metrics still below their Q2 2024 records.
The third and fourth quarters of 2024 featured lower total car sales than any of the preceding five quarters.
In the first half of 2023, and as reported by GoAuto previously, BEVs outsold HEVs, but since then HEVs have outsold BEVs in six consecutive quarters.
HEVs are now outselling BEVs even in the ACT, which has long been Australia’s strongest BEV market.
PHEV sales are growing strongly, but from a low base. PHEV sales are strongest in the ACT (6.4 per cent market share in Q4 2024). Tasmania and the Northern Territory had the lowest Q4 PHEV market shares – 1.3 per cent and 1.5 per cent respectively.
The five largest states had PHEV market shares between 2.5 per cent (in Queensland) and 2.8 per cent (in Victoria), in line with the national market share of 2.6 per cent.
Looking at fuel types across vehicle types in the final quarter of 2024, medium SUVs remain Australia’s most popular vehicle type and dominates the HEV, BEV, and PHEV markets, but among ICE vehicles are only the fourth-most popular behind four-wheel drive utes, small SUVs and large SUVs.
In the December quarter, a significant 69.9 per cent of new SUVs sold were ICE powered.
About a fifth (19.3 per cent) were HEV, 6.6 per cent were BEV, and 4.1 per cent were PHEV.
Of the 7556 PHEVs sold in the December quarter, 5962 (or 78.9 per cent) were medium SUVs.
ICE vehicles still dominated all market segments except for medium cars, with 4812 (58.1 per cent) being BEVs, 22.5 per cent ICE, 18.8 per cent HEV, and 0.6 per cent PHEVs.
Most small passenger cars sold (67.7 per cent) had an ICE under the bonnet, with 65 per cent of large cars and more than 99 per cent of light commercial utilities and vans also ICE powered.
2024 national quarterly new light vehicle market share*:
*Data supplied courtesy FCAI and Electric Vehicle Council.  Read more24th of February 2025  Market Insight: Isuzu trajectory stays upwardDespite economy, MU-X run-out, Isuzu sales continue to go from strength to strength17th of February 2025  Market Insight: BEV sales slide, down 21.7pcBEV sales slow as Aussies lose patience with sub-par choice, infrastructure, Musk |
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