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Chinese car brands all the rage, and on track to dominate by 2035

Chinese car brands all the rage, and on track to dominate by 2035

Chinese brands will make up almost half of new vehicles sold in Australia within a decade in the most substantial shift in the market since Japanese manufacturers toppled Holden as the country's most popular cars.
By 2035, 43 per cent of cars imported into the country will come from China, where manufacturers are increasingly at the forefront of a shift toward electric vehicles. Chinese manufactured cars make up just 17 per cent of sales now, according to the Centre for International Economics, a research firm engaged by automotive dealers to forecast future demand.
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China set to dominate Aussie vehicle import market
China set to dominate Aussie vehicle import market

The Advertiser

timean hour ago

  • The Advertiser

China set to dominate Aussie vehicle import market

More than two in every five new cars sold in Australia will be made in China within a decade in one of the biggest shake-ups in the automotive industry in years. The move, fuelled by motorists switching to low-emission vehicles, is expected to challenge the dominance of car brands manufactured in Japan and Thailand. But automotive dealers have questioned whether the move will be wholly positive for motorists, or whether greater protections will be needed to ensure the availability of vehicle parts and servicing. The Centre for International Economics released the findings on Tuesday, in an analysis prepared for the Australian Automotive Dealer Association. The report found almost half (43 per cent) of vehicles imported to Australia could be made in China by 2035, dwarfing current leader Japan on 22 per cent, and Thailand with 11 per cent of the market. Japan-made vehicles represented 30 per cent of new cars sold in Australia this year, while Chinese vehicles made up 16 per cent, according to the Federal Chamber of Automotive Industries. The swap to Chinese vehicles will be driven by consumers' rising demand for hybrid and electric options, the report found, and falling prices offered by Chinese brands. The change was already prevalent in the Australian market, association chief executive James Voortman said, thanks to an influx of Chinese brands and models. "Australia is at an inflection point where we are going to see exponential growth of sales and new brands from China," he said. "This growth comes on top of the change to electric vehicle drive trains." Chinese electric vehicle brands already established in the country include Xpeng, Zeekr, Geely, MG and BYD, which celebrated its 60,000th local sale earlier in July. BYD considered Australia a "key market," president Wang Chuanfu said, as it was well established and highly competitive. "Success here is a signal to the world that BYD vehicles can meet and exceed the expectations of mature markets," he said. But Mr Voortman, who addressed the association's convention in Brisbane on Tuesday, said introducing so many brands to Australia should raise questions about whether consumer guarantees went far enough. "This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties," he said. "We will be talking to government about what consumer protections are adequate and appropriate." Vehicle purchases are covered by consumer guarantee rights, according to the Australian Competition and Consumer Commission, including the provision of spare parts and repairs for a reasonable time after purchase. More than two in every five new cars sold in Australia will be made in China within a decade in one of the biggest shake-ups in the automotive industry in years. The move, fuelled by motorists switching to low-emission vehicles, is expected to challenge the dominance of car brands manufactured in Japan and Thailand. But automotive dealers have questioned whether the move will be wholly positive for motorists, or whether greater protections will be needed to ensure the availability of vehicle parts and servicing. The Centre for International Economics released the findings on Tuesday, in an analysis prepared for the Australian Automotive Dealer Association. The report found almost half (43 per cent) of vehicles imported to Australia could be made in China by 2035, dwarfing current leader Japan on 22 per cent, and Thailand with 11 per cent of the market. Japan-made vehicles represented 30 per cent of new cars sold in Australia this year, while Chinese vehicles made up 16 per cent, according to the Federal Chamber of Automotive Industries. The swap to Chinese vehicles will be driven by consumers' rising demand for hybrid and electric options, the report found, and falling prices offered by Chinese brands. The change was already prevalent in the Australian market, association chief executive James Voortman said, thanks to an influx of Chinese brands and models. "Australia is at an inflection point where we are going to see exponential growth of sales and new brands from China," he said. "This growth comes on top of the change to electric vehicle drive trains." Chinese electric vehicle brands already established in the country include Xpeng, Zeekr, Geely, MG and BYD, which celebrated its 60,000th local sale earlier in July. BYD considered Australia a "key market," president Wang Chuanfu said, as it was well established and highly competitive. "Success here is a signal to the world that BYD vehicles can meet and exceed the expectations of mature markets," he said. But Mr Voortman, who addressed the association's convention in Brisbane on