Hybrid vehicle adoption in Australia continued its upward trajectory in 2025, with sales increasing by 15.3% year-over-year to a total of 199,133 units. This growth outpaced pure electric vehicle (EV) sales, which rose by 13.1% to 103,269 vehicles, but was significantly lower than the explosive 130.9% increase in plug-in hybrid (PHEV) purchases, reaching 53,484 units.
Market Dynamics and New Entrants
The Australian automotive market saw increased competition in 2025 as brands like Chery and KGM introduced their first hybrid models. Established players such as Hyundai and MG expanded their hybrid lineups, contributing to the overall market growth. This influx of new options pressured traditional leaders like Toyota and GWM, which experienced stagnant or declining hybrid sales.
Brand Performance: Toyota Leads, Hyundai Gains
Toyota maintained its position as Australia’s best-selling auto brand for the 23rd consecutive year and also dominated the hybrid segment. Nearly 48.6% of all Toyotas sold in 2025—amounting to 115,953 vehicles —were hybrids, though growth was modest at only 0.4%. This suggests Toyota’s dominance is stabilizing rather than rapidly expanding.
Hyundai secured the second position, witnessing a substantial 92.8% increase in hybrid sales, reaching 28,851 units. Meanwhile, GWM experienced a 6.5% decline in hybrid sales, selling 11,198 units.
Top-Selling Models: Toyota Dominates Again
The Toyota RAV4 remained Australia’s best-selling hybrid vehicle and the second-best overall model. Toyota further solidified its leadership by claiming six of the top ten best-selling hybrid spots. Hyundai’s Tucson and Kona SUVs also made the top five, with Kia Sportage being the only non-Toyota or Hyundai model in the top ten.
The Australian hybrid market is evolving rapidly, with new competitors and growing consumer interest in plug-in hybrids. Toyota’s continued dominance is tempered by rising sales from Hyundai, signaling a shift towards greater market diversification.
This data suggests a growing preference for hybrid technology among Australian buyers, driven by factors like fuel efficiency, government incentives, and increasing environmental awareness. The surge in PHEV sales indicates that consumers are seeking vehicles that offer both electric range and the flexibility of a combustion engine.
