Australia’s Record July Car Sales: What BYD’s Rise Means for New Car Buyers

Australia’s new-car market is changing quickly. July 2025 delivered the strongest July on record at the time, with 103,097 new vehicles reported through VFACTS, up 3.6% compared with July 2024. The result reflected continued buyer confidence and growing demand for SUVs, hybrids, plug-in hybrids and vehicles from emerging Chinese manufacturers.

Since then, the competition has intensified. In June 2026, Australia recorded its strongest month of new-vehicle sales ever, with 131,134 vehicles reported through VFACTS. Toyota remained the leading brand, but BYD finished just 243 vehicles behind it, highlighting how rapidly Australia’s automotive market is shifting.

For buyers, more competition can mean greater choice, more advanced technology and stronger value across a broader range of vehicles. However, deciding which car to buy is only part of the process. It is equally important to compare how the vehicle will be paid for and what it may cost to own over time.

Eligible employees can explore a novated lease, estimate possible savings with Fingo’s novated lease calculator or compare other car finance options before committing to a new vehicle.

Quick answer: BYD’s growth is giving Australian buyers more choice across electric, plug-in hybrid and conventional vehicle segments. Toyota remains the market leader, but the narrowing sales gap shows that brand loyalty, vehicle technology and value are becoming increasingly important purchase factors.

What Did Australia’s Record July Car-Sales Result Show?

The July 2025 result was notable because it surpassed the previous July record despite cost-of-living pressures affecting many households.

According to the FCAI, Australians purchased 103,097 new vehicles during the month. That was 3.6% higher than the corresponding period in 2024. SUVs continued to dominate buyer preferences, while plug-in hybrids and vehicles manufactured in China contributed to the market’s growth.

Australian new-car market snapshot

Sources: FCAI and VFACTS reporting.

The figures do not necessarily mean every buyer should rush into a purchase. They show that Australians are being offered more vehicles, powertrain choices and pricing options than they had only a few years ago.

Why Is BYD Growing So Quickly in Australia?

BYD has expanded rapidly by competing in several high-demand categories rather than relying on a single electric model.

Its Australian range now gives buyers access to battery-electric vehicles and plug-in hybrids across different body styles and price points. The company’s growth has also been supported by increasing consumer acceptance of Chinese-manufactured vehicles and greater interest in alternatives to established Japanese, Korean, European and American brands.

BYD’s momentum was particularly visible in June 2026. Toyota recorded 19,439 sales, while BYD achieved 19,196, leaving a gap of only 243 vehicles. It was the closest another manufacturer had come to Toyota’s monthly Australian sales volume in decades.

BYD models also appeared prominently in the June rankings, with the Sealion 7 and Shark among Australia’s five highest-selling vehicles for the month.

What is driving BYD’s appeal?

• EV FBT Exemption with Novated Lease
• Competitive prices relative to many established manufacturers
• A growing range of electric and plug-in hybrid vehicles
• Strong standard equipment levels
• Modern infotainment and safety features
• Increased availability across Australian dealerships
• Greater interest in reducing fuel and ownership costs
• Fuel crisis caused by geopolitical uncertainty 

Buyers considering the brand can compare the cost of a BYD novated lease against traditional vehicle finance and an outright purchase.

Has BYD Overtaken Toyota in Australia?

No. Toyota remains Australia’s leading automotive brand.

However, the June 2026 result demonstrated that Toyota’s lead is no longer guaranteed in every month. BYD came within 243 vehicles of matching Toyota, while its rapid growth placed greater pressure on several other established manufacturers.

Toyota has responded by securing additional vehicle supply for Australia and targeting approximately 220,000 sales during 2026. BYD is also strengthening its supply chain and increasing vehicle shipments as it pursues further growth.

Toyota vs BYD for Australian buyers

The best option depends on the vehicle, intended use, expected ownership period, charging access and budget. Buyers should compare individual models rather than assuming one manufacturer is automatically better.