Tuesday, said introducing so many brands to Australia should raise questions about whether consumer guarantees went far enough. "This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties," he said. "We will be talking to government about what consumer protections are adequate and appropriate." Vehicle purchases are covered by consumer guarantee rights, according to the Australian Competition and Consumer Commission, including the provision of spare parts and repairs for a reasonable time after purchase. More than two in every five new cars sold in Australia will be made in China within a decade in one of the biggest shake-ups in the automotive industry in years. The move, fuelled by motorists switching to low-emission vehicles, is expected to challenge the dominance of car brands manufactured in Japan and Thailand. But automotive dealers have questioned whether the move will be wholly positive for motorists, or whether greater protections will be needed to ensure the availability of vehicle parts and servicing. The Centre for International Economics released the findings on Tuesday, in an analysis prepared for the Australian Automotive Dealer Association. The report found almost half (43 per cent) of vehicles imported to Australia could be made in China by 2035, dwarfing current leader Japan on 22 per cent, and Thailand with 11 per cent of the market. Japan-made vehicles represented 30 per cent of new cars sold in Australia this year, while Chinese vehicles made up 16 per cent, according to the Federal Chamber of Automotive Industries. The swap to Chinese vehicles will be driven by consumers' rising demand for hybrid and electric options, the report found, and falling prices offered by Chinese brands. The change was already prevalent in the Australian market, association chief executive James Voortman said, thanks to an influx of Chinese brands and models. "Australia is at an inflection point where we are going to see exponential growth of sales and new brands from China," he said. "This growth comes on top of the change to electric vehicle drive trains." Chinese electric vehicle brands already established in the country include Xpeng, Zeekr, Geely, MG and BYD, which celebrated its 60,000th local sale earlier in July. BYD considered Australia a "key market," president Wang Chuanfu said, as it was well established and highly competitive. "Success here is a signal to the world that BYD vehicles can meet and exceed the expectations of mature markets," he said. But Mr Voortman, who addressed the association's convention in Brisbane on Tuesday, said introducing so many brands to Australia should raise questions about whether consumer guarantees went far enough. "This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties," he said. "We will be talking to government about what consumer protections are adequate and appropriate." Vehicle purchases are covered by consumer guarantee rights, according to the Australian Competition and Consumer Commission, including the provision of spare parts and repairs for a reasonable time after purchase. More than two in every five new cars sold in Australia will be made in China within a decade in one of the biggest shake-ups in the automotive industry in years. The move, fuelled by motorists switching to low-emission vehicles, is expected to challenge the dominance of car brands manufactured in Japan and Thailand. But automotive dealers have questioned whether the move will be wholly positive for motorists, or whether greater protections will be needed to ensure the availability of vehicle parts and servicing. The Centre for International Economics released the findings on Tuesday, in an analysis prepared for the Australian Automotive Dealer Association. The report found almost half (43 per cent) of vehicles imported to Australia could be made in China by 2035, dwarfing current leader Japan on 22 per cent, and Thailand with 11 per cent of the market. Japan-made vehicles represented 30 per cent of new cars sold in Australia this year, while Chinese vehicles made up 16 per cent, according to the Federal Chamber of Automotive Industries. The swap to Chinese vehicles will be driven by consumers' rising demand for hybrid and electric options, the report found, and falling prices offered by Chinese brands. The change was already prevalent in the Australian market, association chief executive James Voortman said, thanks to an influx of Chinese brands and models. "Australia is at an inflection point where we are going to see exponential growth of sales and new brands from China," he said. "This growth comes on top of the change to electric vehicle drive trains." Chinese electric vehicle brands already established in the country include Xpeng, Zeekr, Geely, MG and BYD, which celebrated its 60,000th local sale earlier in July. BYD considered Australia a "key market," president Wang Chuanfu said, as it was well established and highly competitive. "Success here is a signal to the world that BYD vehicles can meet and exceed the expectations of mature markets," he said. But Mr Voortman, who addressed the association's convention in Brisbane on Tuesday, said introducing so many brands to Australia should raise questions about whether consumer guarantees went far enough. "This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties," he said. "We will be talking to government about what consumer protections are adequate and appropriate." Vehicle purchases are covered by consumer guarantee rights, according to the Australian Competition and Consumer Commission, including the provision of spare parts and repairs for a reasonable time after purchase.

