After a dip in high-end vehicle sales last year, the market is recovering as buyers respond to rate cuts and shifts in economic conditions. Audi’s sales rose 56% in September compared to the same month last year, following gains of 22% and 45% in the two previous months. Mercedes-Benz has also posted consistent double-digit monthly growth in 2024, contributing to an almost 15% overall increase for the year.
In 2023, luxury car sales fell due to economic uncertainty. Audi dropped by 19.5% and Mercedes-Benz by 17.8%, while BMW saw a modest rise of 0.6%. However, the outlook has improved following three interest rate cuts since February, increasing property values and resilient consumer spending. These factors are drawing more buyers back into the premium car market.
Audi and Mercedes had been at the forefront of the transition to electric vehicles, planning to go fully electric in the early 2030s. Yet, a global slowdown in EV demand and economic concerns in China have altered this trajectory. A growing preference for hybrids and more traditional engines has led both makers to expand their range of petrol, diesel and hybrid options, with a focus on SUVs that remain popular in Australia.
Hybrid vehicles are experiencing particularly strong growth. Australians have bought over 195,000 hybrids in 2024, more than double the number of fully electric vehicles sold. Sales of hybrid and plug-in hybrid models surged 78% from 2023 to 2024, while EV sales increased by only 4.7%. These figures support forecasts that new energy vehicles, mostly hybrids, will account for 27.5% of total new car sales in Australia by the end of the year.
With updated vehicle lineups and inventories aligned with buyer demand, Audi and Mercedes-Benz are well placed to sustain their momentum into 2025. Their renewed emphasis on hybrid and petrol models reflects a more pragmatic approach in a market that continues to adjust to the shift towards electrification.
