Number of motor vehicles

The total number of registered motor vehicles is expected to increase by 1.4% in January 2024 to reach 21.5 million motor vehicles. Growth is anticipated to be subdued during the year as supply chain disruptions have limited the availability of new vehicles and inflationary pressures have constrained purchasing power. A rising cash rate has also restricted consumers' and businesses' ability to purchase vehicles as the cost of borrowing has risen. Nevertheless, the population is projected to increase, supporting growth. Growth in the number of motor vehicles typically correlates with population growth, as most people aged 18 and older prefer a motor vehicle for transport. Furthermore, businesses are using an increasing number of commercial vehicles to service a growing population.

The composition of the vehicle fleet has changed over the past five years. Environmental considerations are driving consumers to opt for more fuel-efficient vehicles. SUVs have also become increasingly popular, as their fuel efficiency has improved and consumers have sought a more spacious vehicle. Utility vehicles have also followed a similar trend.

Growth in the number of vehicles over the past five years has primarily been driven by light rigid trucks and light commercial vehicles. Growth in online shopping and the increasing popularity of utility vehicles used for everyday needs have contributed to the substantial increase in light rigid trucks and commercial vehicles. Non-freight carrying vehicles have also grown strongly over the period. These vehicles are fitted for particular purposes, like ambulances and fire trucks.

The number of motorcycles has increased over the past five years. Motorcycles are typically more fuel-efficient than the smallest passenger cars, which has supported demand over the past five years, boosting total vehicle numbers. Demand for buses has been on the rise throughout the period as both tourism and public transportation have begun to rebound. Also, increasing high-density living in capital cities has led to some households forgoing a car altogether. These trends have curbed growth in motor vehicles over the past five years. Overall, IBISWorld forecasts the number of motor vehicles registered to increase at a compound annual rate of 1.9% over the five years through January 2024.