The Australian automotive market has entered 2026 on a steady note, navigating the first full year of the New Vehicle Efficiency Standard (NVES) and a significant shift in where our cars are manufactured.
In January 2026, the market recorded 87,092 new vehicle sales, a marginal increase of 0.3% compared to January 2025. While it wasn’t the “best start ever” (that record remains with the post-pandemic surge of 2024), it signals a resilient market despite sustained cost-of-living pressures and a major decline in traditional petrol vehicle sales.
Quick Stats: January 2026
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Market Leader: Toyota maintained its #1 spot with 14,310 units, though this was a 22.3% drop from its 2025 peak as it awaited the new-generation stock of the RAV4 and Prado.
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The Ute King: The Ford Ranger remains Australia’s favorite vehicle, starting the year at #1 with 3,403 units.
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The “China Surge”: For the first time, China has firmly established itself as the second-largest source of vehicles for Australia, with Chinese imports growing by 68.6% year-on-year.
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Electric Transition: Battery Electric Vehicles (BEVs) held steady at 8.4% of the market, while Plug-in Hybrids (PHEVs) were the breakout stars, surging 170.5% to capture nearly 6% of all sales.
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Total “Low-Emission”: Inclusive of hybrids and EVs, electrified vehicles now account for roughly one in every three new cars sold.
Top 10 Car Models: January 2026
The leaderboard saw a major shake-up this year, with a Chinese-built SUV cracking the top five for the first time.
| Rank | Model | January 2026 Sales | Trend (vs 2025) |
| 1 | Ford Ranger | 3,403 | ↘️ Down 20% |
| 2 | Toyota HiLux | 2,800 | ↘️ Down 15.2% |
| 3 | Mazda CX-5 | 2,289 | ↗️ Up 22.3% |
| 4 | Chery Tiggo 4 Pro | 2,234 | ↗️ Up 119.4% |
| 5 | Mitsubishi Outlander | 1,975 | ↘️ Down 5.5% |
| 6 | Ford Everest | 1,913 | ↗️ Up 13.9% |
| 7 | Hyundai Kona | 1,839 | ↗️ Up 41.4% |
| 8 | Isuzu D-Max | 1,798 | ↘️ Down 13.8% |
| 9 | GWM Haval Jolion | 1,789 | ↗️ Up 39.1% |
| 10 | Toyota RAV4 | 1,757 | ↘️ Down 65.4% (Supply) |
Top 10 Car Brands: January 2026
| Rank | Brand | Jan 2026 Sales | Jan 2025 Sales |
| 1 | Toyota | 14,310 | 18,424 |
| 2 | Mazda | 7,692 | 8,326 |
| 3 | Kia | 6,600 | 5,719 |
| 4 | Ford | 6,116 | 6,600 |
| 5 | Hyundai | 5,856 | 5,478 |
| 6 | BYD | 5,001 | 3,050 |
| 7 | GWM | 4,509 | 3,434 |
| 8 | Mitsubishi | 4,347 | 5,682 |
| 9 | Chery | 3,780 | 1,837 |
| 10 | MG | 3,123 | 3,015 |
Sales by State/Territory
| State/Territory | Jan 2026 Sales | % Change vs 2025 |
| New South Wales | 26,305 | ↗️ 2.3% |
| Victoria | 23,890 | ↗️ 0.5% |
| Queensland | 18,782 | ↘️ 0.7% |
| Western Australia | 9,940 | ↗️ 0.3% |
| South Australia | 5,619 | ↘️ 3.0% |
| Tasmania | 1,424 | ↘️ 0.8% |
| ACT | 1,160 | ↗️ 2.0% |
| Northern Territory | 628 | ↘️ 18.1% |
Country of Origin: The Historic Flip
For decades, Japan and Thailand have been Australia’s primary car factories. In 2026, the gap between Japan and China has almost closed entirely.
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Japan: 22,943 (↘️ Down 24.6%)
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China: 20,921 (↗️ Up 68.6%)
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Thailand: 17,072 (↘️ Down 7.7%)
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Korea: 11,277 (↘️ Down 10.5%)
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Germany: 4,346 (↗️ Up 28%)
Things to Consider for 2026
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The NVES Effect: 2026 is the year manufacturers are “feeling the squeeze.” Strict CO2 limits (117g/km for passenger cars) mean brands that don’t sell enough EVs or Hybrids are now accruing millions in potential penalties. While some brands like Toyota have plenty of credits, others like Mazda and Subaru are facing heavy liabilities as they rush to electrify their fleets.
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Plug-in Hybrid (PHEV) Renaissance: After years of being overshadowed by full EVs, PHEVs have become the “practical choice” for 2026. The 170% sales jump shows Australians are increasingly using them as a bridge for long-distance travel while avoiding “range anxiety.”
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Toyota’s Supply Gap: The drastic 65% drop in RAV4 sales is a temporary stock issue, not a lack of demand. With the new-gen models hitting dealerships in April 2026, expect a massive “catch-up” period in the second half of the year.
