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We’re only midway through this decade, and the car industry is almost unrecognisable today compared to the beginning of 2020. The rise of Chinese brands, the fall of Holden and the rollercoaster ride that is the electric vehicle market globally.
Just in case you’ve missed all the action from just this year, here are the biggest automotive stories of 2025.
As it turns out, it’s all about range convenience, not range anxiety.
Sales of plug-in hybrid electric vehicles (PHEVs), defined by cars like the BYD Sealion 6 and Mitsubishi Outlander PHEV, are booming. This is despite fears of a massive drop after the Federal Government’s fringe benefits tax (FBT) exemption deadline passed on April 1, which had stimulated demand way beyond predictions leading up to that date.
To the end of November, PHEV sales are up around 130 per cent compared to the same period last year. More options, improved models and the reassurance of not being stranded should the battery run out due to the on-board internal combustion engine (ICE) are the main motivators.
As Toyota Motor Company Australia (TMCA) Vice President Sales, Marketing and Franchise Operations, Sean Hanley, told RAC at the recent HiLux ute local launch, “I believe in the next five years that PHEV will be the powertrain of choice in light SUVs and passenger vehicles.” PHEVs are here to stay.
Chinese manufacturer BYD has achieved a historic milestone – price parity between EVs and ICE vehicles. This is something that most industry analysts were not expecting for at least another three years.
The models in question are the Atto 1 light car and Atto 2 small SUV, priced from $23,990 (all prices are before on-road costs) and $31,990 respectively. Both are high-tech EVs that undercut many conventional equivalents.
The corresponding petrol-powered Suzuki Swift hatch and Hyundai Kona each cost more in their respective segments. And the BYD Sealion 5, from $33,990 is now Australia’s least-expensive PHEV, costing some 10 per cent less than the Geely Starray EM-I PHEV.
Global Tesla sales in the first half of this year were down nearly 15 per cent, driven largely by widespread consumer backlash against founder Elon Musk, but also because of a dated model range including the best-selling Model Y SUV.
But while a comprehensive update of the latter has seen some recovery, volume is still down by seven per cent year-on-year after more than a decade of unrelenting growth, despite very aggressive marketing tactics by the American company. Pundits are suggesting that Tesla’s bubble has burst.
During the 1960s and ‘70s, the emerging Japanese car industry relied on low prices and high equipment levels to mask their driving deficiencies, as the country was still learning the ropes. The same applied with Korean cars in the ‘80s and ‘90s, as well as Chinese cars over the past decade.
Amongst the worst were their utes, which were crude and unrefined workhorses. But most have improved out of sight, with two exceptional examples, the LDV Terron 9 and Foton Tunland V7 and V9, proving to be among 2025’s most-improved models, period. Not class-leading, granted, but the chasm is closing.
BYD burst on to the Australian scene in 2022, getting on board the EV express train with the well-packaged, high-tech and keenly-priced Atto 3 small SUV.
That proved to be a resounding success, but it has been with a pair of PHEVs, positioned in the heart of this country’s most popular segments – mid-sized SUVs and utes – that have struck a chord with buyers.
Both launched last year, driving BYD sales up by a whopping 147 per cent year-to-date, to over 45,000 units, breaking into the top 10 in the process.
BYD now says it has its eyes on dethroning Toyota from the number one spot. One to keep an eye on.
There’s an old adage in the car industry – design sells.
If people do not like the look of a vehicle, it’s in trouble. Case in point, the Kia Tasman. Korea’s first true mid-sized ute rival to the Toyota HiLux has been praised for its great packaging, quality interior layout, efficient performance, decent driving manners and off-road capability.
But selling fewer than half of the 1600 units forecast for each month before its July launch means only one thing: consumers do not like the otherwise exceptional ute’s styling. What’s worse, the cut-through pre-reveal launch campaign has ultimately failed. We hear a hasty restyle is underway.
Chery vehicles are often criticised for being sub-standard in terms of comfort and refinement, relying instead on low prices and an appealing presentation.
But few carmakers have enjoyed near-200 per cent jumps in volume in the space of one year. One of 2025’s big success stories.
After years of criticism and lobbying by several motoring organisations, the local crash-test rating authority, Australasian New Car Assessment Program (ANCAP) has followed its European affiliate Euro NCAP in announcing stricter parameters surrounding advanced driver-assist system (ADAS) performance.
These include intrusive lane-support tech and driver-alert monitors, that have caused dangerous distractions, confusion and even unpredictable vehicle behaviour as a result. This will force carmakers – particularly Chinese manufacturers – who have refused to fully test ADAS applications to save money, to rethink their attitude if they are to achieve the coveted full five-star ratings from January 1, 2026.