The end of cheap Chinese cars? Government vows to end price wars
The end of cheap Chinese cars? Government vows to end price wars

The Advertiser

timean hour ago

  • The Advertiser

The end of cheap Chinese cars? Government vows to end price wars

The Chinese government has said it will take action to stem the oversupply of new vehicles in China, which it says has led to domestic price wars and "irrational competition" that is destroying the industry's profitability. The move to focus on a sustainable auto industry could put an end to cut-price Chinese cars and provide consumers with better vehicles – but at higher prices. In a state council report published last week, Chinese authorities admitted the country had an oversupply of new vehicles from its factories – something it previously denied. The claim is backed up by data which reveals a 49.1 per cent utilisation rate of the country's car-producing capability in 2024 – which still saw 31.8 million new vehicles roll out of automaking facilities in the world's largest car market last year. CarExpert can save you thousands on a new car. Click here to get a great deal. The figures put China's current car-making capacity at around 55.5 million annually – more than two-thirds of the 74.6 million vehicles sold in the entire world last year. Chinese state media published the report in which the government vowed to rein in the climate of "irrational competition" due to over-production and says it will address what it sees as a imbalance between supply and demand. The Chinese government says it will more closely monitor prices, costs and product quality across the domestic automotive supply chain – where automakers are more fixated on maintaining market share than profits, according to CNBC. Consumers have been paying less for new cars in China, where an ultra-competitive battle across the industry has driven prices down for the past three years. More cars have been sold in China each year than anywhere else in the world since 2009, when it overtook the US, with sales tripling since then. Domestic new-vehicle sales in China amounted to 33.1 million in 2024, but more than 22 million were exported to markets including Australia, which accounted for only 54,344 cars or less than 0.2 per cent of vehicles shipped overseas. The export figure may also include controversial 'zero mileage' vehicles, as part of a process which came into the spotlight after it was criticised by GWM chairman Wei Jianjun in May 2025. 'Zero-mileage cars' come from Chinese automakers who have allegedly recorded vehicles as being sold domestically – to meet local quotas – before shipping them overseas where they are sold as used cars. This is a way to inflate Chinese domestic sales figures and which has also led to reduced sticker prices (and falling profit margins), prompting GWM's public calling out of the practice which is set to be banned. Despite being consolidated from hundreds of brands previously, of the dozens of automakers in China less than a handful are currently profitable – led by BYD, Geely (which controls Volvo, Polestar, Lotus and others) and SAIC (MG, LDV and IM Motors). While it has overtaken Tesla for EV sales globally, BYD – which produces both hybrids and EVs – has cut its prices by more than one-third in China this year. When they're not accompanied by higher sales, lower prices and therefore profits can result in a reduced focus on quality, innovation, investment and, for governments, reduced tax revenue and impacts on the broader economy. The Chinese government is looking to correct the balance, given the unsustainable climate that currently exists – which is also hampered by tariffs from both the European Union (EU) and the US. While exports are a way to address overcapacity, tariffs may force Chinese automakers to expand supply chains globally, as BYD did by opening a plant in Thailand in 2024. It has also announced plans to make cars in Mexico and Brazil, while the first BYD is scheduled to roll off its new European assembly line in Hungary later this tear. More: Donald Trump to hit vehicles built outside the US with landmark tariff More: Tesla loses billion-dollar revenue source as US ditches fuel economy fines Content originally sourced from: The Chinese government has said it will take action to stem the oversupply of new vehicles in China, which it says has led to domestic price wars and "irrational competition" that is destroying the industry's profitability. The move to focus on a sustainable auto industry could put an end to cut-price Chinese cars and provide consumers with better vehicles – but at higher prices. In a state council report published last week, Chinese authorities admitted the country had an oversupply of new vehicles from its factories – something it previously denied. The claim is backed up by data which reveals a 49.1 per cent utilisation rate of the country's car-producing capability in 2024 – which still saw 31.8 million new vehicles roll out of automaking facilities in the world's largest car market last year. CarExpert can save you thousands on a new car. Click here to get a great deal. The figures put China's current car-making capacity at around 55.5 million annually – more than two-thirds of the 74.6 million vehicles sold in the entire world last year. Chinese state media published the report in which the government vowed to rein in the climate of "irrational