Australia’s truck and van market closed 2025 with its best quarter of the year, demonstrating resilience after sustained weakness through the first three quarters. According to the Truck Industry Council (TIC), 48,617 heavy vehicles were sold during 2025, marking a 9.5% decline from 2024’s record performance but still delivering the third-best year on record.
The fourth quarter delivered 14,890 trucks and vans, down just 6.4% compared to the same period in 2024. More importantly, December posted only a 1.8% decline with 5,549 units sold, the strongest monthly comparison of the entire year and suggesting momentum heading into 2026.
This report is based on official monthly data released by TIC and covers all major categories: Heavy Duty (HD), Medium Duty (MD), Light Duty (LD), and Light Duty Van (LDV), for the full 2025 calendar year.
Fourth Quarter Performance Shows Improvement
The final three months of 2025 provided the clearest evidence that the market had stabilised after difficult first and second quarters. December’s near-flat result (down just 1.8%) marked a significant improvement from the double-digit monthly declines seen earlier in the year.
October delivered 4,663 trucks and vans, down 8.7% year-on-year. November posted 4,678 units, down 7.9% compared to November 2024. December’s 5,549 sales brought the quarterly total to 14,890 units, representing a 6.4% decline that was substantially better than the 11.2% drop recorded in Q3.
TIC CEO Tony McMullan noted the improved trajectory: “While 2025 has seen a noticeable downturn in new truck and van sales when compared to the record year of 2024, the industry has still delivered its third-best sales year. The improving trend as the year progressed, culminating in December’s strong result, provides genuine optimism for 2026.”
Segment-by-Segment Breakdown
Heavy Duty (HD): Ending the Year on a Better Note
The heavy-duty segment, which struggled most throughout 2025, showed signs of recovery in the final quarter. Q4 delivered 4,387 heavy-duty trucks, down 13.7% from Q4 2024 but representing improved monthly trends as the quarter progressed.
December heavy-duty sales reached 1,713 units, down just 4.8% year-on-year, the segment’s strongest monthly comparison since early in the year. October and November had posted steeper declines of 18.9% and 17.6% respectively, making December’s performance particularly encouraging.
Full-year heavy-duty sales totalled 14,950 units, down 15.5% from 2024’s 17,691 units. While this represents a substantial decline, the improving trend through Q4 suggests operators are becoming more comfortable committing to large capital expenditures as economic conditions stabilise.
Medium Duty (MD): Mixed Signals
Medium-duty trucks posted Q4 sales of 2,116 units, down 11.3% from Q4 2024. December contributed 789 medium-duty trucks, down 4.7% year-on-year, matching heavy-duty’s improved performance.
October saw medium-duty sales drop 15.8% while November fell 13.5%, making December’s single-digit decline a welcome improvement. The pattern across all three months suggests buyers are returning to the market, though cautiously.
Full-year medium-duty sales reached 7,392 units, down 10.8% from 2024’s 8,286 units. The segment performed better than heavy-duty on a full-year basis but still faced significant headwinds throughout 2025.
Light Duty (LD): Maintaining Resilience
Light-duty trucks demonstrated relative strength in Q4 with 4,213 units sold, down just 1.0% from Q4 2024. This marked the segment’s strongest quarterly performance of the year and vindicated earlier predictions that smaller trucks would prove more resilient than larger categories.
December light-duty sales totalled 1,534 units, up 1.3% year-on-year, one of only a few positive monthly comparisons across any segment during 2025. October posted a 1.9% decline while November fell 3.2%, but the quarter as a whole demonstrated sustained demand for light commercial vehicles.
Full-year light-duty sales reached 14,126 units, down 5.9% from 2024’s 15,010 units. This represents the smallest full-year decline of any truck category, confirming that businesses remained willing to invest in smaller commercial vehicles even while holding back on larger fleet purchases.
Light Duty Vans (LDV): Steady Performance
The van segment closed Q4 with 4,174 units sold, down 4.8% from Q4 2024. December contributed 1,513 vans, down 3.5% year-on-year, maintaining the segment’s position as the least affected by the market downturn.
October van sales fell 7.1% while November dropped 4.1%, with December’s single-digit decline consistent with the segment’s performance throughout the year. Vans continue benefiting from e-commerce growth and last-mile delivery demand that proves less sensitive to broader economic conditions than traditional trucking applications.
Full-year van sales totalled 12,149 units, down 4.9% from 2024’s 12,773 units. The segment’s relative stability throughout 2025 reflects structural demand drivers that persist regardless of economic cycles.
Alternative Power and Fuel Trends
For the first time, TIC has released a comprehensive Alternative Fuel Type report detailing low and zero emission truck and heavy van sales across 2025. This report provides additional detail beyond the Low and Zero Emission Truck Dashboard introduced on the Truck Industry Council website in mid-2025, responding to industry requests for more specific sales information about alternative powertrains.
The 2025 data reveals growing adoption of alternative power sources across the heavy vehicle market, though internal combustion engines remain dominant. Electric trucks, hybrid powertrains, and alternative fuels are making gradual inroads, particularly in urban delivery applications where range limitations matter less and emissions regulations create incentives for cleaner technology.
Light-duty trucks and vans show the strongest uptake of alternative powertrains, as shorter urban routes suit current electric vehicle technology. Heavy-duty adoption remains limited by range requirements and charging infrastructure gaps, though several manufacturers have introduced electric and hydrogen options targeting specific applications.
The new reporting framework provides transparency around Australia’s transition toward lower emission commercial vehicles, allowing industry stakeholders to track adoption rates and identify trends across different vehicle segments and applications. This data will become increasingly valuable as governments implement emissions reduction targets and businesses evaluate alternative powertrain options for their fleets.
Full Year 2025 in Context
The improving trend through the second half of 2025, culminating in December’s strong performance, provides grounds for cautious optimism about 2026. Whether this represents sustainable recovery or a temporary fluctuation will become clearer over the first quarter.
McMullan concluded: “The industry has demonstrated resilience through a challenging 2025, delivering solid sales despite the downturn from record 2024 levels. The progressive improvement through the year, particularly the strong December result, suggests we’re entering 2026 on firmer footing. While uncertainty always exists in forecasting, the fundamentals supporting heavy vehicle demand in Australia remain sound.”
The numbers support McMullan’s optimism. December’s near-flat performance, combined with improving trends across all segments in Q4, suggests the market has found its floor. Businesses that deferred truck purchases through 2025’s uncertainty may return to the market in 2026, particularly if economic conditions stabilise. The third-best year on record, achieved during a down cycle, demonstrates the underlying strength of Australian heavy vehicle demand. That foundation, combined with the momentum building through late 2025, positions the industry well for potential recovery in the year ahead.
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As 2026 unfolds, we’ll continue tracking trends across all vehicle categories and market segments throughout the year. In the meantime, be sure to read our other market reports for a complete picture of Australia’s automotive industry as we move into the new year.
Retain Media provides this data “as is” for informational purposes only and accepts no liability for decisions made based on this reporting. Users are encouraged to use this data as one of multiple data points in their market analysis.
