Hybrids to spearhead Australian new-car sales in 2025

01/04/2025 04:00 PM

New car sales headlines in Australia are set to be dominated by hybrid vehicles in 2025 as car makers capitalise on their burgeoning popularity for everything from hatches, dual-cab utes and SUVs – and even the iconic Porsche 911 sports car.

Sales of hybrid cars have increased in key countries around the world, most notably in the United States (US) – the world's second largest market after China – where record third-quarter (September-October-November) 2024 sales saw hybrids take over 10 per cent share of total Light Duty Vehicle (passenger vehicle) sales. 

By the end of November 2024, conventional hybrid sales in Australia were up 79 per cent year-on-year, while plug-in hybrid electric vehicles (PHEV) had more than doubled with 100.4 per cent growth.

Plug-in hybrids drove the growth despite selling in lower numbers, with 20,453 sold by the start of December compared to 158,242 conventional hybrids.

MORE: Hybrid, plug-in hybrid and mild hybrid – What's the difference?

Conventional hybrids are vehicles powered by a mix of internal combustion (petrol or diesel) engines and electricity, but do not need to be plugged for their batteries to be recharged.

Hybrid vehicles, including plug-in hybrid electric vehicles, made up 15.89 per cent of all sales over the first 11 months of 2024.

In the largest segment – SUVs, which makes up just over half of all new vehicle sales – this rises to 21.9 per cent, one in five new SUVs sold, ahead of diesel and second only to petrol.

While petrol power continues to dominate overall, sales declined 14.3 per cent while diesel vehicles – driven by a significant majority in light commercials – rose by 2.3 per cent.

The mix is set to change further as car makers deal with the New Vehicle Efficiency Standard (NVES) which took effect from 1 January 2025, largely by adding more hybrids – rather than battery-electric vehicles – to their line-ups.

The EV Council claimed Australia reached a record milestone of 100,000 sales of electric cars in November 2024, yet this figure included the more than 20,000 plug-in hybrid vehicles sold as well – as electric car sales remain flat.

Leading the hybrid charge in 2024 was the Toyota RAV4 SUV – Australia's best-selling vehicle outright in November, having topped the sales charts for the fourth month in a row.

In fact, if Toyota hybrid models were a standalone brand they’d be the second-best selling nameplate in Australia – and ahead of every other car maker.

While hybrids previously commanded a price-premium over the petrol or diesel-only counterparts, the difference across most is now negligible and in some cases, nil.

The Hyundai Kona SUV is available in petrol or hybrid-petrol, with prices largely dictated by equipment levels.

The biggest difference remains with the battery-electric version, which is priced from $20,000 above the entry-level petrol Kona – $17,500 more than a Kona hybrid. 

The Toyota RAV4 has been available as hybrid-only since June 2024, when Toyota dropped petrol-only versions of every car it had also offered as a hybrid – effectively eliminating the hybrid purchase price premium.

It saw the Toyota Camry sedan, Kluger, Corolla Cross and Yaris Cross SUVs, as well as the Corolla sedan/hatch and Yaris hatchback (apart from GR versions) become hybrid-only.

The move was significant as Toyota has been Australia's most popular car brand for more than two decades, outselling next-best Ford by more than double in 2024 – meaning the Australian industry takes notice of any move it makes.

Toyota's hybrid switch came as it introduced its first – and still only – battery electric vehicle to Australia, the bZ4X SUV, in February 2024, with at least two more battery-electric models planned by the end of 2027.

Heading into 2025, the only non-GR Toyotas not offered as hybrid-only in Australia remain the HiLux ute, HiAce van, LandCruiser Prado and LandCruiser four-wheel drives.

The RAV4's success has seen it rapidly close-in on the Ford Ranger as the country's best-selling vehicle, but the Ranger is set to win the battle in 2024 – with Ford adding plug-in hybrid (PHEV) versions of both the Transit Custom van and Ranger in 2025.

The Ranger PHEV will face the BYD Shark 6 dual-cab ute – with first arrivals in January with a single plug-in hybrid spec aggressively priced at $57,990 before on-road costs – with more power and towing than a $90k Ranger Raptor.

BYD expects the Shark 6 to become its best seller – emulating the Ranger's success – as it chases overall market leader Toyota.

Hybrid versions of performance cars, too, are on their way to Australia including the Lamborghini Urus SE PHEV and – to the dismay of some enthusiasts – and a hybrid addition to the iconic Porsche 911 sports car line-up.

The NVES came into effect on 1 January 2025 but breaches won't be enforced until 1 July, when fines apply for vehicles emitting more than the regulated thresholds of carbon dioxide.

Hyundai and Kia have replaced several diesel models with hybrid versions, while both Nissan and VW responded to the NVES by introducing more hybrid models than previously planned to Australian showrooms.

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