competition" due to over-production and says it will address what it sees as a imbalance between supply and demand. The Chinese government says it will more closely monitor prices, costs and product quality across the domestic automotive supply chain – where automakers are more fixated on maintaining market share than profits, according to CNBC. Consumers have been paying less for new cars in China, where an ultra-competitive battle across the industry has driven prices down for the past three years. More cars have been sold in China each year than anywhere else in the world since 2009, when it overtook the US, with sales tripling since then. Domestic new-vehicle sales in China amounted to 33.1 million in 2024, but more than 22 million were exported to markets including Australia, which accounted for only 54,344 cars or less than 0.2 per cent of vehicles shipped overseas. The export figure may also include controversial 'zero mileage' vehicles, as part of a process which came into the spotlight after it was criticised by GWM chairman Wei Jianjun in May 2025. 'Zero-mileage cars' come from Chinese automakers who have allegedly recorded vehicles as being sold domestically – to meet local quotas – before shipping them overseas where they are sold as used cars. This is a way to inflate Chinese domestic sales figures and which has also led to reduced sticker prices (and falling profit margins), prompting GWM's public calling out of the practice which is set to be banned. Despite being consolidated from hundreds of brands previously, of the dozens of automakers in China less than a handful are currently profitable – led by BYD, Geely (which controls Volvo, Polestar, Lotus and others) and SAIC (MG, LDV and IM Motors). While it has overtaken Tesla for EV sales globally, BYD – which produces both hybrids and EVs – has cut its prices by more than one-third in China this year. When they're not accompanied by higher sales, lower prices and therefore profits can result in a reduced focus on quality, innovation, investment and, for governments, reduced tax revenue and impacts on the broader economy. The Chinese government is looking to correct the balance, given the unsustainable climate that currently exists – which is also hampered by tariffs from both the European Union (EU) and the US. While exports are a way to address overcapacity, tariffs may force Chinese automakers to expand supply chains globally, as BYD did by opening a plant in Thailand in 2024. It has also announced plans to make cars in Mexico and Brazil, while the first BYD is scheduled to roll off its new European assembly line in Hungary later this tear. More: Donald Trump to hit vehicles built outside the US with landmark tariff More: Tesla loses billion-dollar revenue source as US ditches fuel economy fines Content originally sourced from: The Chinese government has said it will take action to stem the oversupply of new vehicles in China, which it says has led to domestic price wars and "irrational competition" that is destroying the industry's profitability. The move to focus on a sustainable auto industry could put an end to cut-price Chinese cars and provide consumers with better vehicles – but at higher prices. In a state council report published last week, Chinese authorities admitted the country had an oversupply of new vehicles from its factories – something it previously denied. The claim is backed up by data which reveals a 49.1 per cent utilisation rate of the country's car-producing capability in 2024 – which still saw 31.8 million new vehicles roll out of automaking facilities in the world's largest car market last year. CarExpert can save you thousands on a new car. Click here to get a great deal. The figures put China's current car-making capacity at around 55.5 million annually – more than two-thirds of the 74.6 million vehicles sold in the entire world last year. Chinese state media published the report in which the government vowed to rein in the climate of "irrational competition" due to over-production and says it will address what it sees as a imbalance between supply and demand. The Chinese government says it will more closely monitor prices, costs and product quality across the domestic automotive supply chain – where automakers are more fixated on maintaining market share than profits, according to CNBC. Consumers have been paying less for new cars in China, where an ultra-competitive battle across the industry has driven prices down for the past three years. More cars have been sold in China each year than anywhere else in the world since 2009, when it overtook the US, with sales tripling since then. Domestic new-vehicle sales in China amounted to 33.1 million in 2024, but more than 22 million were exported to markets including Australia, which accounted for only 54,344 cars or less than 0.2 per cent of vehicles shipped overseas. The export figure may also include controversial 'zero mileage' vehicles, as part of a process which came into the spotlight after it was criticised by GWM chairman Wei Jianjun in May 2025. 