How fuel prices have impacted car sales

Topic: Automotive Industry

Fuel costs have had little impact on big car sales.

In short:

Large utility vehicle sales have been minimally impacted by rising fuel costs.

Electric vehicles now make up 16 per cent of the total market share.

Car sales are down in 2026 compared to the past two years.

Large utility vehicles remain popular despite increasing fuel prices.

Fuel prices reached a national average peak of 319 cents per litre for diesel and 224.5 cents per litre for petrol.

Prices have been trending downward, with the national average for diesel being 247.2 cents per litre and petrol 183.6 cents per litre.

Sales of 4X4 utes have decreased to 13,251 compared to 15,672 in April last year.

4X2 sales have slightly increased to 1,775 in April this year from 1,719 in April last year.

Sales of $100,000+ utes increased from 803 in February to 930 in March before declining to 560 in April.

NRMA spokesman Peter Khoury said fleet-running businesses, including governments, are the biggest investors in new cars.

Car sales across the board have been down over the past two months.

Consumer confidence and concern about the economy have impacted car sales.

All petrol and diesel cars have fallen in sales, which is not a huge shock.

The Ford Ranger, Toyota RAV4 and Toyota HiLux have remained popular, but the top 10 has started to change.

Hybrid car Haval Jolion and electric vehicle BYD Sealion 7 have jumped in popularity.

Large vehicle stronghold

Utes have had a stronghold in Australia for almost two decades.

Utes are used by many people, whether it's trades, builders, or farming, which contributes to strong sales.

The majority of new cars sold are still SUVs and larger vehicles.

Peter Khoury says utes are popular with many different types of Australians.

Electric vehicles are growing increasingly popular, making up about one in six new car sales in April.

The worst petrol prices on record have made electric vehicles more attractive.

Increasing variety and lowering prices are also drawing buyers towards hybrid and electric vehicles.

The oil crisis has contributed to the growth of electric vehicle sales.

Australians who were looking to buy a new car have found electric vehicles more attractive.

People did not invest in electric vehicles solely because of the oil crisis.