Australia Luxury Car Market Report and Forecast 2025-2034

According to this report, the Australia luxury car market size witnessed a healthy growth in 2024. Aided by increasing consumer affluence, rising demand for high-end vehicles, and a growing trend towards premium and luxury automotive offerings, the market is projected to grow at a CAGR of 5.90% between 2025 and 2034.

The Australia luxury car market expansion is primarily defined by consumer demand for vehicles that offer superior quality, cutting-edge design, and advanced technology, alongside unmatched performance. In recent years, a significant shift has occurred in consumer attitudes, with an increasing number of Australians opting for premium automobiles that embody exclusivity, comfort, and innovative features. This trend is expected to continue as Australian consumers increasingly gravitate towards brands that reflect sophistication and a superior lifestyle.

Several factors are driving the growth of the Australia luxury car market. Rising household incomes, coupled with a steady economic recovery following global disruptions, have allowed more individuals to invest in higher-end vehicles. This is particularly true for the younger, affluent demographic, including millennials and Gen Z, who are becoming a major force in the market. As disposable income levels rise, more Australians are inclined to invest in luxury vehicles, which are often seen not just as a mode of transportation but as a status symbol and an expression of success and lifestyle
Technological advancements have played a central role in boosting the Australia luxury car market revenue. With consumer expectations rising, the incorporation of innovative features such as advanced driver assistance systems (ADAS), autonomous driving capabilities, electric powertrains, and connectivity enhancements has become a key differentiator for luxury car brands in Australia. For example, electric luxury vehicles (EVs) from leading manufacturers such as Tesla, Porsche, and Audi have gained increasing popularity in line with the growing environmental consciousness among Australian consumers and the global push towards sustainable automotive solutions.

As per the Australia luxury car market analysis, the market also has a strong affinity for high-performance sports cars and SUVs. Sports cars are particularly appealing to consumers who place value on the thrill of driving, cutting-edge engineering, and unparalleled performance. Meanwhile, luxury SUVs, with their combination of advanced technology, spacious interiors, and off-road capabilities, have gained immense traction in Australia’s luxury car segment. These vehicles offer premium features while also catering to the growing demand for practicality and versatility in the automotive sector.

The Australian government’s ongoing support for the electric vehicle market, including the introduction of EV incentives and infrastructure development, has further fuelled the Australia luxury car market development. This shift towards electrification is in line with broader global trends, as environmental regulations become more stringent and consumer preferences evolve towards cleaner, more energy-efficient vehicles. Several luxury car manufacturers are investing heavily in electric mobility, introducing high-end EV models that combine luxury with sustainability, helping to solidify the position of electric vehicles within Australia’s premium automotive landscape.

Another major Australia luxury car market trend is the shift towards personalisation and bespoke offerings. Modern consumers in Australia are no longer satisfied with off-the-shelf options; they seek vehicles that reflect their personal taste, preferences, and lifestyles. As such, luxury car manufacturers have placed a significant emphasis on offering tailored design elements, bespoke features, and exclusive customisation options, allowing consumers to create cars that align perfectly with their vision of luxury.

The influence of digital platforms and online car buying has also transformed the luxury car buying process in Australia. As more consumers opt for digital interactions and virtual car showrooms, automakers have adapted to this trend by enhancing their online presence, offering virtual tours, and allowing customers to complete a significant portion of the purchase journey online. The convenience of online platforms, coupled with the ability to access a wide range of vehicles and customisation options, has shaped the Australia luxury car market dynamics.

Furthermore, the increasing interest in leasing options and flexible financing is making luxury cars more accessible to a broader range of consumers. Many Australians are opting for vehicle leasing as an alternative to traditional vehicle ownership, as it allows them to drive high-end cars with lower initial costs and regular upgrades. With financing options becoming more competitive, more consumers are able to experience luxury cars without the upfront costs associated with purchasing these high-value vehicles outright. This is revolutionising the Australia luxury car market landscape.

Moreover, the premium status of luxury cars is contributing to their appeal among Australia’s high-net-worth individuals (HNWIs). With an expanding population of affluent consumers in Australia, particularly in cities like Sydney and Melbourne, there is a growing demand for premium cars that cater to the aspirations of the wealthy. Luxury vehicles are often seen as a key component of a luxury lifestyle, and many affluent Australians are increasingly investing in vehicles that complement their social status and personal image.

In conclusion, the Australia luxury car market is poised for significant growth over the forecast period. With a combination of rising affluence, technological advancements, growing interest in sustainable mobility, and a shift towards customisation and personalisation, the demand for luxury cars in Australia will continue to increase. The evolving preferences of Australian consumers, particularly younger generations, coupled with the advancements in electric vehicles and digital car buying, present exciting opportunities for manufacturers in the luxury car segment.

The market will remain highly competitive, with brands offering exclusive features and tailored solutions to meet the evolving demands of the affluent Australian consumer. As the Australian economy stabilises and income levels rise, the Australia luxury car market is expected to thrive, offering both innovative solutions and an elevated driving experience to consumers.

Market Segmentation

The market can be divided based on vehicle type, propulsion type, and region.

Market Breakup by Vehicle Type

• Hatchback
• Sedan
• Sports Utility Vehicle and Multi-Purpose Vehicles

Market Breakup by Propulsion Type

• Internal Combustion Engine (ICE)
• Electric

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia luxury car market. Some of the major players explored in the report are as follows:

• Aston Martin Lagonda Limited
• BMW Australia Ltd.
• Ferrari S.p.A
• Mercedes-Benz Australia/Pacific Pty Ltd.
• General Motors Australia and New Zealand Pty Ltd.
• Tesla Motors Australia, Pty Ltd.
• RVDA Pty Ltd.
• Porsche Cars Australia Pty Ltd.
• McLaren Automotive Limited
• Mazda Australia Pty Ltd.
• Others