Utes dominate new-car sales, but EV sales accelerate

Australian car tastes are changing dramatically, leaving some well established brands out in the cold while newcomers flourish at their expense.

Ute sales continue to boom in Australia. Picture: Supplied.

Australian’s love affair with utes continued in the first quarter of this year, but there are signs that electric vehicles are starting to make an impact.

Here are the winners and losers in the new-car market.

HOT

Utes

The cost of living crisis doesn’t appear to have hit tradies, if ute sales are anything to go by.

Utes took out the top three spots on the sales charts in March, as the Toyota HiLux narrowly outsold the Ford Ranger. Isuzu’s D-Max was third.

But the March figures don’t tell the whole story as the Ranger reigned supreme in the first quarter, threatening the HiLux’s seven-year reign as the country’s favourite vehicle.

Established nameplates such as the Mitsubishi Triton and Nissan Navara appear to have fallen off shopping lists, as cheap new Chinese workhorses from Great Wall Motors and LDV attract budget-conscious buyers.

At the top end of the market, Aussies continue to lap up huge American-style pick-ups, which often come with six-figure price tags. Sales of utes costing more than $100,000 are up by 67 per cent.

Utes are taking over Australian roads. Picture: Thomas Wielecki.

Electric vehicles

As supply improves, more and more Australians are making the switch to electric vehicles.

EV sales almost tripled in the first three months of the year, as more than 17,000 plug-ins found buyers.

Australians have bought more EVs than hybrids this year.

Tesla’s Model Y SUV was the fifth-best selling vehicle in March, while the Model 3 sedan was ranked 12th.

New EV-only Chinese brand BYD also had a strong month with its Atto 3 SUV.

Tesla’s Model Y was the fifth-best selling car in the country in March. Picture: Mark Bean.

Chinese brands

The decision by mainstream Japanese and South Korean brands to increase prices and ditch cheaper models from their ranges has opened the door for a wave of keenly-priced cars from China.

China has overtaken Korea as our third biggest vehicle importer, thanks to the success of brands such as MG, Great Wall Motors, Haval, LDV and BYD.

Great Wall Motors, which owns the Haval brand, has almost tripled its sales this year, while LDV sales are up by more than 40 per cent.

The trend is certain to continue for the rest of the year, following the recent launch of newcomer Chery.

Chinese brands such as Haval have been making big inroads. Picture: Supplied.

NOT

Toyota

The country’s favourite brand has had a tough start to the year, hampered by choked supply lines.

Sales were down by almost 40 per cent in March and almost 30 per cent year-to-date.

The brand’s two most popular vehicles, the HiLux ute and RAV4 SUV, recorded huge drops in sales over the same month last year, while the Corolla dropped out of the top 20 selling vehicles.

Long waiting times for delivery appear to be wearing thin with buyers.

Supply problems continue to hamper Toyota sales. Picture: Thomas Wielecki.

Hatchbacks

Hatchbacks such as the Mazda3 and Toyota Corolla used to rule the roost in the new-car market, but both have fallen victim to our obsession with SUVs.

Small-car sales have dropped by 20 per cent this year, as small, city-friendly softroaders become the default option for urban buyers.

The Mazda3 was once the top-selling car in the country. Picture: Thomas Wielecki.

Japanese brands

Sales of Japanese vehicles are down by 20 per cent this year.

Japanese car makers have been harder hit than most by supply issues but they have also suffered from the surge in popularity of cheaper Chinese cars.

Many are struggling with ageing product line-ups.

Mazda sales are down by 15 per cent this year, while Mitsubishi has slumped by close to 30 per cent.

Mitsubishi’s Outlander was a rare bright spot for the brand. Picture: Supply.

Originally published as Utes dominate new-car sales, but EV sales accelerate