What Does Greater Competition Mean for New-Car Buyers?

Greater competition usually gives buyers more leverage.

As brands compete for attention, they may introduce sharper pricing, additional equipment, longer warranties, faster vehicle availability or finance campaigns. Competition can also encourage established manufacturers to accelerate new model launches and expand their hybrid or electric ranges.

For consumers, this creates three main opportunities.

1. More vehicles at different price points

Australians can now compare electric and hybrid vehicles across a wider range of budgets. EV ownership is no longer limited to a small group of premium models.

2. Better standard equipment

Newer market entrants often use technology, safety features and generous specifications to differentiate their vehicles.

3. More ways to structure the purchase

The advertised drive-away price is only one part of the decision. Buyers may also compare:

• Paying cash
• A personal car loan
• Dealer finance
• A secured vehicle loan
• A novated lease through an employer

A novated lease may allow eligible employees to package vehicle finance and approved running costs through their salary. People who cannot access salary packaging can explore Fingo’s broader car finance solutions.

Are Electric and Plug-In Hybrid Vehicles Driving the Market Shift?

Electrified vehicles are becoming a much larger part of Australia’s new-car market.

The FCAI reported that electrified vehicles accounted for 46% of sales in May 2026. During April, battery-electric vehicles represented approximately one in six new vehicles sold through the relevant reporting sources.

However, “electrified” is a broad term. It can include conventional hybrids, plug-in hybrids and fully electric vehicles. Each option has different charging requirements, fuel use and ownership considerations.

Eligible battery-electric vehicles may receive additional tax benefits through EV FBT Exemption when financed through a novated lease, subject to the vehicle and arrangement meeting the relevant requirements.

Because eligibility rules and individual savings vary, buyers should obtain a personalised quote rather than relying only on a general online estimate.

Should Buyers Focus on the Purchase Price or the Total Cost of Ownership?

The total cost of ownership usually provides a more useful comparison than the advertised price alone.

Two vehicles with similar purchase prices may have significantly different costs once finance, energy, fuel, servicing, tyres, insurance, registration and depreciation are considered.

Costs to compare before choosing a vehicle

Quote-ready insight: A cheaper vehicle is not automatically the lowest-cost vehicle. Buyers should compare the full ownership cost across the period they expect to keep the car.

Fingo’s novated lease calculator can provide an initial estimate, but a tailored quote will account more accurately for the buyer’s salary, employer arrangements, vehicle choice and expected running costs.

Is Now a Good Time to Buy a New Car?

There is no single best time for every buyer.

Strong sales and increased competition can create attractive opportunities, but a purchase should still be based on affordability and suitability rather than market excitement.

Before proceeding, buyers should consider:

• Whether the vehicle meets their daily driving needs
• Whether home or workplace charging is available
• The likely finance commitment
• Expected annual kilometres
• Insurance and servicing costs
• How long they plan to keep the vehicle
• Whether salary packaging is available through their employer

A new model, promotional rate or tax advantage may appear appealing, but it should still fit comfortably within the buyer’s budget.

Ready to Compare the Cost of Your Next Car?

Explore Fingo’s novated lease options, calculate an initial estimate using the novated lease calculator or request a personalised quote from Fingo’s vehicle-finance specialists.

What Should Buyers Take Away From BYD’s Rise?

BYD’s rapid growth is a sign of a broader structural change in Australia’s automotive market.

Toyota remains the country’s leading manufacturer, but buyers are now considering a wider mix of brands, vehicle types and powertrains. Chinese manufacturers are playing a more prominent role, EV and plug-in hybrid choices are expanding, and traditional brands are responding with additional supply and new technology.

This gives Australian consumers more choice, but it also makes proper comparison more important.

Before choosing a BYD, Toyota or any other new vehicle, compare the model’s suitability, total ownership cost and finance structure. A competitive sticker price may attract attention, but the right vehicle should also align with the buyer’s income, driving habits and long-term financial goals.