Why car sales are defying the cost-of-living pressures

Australians are continuing to buy new cars despite cost-of-living pressures, with electric vehicles and Chinese brands playing an increasingly important role in the market.

According to VFACTS, 102,924 new vehicles were sold in September, excluding Tesla and Polestar, an increase of 0.9% compared with the same month last year.

However, the bigger story is the changing mix of vehicles Australians are choosing.

Battery electric vehicles accounted for 24.2% of new vehicle sales across all reporting sources in September, more than double their 11.3% share a year earlier.

Other electrified vehicles are also gaining popularity. Plug-in hybrid sales increased 122.7% compared with September 2025, while conventional hybrid sales rose 20.7%.

Meanwhile, petrol vehicle sales fell 36.2% and diesel sales declined 18.4%.

Chinese brands are gaining ground

One reason new vehicle sales have remained resilient is the growing presence of Chinese manufacturers, which are offering consumers more affordable models and a wider selection of electric vehicles.

Five of September's 10 most popular car brands were Chinese:

• BYD
• GWM
• MG
• Geely
• Chery

BYD was Australia's second-largest car brand for the month, behind Toyota, recording 8,191 sales.

The growing competition is giving Australian motorists more choice across different price points, vehicle types and technologies.

What should buyers consider?

While the purchase price is important, it's worth looking beyond the sticker price when comparing vehicles.

For example, an electric car may cost more upfront than a comparable petrol model, but could offer lower running costs depending on how much you drive and where you charge it.

Other expenses to consider include insurance, servicing, registration and depreciation.

Your choice of finance can also affect the overall cost. Factors such as the interest rate, loan term, fees and any balloon payment can influence both your regular repayments and the total amount you pay.

With more vehicles to choose from, finding the right finance is just as important as choosing the right car. Before you visit a dealership, let's work out a car loan budget that suits your circumstances.