Toyota, BYD and Tesla are winning 2026, with several newcomers shooting up the charts

Deputy Editor
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Key takeaways:

  • After a slow start to 2026 traditional top-seller Toyota Australia is staging a monumental sales comeback
  • Chinese challenger BYD has been able to sustain demand for its products with sharp prices and new models
  • New car sales in the second half of 2026 will identify the new car brands at risk of local market extinction

2026 has been a watershed year for new vehicle sales in Australia, with the tsunami of new challenger brands from China continuing to pound our shores with full-force.

It’s upset the established order on the industry leaderboard, with BYD (up 115 per cent) charging into second spot through the end of July, and sending a shudder through the hallowed halls of traditional number one, Toyota Australia, and unceremoniously relegating Ford to the third step of the podium.

The rapid rise of Chery (up 71.3 per cent) and GWM (up 16.6 per cent YTD) has meant former high-ranking top 10 regulars Mazda and Hyundai have been shuffled down the order, with Mitsubishi hanging on by the skin of its teeth in tenth. 

Resurgent Tesla

A resurgent Tesla (up 88.3 per cent) sits in ninth spot, but Nissan (-33.7 per cent) and Subaru (-26.2 per cent) are out of the top 10 picture altogether.

Question is, what does this furious churn of customers mean for overall sales? Is the market likely to expand, or given its historical stability, come in close to previous years?

If it’s the latter, the financial writing could be on the wall for those legacy brands losing market share to newcomers offering fancy, typically electrified models full of bells and whistles at aggressive price points.

Toyota HiLux

So, let's start at the top. After a faltering start to the year marked by supply shortfalls of the in-demand RAV4 and HiLux, Toyota looks to be in the midst of staging a monumental comeback.

Toyota turnaround

RAV4 is still down over 25 per cent compared to the same point in 2025 and HiLux is close to 12 per cent behind, but in early June, Toyota Australia announced it had secured an additional 10,000 vehicles for 2026.

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And since then, the company said it has “worked closely with its global partners to secure further stock to help satisfy strong demand”. 

Toyota RAV4

In fact, Toyota Australia Vice President Sales, Marketing and Franchise Operations John Pappas has said, "Increased supply of key models including HiLux, RAV4, Corolla Cross and bZ4X would play a key role in Toyota passing the 230,000 sales target for 2026.”

It’s worth noting Toyota was the leader in 2025 with 239,863 sales, representing approximately 19.8 per cent of the total market.

Which means normal programming is set to resume in terms of Toyota’s numbers and the Japanese giant’s first place positioning.

The rise and rise of BYD

But what about that cheeky upstart, BYD, riding high on the back of continued demand for its Shark 6 petrol-electric hybrid ute and the surging popularity of its Sealion 7 medium EV SUV.

In fact everything from the new Atto 1 light electric hatch and Atto 2 compact EV SUV to the Sealion 5 and Sealion 8 SUVs are firing.

In terms of a 2026 prediction, all BYD has said is it “would like to be in the top three by the end of the year.” 

BYD Sealion 7

We’d suggest that’ll mean a number in excess of 80,000 units and with 2025 second and third place finishers Ford and Mazda down 10.8 and 16.7 per cent, respectively so far this year, BYD’s aspiration looks well within reach. 

A total of 103,656 new vehicles were registered in Australia in July this year, which represents a modest 0.5 per cent increase over the same month last year (103,097 units) with the overall year-to-date number down just 0.2 per cent (710,449 vs 711,908 units).

Is it a carve up?

So, all this moving and shaking in the sales order clearly isn’t shifting the needle in terms of overall sales. One brand’s loss is another brand’s gain.

The sales trend and numbers as they stand for 2026 so far point towards a year-end figure in the vicinity of 1.22 million units, which would be only fractionally up on the 1.21 million cars sold here last year.

Economics 101 says in a mature, stable market that’s invaded by a host of new competitors, something’s got to give.

Not every brand will get out of the Aussie new car sales race alive and the winners and losers over the next five months will be a telling pointer to which brands, new and not-so-new, are potentially heading towards the departure lounge longer-term.       

Australian new vehicle sales Top 10 - Year-to-date end July 2026

PositionBrandSales
1Toyota115,550
2BYD60,192
3Ford48,696
4Kia48,399
5Mazda46,960
6Hyundai45,581
7GWM34,877
8Chery29,579
9Tesla28,366
10Mitsubishi27,864

Source: VFacts / Electric Vehicle Council 

James Cleary

Deputy Editor

James serves as CarsGuide's Deputy Editor, drawing on over four decades of automotive editorial experience gained at Wheels, Drive, Carsales, Motor and Top Gear.

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