Australia Hybrid Vehicles Market: Industry Trends, Share | 2025-2033

Market Size in 2024: USD 15.93 Billion
Market Size in 2033: USD 194.03 Billion
Market Growth Rate 2025-2033: 28.40%

According to IMARC Group's latest research publication, "Australia Hybrid Vehicles Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Australia hybrid vehicles market size was valued at USD 15.93 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 194.03 Billion by 2033, exhibiting a CAGR of 28.40% during 2025-2033.

How AI is Reshaping the Future of Australia Hybrid Vehicles Market

• Optimizing Energy Management Systems: AI-powered algorithms are revolutionizing how hybrid vehicles manage power distribution between electric motors and combustion engines, learning individual driving patterns to maximize fuel efficiency across Australia's diverse terrains, from urban stop-start traffic in Sydney and Melbourne to long-distance highway travel across the continent.
• Enhancing Predictive Maintenance: Machine learning systems are analyzing real-time vehicle data from hybrid components including batteries, motors, and engines to predict maintenance needs before failures occur, reducing downtime and ownership costs for the growing fleet of Toyota RAV4 Hybrids and other popular models on Australian roads.
• Enabling Smart Charging Infrastructure: Artificial intelligence is optimizing the New South Wales government's deployment of 246 fast and ultra-fast EV chargers across 38 suburbs, managing grid loads and charging schedules to support plug-in hybrid owners while integrating renewable energy sources to minimize carbon emissions.
• Improving Range Prediction and Navigation: Advanced AI systems are providing accurate range estimates for plug-in hybrids by analyzing factors including driving behavior, terrain, traffic conditions, and battery health, then suggesting optimal routes and charging stops across Australia's vast distances, reducing range anxiety for consumers.
• Accelerating Autonomous Driving Features: Artificial intelligence is advancing driver assistance technologies in hybrid vehicles, with features like adaptive cruise control, lane-keeping assistance, and automated parking becoming standard in newer models, enhancing safety and convenience for Australian drivers while supporting the transition toward autonomous mobility.

Grab a sample PDF of this report: https://www.imarcgroup.com/australia-hybrid-vehicles-market/requestsample

Australia Hybrid Vehicles Market Trends & Drivers:

Rising fuel costs and environmental consciousness are fundamentally reshaping Australian automotive purchasing decisions and accelerating the shift toward hybrid vehicles. As of May 2025, petrol prices averaged AUD 173.8 cents per liter, down slightly from recent highs but still averaging 175.4 cents per liter since 2019, following the dramatic spike to 212.5 cents per liter in March 2022. These persistently elevated fuel prices are compelling motorists to seek alternatives that reduce long-term running costs. Hybrid sales climbed 15 percent in the first half of 2025, driven by a 27.4 percent surge in SUV sales, with the Toyota RAV4 Hybrid maintaining its position as Australia's most popular passenger model despite ongoing stock shortages. Government incentives including tax benefits and subsidies for low-emission vehicles are further encouraging adoption, while businesses and fleet operators increasingly embrace hybrids to lower operational expenses and meet sustainability commitments.

The rapid expansion of charging infrastructure is dramatically reducing range anxiety and making plug-in hybrid electric vehicles increasingly practical for Australian consumers. The New South Wales government announced a $16.1 million investment for deploying 246 fast and ultra-fast electric vehicle chargers across 38 suburbs, capable of charging vehicles from 10% to 80% in under 20 minutes. Combined with private sector funding, the total $41.1 million rollout is installing charging infrastructure at workplaces, shopping centers, and residential complexes, making hybrid ownership more convenient. In May 2025, Chery announced plans to launch its first hybrid cars in Australia in July, including the Tiggo 7 and Tiggo 8 Super Hybrid SUVs featuring 90 km electric-only range, 1,200 km total range, and DC fast charging from 30% to 80% in just 19 minutes. This infrastructure growth complements increasing availability of PHEV models from major manufacturers.

Government policy significantly influences hybrid vehicle adoption patterns, as demonstrated by market reactions to incentive changes. Plug-in hybrid sales surged to 6,944 units in March 2025 before the Fringe Benefits Tax exemption ended on March 31, then plummeted 62.5% to just 2,601 units in April 2025. Traditional hybrids remained resilient with over 111,000 units sold by mid-year, demonstrating sustained consumer interest independent of tax incentives. In 2024, Australian finance companies provided over $6 billion in funding for electric and hybrid vehicles, with 60,083 hybrids financed compared to 44,752 fully electric vehicles, reflecting practical consumer decisions favoring vehicles with petrol backup for longer distances. PHEVs now account for one in four electrified vehicle sales in Australia, with large vehicles dominating as consumers await viable electric ute alternatives.

Browse full report:
https://www.imarcgroup.com/australia-hybrid-vehicles-market

Australia Hybrid Vehicles Industry Segmentation:

The report has segmented the market into the following categories:

Hybrid Vehicle Type Insights:
• Micro-Hybrid
• Mild-Hybrid
• Full-Hybrid
• Plug-In Hybrid

Vehicle Type Insights:
• Passenger Cars
• Commercial Vehicles

Regional Breakdown:
• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

Recent News and Developments in Australia Hybrid Vehicles Market

• May 2025: Chery announced plans to launch its first hybrid cars in Australia in July, including the Tiggo 7 and Tiggo 8 Super Hybrid SUVs with 90 km electric range, 1,200 km total range, DC fast charging capability, and 255 kW combined output with 44.5% engine thermal efficiency.

• April 2025: Plug-in hybrid sales dropped 62.5% to 2,601 units following the March 31 end of Fringe Benefits Tax exemption, down from 6,944 units in March 2025, highlighting the significant impact of government incentives on consumer purchasing behavior in the price-sensitive Australian market.

• 2025: Conventional hybrid sales climbed 15% driven by 27.4% surge in SUV segment, with over 111,000 hybrids sold by mid-year and Toyota RAV4 Hybrid maintaining position as Australia's most popular passenger model despite persistent stock shortages affecting availability.

• 2024: Australian finance companies provided over $6 billion in funding for electric and hybrid vehicles, with 60,083 hybrids financed compared to 44,752 EVs, reflecting consumer preference for vehicles offering petrol backup while charging infrastructure continues developing across the country.

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.
Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

Ask analyst for customized report:
https://www.imarcgroup.com/request?type=report&id=36202&flag=E

Contact Us:
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No:(D) +91 120 433 0800
United States: +1-201971-6302

About Us:
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

This release was published on openPR.