Forecast: Passenger Cars in Use in Australia

Australia's passenger cars in use increased steadily from 2013 to 2019, showing modest year-on-year growth rates between 0.78% and 2.29%, culminating in 14.11 million units in 2019. However, 2020 saw a significant dip of -16.15% due to the pandemic, dropping to 11.83 million units. Recovery was evident from 2021 with a notable increase of 15.6%, continuing into 2022 and 2023 with growth rates of 6.28% and 0.94%, reaching 14.67 million units in 2023. The 5-year compound annual growth rate (CAGR) leading up to 2023 was approximately 1%. The forecast indicates a consistent increase up to 2028, with a predicted CAGR of 0.76% and an overall growth rate of 3.87% over the next five years.

Future trends to watch for in the Australian passenger car market include:

• Adaptation to electric vehicles (EVs) and government policies promoting sustainable transportation.
• Impact of technological advancements on car longevity and usage patterns.
• Potential disruptions from ridesharing platforms and autonomous vehicles influencing car ownership.