'Zero-mileage cars' come from Chinese automakers who have allegedly recorded vehicles as being sold domestically – to meet local quotas – before shipping them overseas where they are sold as used cars. This is a way to inflate Chinese domestic sales figures and which has also led to reduced sticker prices (and falling profit margins), prompting GWM's public calling out of the practice which is set to be banned. Despite being consolidated from hundreds of brands previously, of the dozens of automakers in China less than a handful are currently profitable – led by BYD, Geely (which controls Volvo, Polestar, Lotus and others) and SAIC (MG, LDV and IM Motors). While it has overtaken Tesla for EV sales globally, BYD – which produces both hybrids and EVs – has cut its prices by more than one-third in China this year. When they're not accompanied by higher sales, lower prices and therefore profits can result in a reduced focus on quality, innovation, investment and, for governments, reduced tax revenue and impacts on the broader economy. The Chinese government is looking to correct the balance, given the unsustainable climate that currently exists – which is also hampered by tariffs from both the European Union (EU) and the US. While exports are a way to address overcapacity, tariffs may force Chinese automakers to expand supply chains globally, as BYD did by opening a plant in Thailand in 2024. It has also announced plans to make cars in Mexico and Brazil, while the first BYD is scheduled to roll off its new European assembly line in Hungary later this tear. More: Donald Trump to hit vehicles built outside the US with landmark tariff More: Tesla loses billion-dollar revenue source as US ditches fuel economy fines Content originally sourced from: The Chinese government has said it will take action to stem the oversupply of new vehicles in China, which it says has led to domestic price wars and "irrational competition" that is destroying the industry's profitability. The move to focus on a sustainable auto industry could put an end to cut-price Chinese cars and provide consumers with better vehicles – but at higher prices. In a state council report published last week, Chinese authorities admitted the country had an oversupply of new vehicles from its factories – something it previously denied. The claim is backed up by data which reveals a 49.1 per cent utilisation rate of the country's car-producing capability in 2024 – which still saw 31.8 million new vehicles roll out of automaking facilities in the world's largest car market last year. CarExpert can save you thousands on a new car. Click here to get a great deal. The figures put China's current car-making capacity at around 55.5 million annually – more than two-thirds of the 74.6 million vehicles sold in the entire world last year. Chinese state media published the report in which the government vowed to rein in the climate of "irrational competition" due to over-production and says it will address what it sees as a imbalance between supply and demand. The Chinese government says it will more closely monitor prices, costs and product quality across the domestic automotive supply chain – where automakers are more fixated on maintaining market share than profits, according to CNBC. Consumers have been paying less for new cars in China, where an ultra-competitive battle across the industry has driven prices down for the past three years. More cars have been sold in China each year than anywhere else in the world since 2009, when it overtook the US, with sales tripling since then. Domestic new-vehicle sales in China amounted to 33.1 million in 2024, but more than 22 million were exported to markets including Australia, which accounted for only 54,344 cars or less than 0.2 per cent of vehicles shipped overseas. The export figure may also include controversial 'zero mileage' vehicles, as part of a process which came into the spotlight after it was criticised by GWM chairman Wei Jianjun in May 2025. 'Zero-mileage cars' come from Chinese automakers who have allegedly recorded vehicles as being sold domestically – to meet local quotas – before shipping them overseas where they are sold as used cars. This is a way to inflate Chinese domestic sales figures and which has also led to reduced sticker prices (and falling profit margins), prompting GWM's public calling out of the practice which is set to be banned. Despite being consolidated from hundreds of brands previously, of the dozens of automakers in China less than a handful are currently profitable – led by BYD, Geely (which controls Volvo, Polestar, Lotus and others) and SAIC (MG, LDV and IM Motors). While it has overtaken Tesla for EV sales globally, BYD – which produces both hybrids and EVs – has cut its prices by more than one-third in China this year. When they're not accompanied by higher sales, lower prices and therefore profits can result in a reduced focus on quality, innovation, investment and, for governments, reduced tax revenue and impacts on the broader economy. The Chinese government is looking to correct the balance, given the unsustainable climate that currently exists – which is also hampered by tariffs from both the European Union (EU) and the US. While exports are a way to address overcapacity, tariffs may force Chinese automakers to expand supply chains globally, as BYD did by opening a plant in Thailand in 2024. It has also announced plans to make cars in Mexico and Brazil, while the first BYD is scheduled to roll off its new European assembly line in Hungary later this tear. More: Donald Trump to hit vehicles built outside the US with landmark tariff More: Tesla loses billion-dollar revenue source as US ditches fuel economy fines Content originally sourced from:

