The onslaught of new automotive brands in Australia appears as if it may be having a tangible impact on established automakers.
Despite being one of Australia’s most popular manufacturers for decades, sales of Toyota motor vehicles have dropped by 30.7 per cent year-on-year, according to VFACTS data released yesterday by the Federal Chamber of Automotive Industries (FCAI).
Since the beginning of 2026, Toyota has seen new-vehicle deliveries drop by almost 25 per cent in the Australian market.
However, the Japanese car giant is blaming supply issues for the lower numbers, and says demand remains strong.
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While the RAV4 remains one of Australia’s favourite vehicles – sitting in fourth in May, behind only the Tesla Model Y, Ford Ranger and Toyota HiLux – other models in the Toyota stable appear to be falling out of favour among buyers.
VFACTS data from May also shows the LandCruiser down 38.1 per cent year-on-year (inclusive of both 300 Series and older 70 Series wagons), and its slightly smaller sibling, the LandCruiser Prado, down 63.9 per cent year-on-year.
“The Prado May result reflects lower supply on this very popular model,” a spokesperson for Toyota Australia told CarExpert.
“At a factory level, there was a change in the exterior black paint from Onyx Night to Eclipse Black. We anticipate further stock arriving in the coming months.”
Compared to the first five months of 2025, Prado sales are down 45 per cent, though the LandCruiser 300 Series and 70 Series wagon tally is up 29.3 per cent.
Toyota is also pointing to supply issues for downward sales trends on the Yaris, Yaris Cross, and Kluger.
The Yaris was down 50.8 per cent in May and 44.4 per cent year-to-date, while the Yaris Cross was down 41.0 per cent and 31.7 per cent respectively and the Kluger down 70.7 per cent and 39.9 per cent.
Meanwhile, LandCruiser 70 Series utes have seen a decline of 82.3 per cent, year-on-year – possibly due to the introduction of the Ford Ranger Super Duty.
Despite being the third-most popular vehicle in Australia this month, the Toyota HiLux has still been affected, with a 19.1 per cent drop year-on-year – even with a 41.3 per cent jump in sales between April and May.
Toyota has been Australia’s top-selling car brand for the past 23 consecutive years, taking over from Holden in 2003.
It was 2024 when Toyota marked its highest sales volume, with almost 241,300 of its vehicles finding homes in Australian driveways – with results just shy of 240,000 in both 2025 and 2008.
Earlier this week – as BYD celebrated the arrival of almost 5000 new BYD and Denza vehicles to our shores – Toyota Australia announced it had secured an additional 10,000 vehicles for the local market.
At the same time, Toyota also increased its sales forecast for the 2026 calendar year, to 220,000 – an expected drop of 8.3 per cent.
“Toyota has been part of Australian communities for almost seventy years, and we continue to see strong demand from customers who rely on us for their mobility needs,” said John Pappas, Toyota Australia’s vice president of sales and marketing.
“Vehicles like HiLux remain essential for many Australians, while RAV4 continues to lead the SUV segment thanks to its versatility, drivability and efficiency,” he said in a written statement issued on Tuesday.
“We will continue working closely with our global production teams to secure additional supply where possible and ensure we are meeting the needs of Australian customers today and into the future.”