The premium automotive market in Australia witnessed dynamic shifts in 2023, characterised by notable changes in market shares and new trends. Tesla emerged as the dominant force with a substantial increase in sales, while other established brands experienced varying degrees of success and challenges.
For this report we’ll analyse the sales figures of the top 10 luxury automotive brands in Australia during 2023, based on VFACTS new vehicle registration figures for December.
1. Tesla: 46,116 units, +135.4% on 2022
Tesla continued its meteoric rise in Australia, solidifying its position as the top-selling premium automotive brand. The brand experienced a remarkable 135.4 per cent increase in sales, reflecting the increasing popularity of electric vehicles in this country.
Tesla’s lineup consists of just two models, the Model 3 and Model Y, which makes this feat all the more impressive. Its most popular model was the Model Y, contributing 28,769 to that total figure.
2. BMW: 26,184 units, +15.4%
BMW, a stalwart in the premium automotive segment, secured the second position with 26,184 units sold (newly registered, but we’ll call them sales). Although the growth rate was more moderate compared with some competitors, a 15.4 per cent increase indicates steady and consistent performance.
The German brand offers 23 different model lines, with the BMW X1 recording the highest figure of 4644 units, followed by the X3 with 4002 units, and then the X5 with 3682 units.
3. Mercedes-Benz: 24,315 units, -9.3%
Mercedes-Benz faced a challenging year in 2023, with a 9.3% decline in sales, landing it in the third position. The dip in numbers suggests that the brand may be grappling with market dynamics or facing increased competition, or simply dealing with supply constraints. Perhaps all three?
It sells a whopping 26 different model lines in Australia, excluding trucks and vans. The most popular model was the GLC mid-size SUV wagon, with 3631 sales (down 16 per cent), followed by the C-Class with 2625 sales (down 26.4 per cent), and then the GLE wagon with 2535 units (down 18 per cent).
4. Audi: 19,039 units, +29.2%
Audi experienced a positive growth trajectory in 2023, with an impressive 29.2 per cent increase in sales. This places Audi in a strong fourth position, reflecting the brand’s commitment to innovation and a diverse product range.
The company achieved success with only 17 model lines, with the Q3 taking the crown as the most popular model thanks to 4457 sales (down 11.7 per cent). The Q5 also recorded a decent figure of 4210 units (up 31.2 per cent), and then the A3 rounded out the top three with 3319 sales (up 57.3 per cent).
5. Lexus: 15,192 units, +114.3%
Lexus demonstrated exceptional growth with a staggering 114.3 per cent increase in sales in 2023, claiming fifth position. This remarkable surge underscores the rising demand for luxury vehicles with a focus on reliability and cutting-edge technology.
The Japanese, Toyota-owned brand sells 12 models in this country, although for some reason VFACTS still lists the LFA supercar. Its most popular model in 2023 was the NX mid-size SUV, with 6875 sales (up 104.5 per cent), followed by the RX with 2743 (up 102.9 per cent), and then the UX small SUV with 2468 (up 110.8 per cent).
6. Volvo: 11,128 units, +3.9%
Volvo maintained a solid presence in the market, with a 3.9 per cent increase in sales. While the growth rate is more conservative compared with some competitors, Volvo’s commitment to safety and sustainability likely contributed to its consistent performance.
With just six models lines available, some of these are soon to be replaced by fully electric alternatives as the brand focuses on becoming fully electric by 2025. The most popular model last year was the XC40 with 5837 sales (up 14 per cent), and then the XC60 with 2542 sales (down 26.6 per cent), and XC90 with 1299 sales (up 3.3 per cent).
7. Land Rover: 8425 units, +93.8%
Land Rover experienced a notable surge in sales, with a 93.8 per cent increase, securing it the accolade of the seventh most popular premium brand in the country. This impressive growth suggests that Land Rover’s lineup of rugged yet luxurious SUVs resonates well with Australian consumers. It will be interesting to this space in the future though, as everyone rushes to electrified powertrains: Land Rover is yet to make big steps in this field, apart from mild-hybrid stuff.
Seven models are on sale in Australia, with the Defender coming home with the outright trophy thanks to 3846 sales (up 137 per cent). The Range Rover Sport was the second favourite, reporting 2224 units (up 144.9 per cent), followed by the big Ranger Rover with 713 sales (up 436.1 per cent).
8. Porsche: 6052 units, +7.9%
Porsche, known for its high-performance sports cars and SUVs, demonstrated a moderate 7.9 per cent increase in sales in Australia in 2023. While not as dramatic as some competitors, this growth reflects Porsche’s ability to maintain a strong market position despite being quite an up-market and expensive showroom.
The most popular model in Australia in 2023 was the Macan, with 2925 sales (up 6.9 per cent), and then the Cayenne Coupe, interestingly, with 847 sales (up 17.2 per cent), rounded out by the Cayenne wagon with 699 units (down 18.5 per cent). It just goes to show coupe-style SUVs can be more popular than their regular wagon-style counterparts.
9. MINI: 4289 units, +42.9%
MINI, renowned for its compact and stylish vehicles, experienced a robust 42.9 per cent increase in sales in Australia. It has just four models to pick from, however, the Clubman was the least popular with 321 sales. The regular hatch was the favourite with 2011 sales (21.8 per cent), and then the Countryman with 1567 sales (up 62.9 per cent), and then the Cabrio with 390 sales.
10. Polestar: 2463 units, +61.6%
Polestar is a relatively new stand-alone brand, but it has been involved in Volvo’s motorsport endevours for a few years. All the more impressive is the fact it has come into Australia with just one single model line. That will soon change though with the arrival of the Polestar 3 large SUV, and the sleek new Polestar 4 (more here).
For now, the Polestar 2 recorded 2463 new registrations, and that was up a decent 61.6 per cent. It looks like it outsold its cousin, the Volvo C40 (1103 units) as well.
Overall, the premium automotive sector in Australia remains dynamic, with a promising future we reckon, especially for brands that can innovate and align with changing consumer preferences.