China set to dominate Aussie vehicle import market
China set to dominate Aussie vehicle import market

Perth Now

time3 hours ago

  • Perth Now

China set to dominate Aussie vehicle import market

More than two in every five new cars sold in Australia will be made in China within a decade in one of the biggest shake-ups in the automotive industry in years. The move, fuelled by motorists switching to low-emission vehicles, is expected to challenge the dominance of car brands manufactured in Japan and Thailand. But automotive dealers have questioned whether the move will be wholly positive for motorists, or whether greater protections will be needed to ensure the availability of vehicle parts and servicing. The Centre for International Economics released the findings on Tuesday, in an analysis prepared for the Australian Automotive Dealer Association. The report found almost half (43 per cent) of vehicles imported to Australia could be made in China by 2035, dwarfing current leader Japan on 22 per cent, and Thailand with 11 per cent of the market. Japan-made vehicles represented 30 per cent of new cars sold in Australia this year, while Chinese vehicles made up 16 per cent, according to the Federal Chamber of Automotive Industries. The swap to Chinese vehicles will be driven by consumers' rising demand for hybrid and electric options, the report found, and falling prices offered by Chinese brands. The change was already prevalent in the Australian market, association chief executive James Voortman said, thanks to an influx of Chinese brands and models. "Australia is at an inflection point where we are going to see exponential growth of sales and new brands from China," he said. "This growth comes on top of the change to electric vehicle drive trains." Chinese electric vehicle brands already established in the country include Xpeng, Zeekr, Geely, MG and BYD, which celebrated its 60,000th local sale earlier in July. BYD considered Australia a "key market," president Wang Chuanfu said, as it was well established and highly competitive. "Success here is a signal to the world that BYD vehicles can meet and exceed the expectations of mature markets," he said. But Mr Voortman, who addressed the association's convention in Brisbane on Tuesday, said introducing so many brands to Australia should raise questions about whether consumer guarantees went far enough. "This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties," he said. "We will be talking to government about what consumer protections are adequate and appropriate." Vehicle purchases are covered by consumer guarantee rights, according to the Australian Competition and Consumer Commission, including the provision of spare parts and repairs for a reasonable time after purchase.

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