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The Australian automotive industry has seen another dynamic year, with the used car market experiencing strong growth for most of 2024, followed by a cooling period in the final months.
Our Automotive Insights Report (AIR) 2024, released in collaboration with the Australian Automotive Dealer Association (AADA), provides a comprehensive analysis of the trends, challenges, and opportunities that shaped the market over the past year.
So, what happened in 2024, and what does it mean for the year ahead? Let’s dive into the key insights.
Used Car Sales Continued to Grow, But Momentum Slowed
According to the report, total used car sales in 2024 reached 2,324,805 units, marking a 12.1% increase compared to 2023. This growth was driven by strong consumer demand, stable supply levels, and competitive pricing strategies.
🚀 Sales peaked in July, reflecting high mid-year demand.
📉 Listings peaked in November, signalling a potential shift where supply outpaced demand in the final months.
AADA CEO James Voortman commented on the evolving landscape:
“The 2024 results highlight a dynamic used car market that showed strong growth through much of the year before slowing in the final quarter. While demand remains healthy, we are seeing signs of cooling, particularly in the latter months, as affordability pressures and economic factors come into play.”
Which Brands and Models Dominated?
Despite shifting market conditions, some familiar names continued to lead the pack:
🏆 Top-Selling Brand: Toyota – 390,298 used vehicles sold
🥈 Runner-Up: Mazda
🥉 Third Place: Ford
On the model front, the Ford Ranger took the crown as the best-selling used vehicle, with 82,448 sales, followed closely by:
🔹 Toyota Hilux
🔹 Toyota Corolla
These results reaffirm the ongoing popularity of dual-cab utes and practical, fuel-efficient passenger vehicles.
A Market Correction in Motion?
While 2024 was largely a growth year, the final quarter indicated a market correction may be underway. Key indicators of this slowdown include:
📉 Profit margins tightening
📉 Days to sell increasing by 15% (August–October)
The market is expected to stabilise rather than grow at the rapid pace seen earlier in 2024, leading to more competitive pricing and opportunities for buyers in 2025.
Looking Ahead to 2025
With signs of a more balanced market, the 2024 insights set the stage for a more measured outlook in 2025. Economic factors, affordability challenges, and shifting consumer demand will continue to shape the landscape.
For a detailed breakdown of trends, data, and analysis, you can view the full 2024 Year That Was Automotive Insights Report (AIR) here.
