Australians Plan Smaller Vehicles as Costs Rise

Research by Geely Auto Australia finds most buyers planning a purchase within two years intend to downsize.

Updated on Nov. 10, 2026 in Car Types

Australians Plan Smaller Vehicles as Costs Rise

Live Poll

Are you planning to buy a smaller vehicle than your current one?

Research released by Geely Auto Australia found 55 per cent of Australians expecting to buy, lease or choose a vehicle within two years planned to downsize. The study, conducted by dentsu Intelligence in August 2026 among 1,994 adults, points to rising living costs shaping buying decisions.

Why it matters

Regional drivers said value and running costs would become more important than vehicle size as living costs rose. The findings suggest a shift in buyer priorities toward practicality and lower ownership costs.

Seven in ten regional drivers identified higher fuel or electricity costs as a major frustration, while 72 per cent said larger vehicles were harder to navigate on local streets and in car parks. Only two in five regional drivers agreed that a bigger vehicle made them feel safer.

The players

Geely Auto Australia

Geely Auto Australia is the Australian arm of the Chinese automaker Geely, which sells passenger vehicles in the Australian market.

dentsu Intelligence

dentsu Intelligence is the research division of the global marketing services group dentsu, which conducts consumer and market research.

The details

Dentsu Intelligence surveyed 1,994 Australian adults in August 2026 on vehicle purchasing intentions. Fifty-five per cent of regional drivers pointed to the higher purchase price of larger vehicles as a frustration, and seven in ten regarded smaller cars as a smart, practical choice.

August 2026: Dentsu Intelligence conducts the vehicle research survey.
Within the next two years: Surveyed Australians expect to buy, lease or choose a vehicle.

Roadmap

The survey points to a broader shift in Australian car buying, where households weigh running costs and ease of parking more heavily than size. The result adds to a market in which buyers are reconsidering the larger vehicles that have dominated sales in recent years.

Buyers planning a purchase within two years may weigh fuel costs, purchase price and parking ease more heavily when choosing between a compact and a larger vehicle. Drivers in regional areas reported that smaller cars can simplify everyday local driving.

The takeaway

Households considering a new vehicle may find that a smaller model better matches running costs and everyday driving needs. Comparing total ownership costs before buying can help clarify which size suits daily use.