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Courier-Mail
a day ago
- Automotive
- Courier-Mail
New data shows China's major impact on Australian car imports
Don't miss out on the headlines from On the Road. Followed categories will be added to My News. A new report forecasts that China will become Australia's largest source of vehicle imports within the next decade. The report, commissioned by the Australian Automotive Dealer Association and prepared by the Centre for International Economics (CIE), projects that by 2035, 43 per cent of all vehicles imported into Australia will be manufactured in China, up from 15 per cent in 2024 and virtually zero in 2020. MORE: China ups ante in Aussie turf war Source: Australian Automotive Dealer Association/Centre for International Economics Source: Australian Automotive Dealer Association/Centre for International Economics MASSIVE SHIFT Australia's automotive landscape has dramatically shifted over the past decade with closures from multiple local manufacturing operations including Ford (2016), Holden (2017) and Toyota (2017). Since then, Australia has relied entirely on imports to meet demand for new cars, with 1.2 million vehicles sold annually – all sourced from overseas. China already dominates the local electric vehicle (EV) market, accounting for 65 per cent of Australia's Battery Electric Vehicle (BEV) imports last year. MORE: 'Can't speak': Confusion grows over car prices BYD electric cars waiting to be loaded to the automobile carrier BYD "Shenzhen". (Photo by AFP) / China But the report reveals China's growth is not confined to BEVs, but exports of internal combustion engine (ICE) and diesel vehicles, especially light commercial vehicles and SUVs, have also risen. The report states China's rapid rise is a combination of several factors, including lower production cost, rising consumer demand for low-emission vehicles, and the Federal Government's New Vehicle Efficiency Standard (NVES), which came into effect on the 1st of July. MORE: 'Jet on wheels': Luxury van's insane cost The evolution of automotive technology, particularly in drivetrain options, has been a key driver of change in Australia's import market. Picture: AADA Another enabler of China's rise is the ongoing and projected fall in real production costs. Picture: AADA The policy penalises high-emission vehicles and incentivises clear alternatives, and is expected to reshape the types of cars entering the Australian market. While most automotive exporting countries have seen rising manufacturing costs since 2017, vehicle prices from China have remained flat or declined. The Chinese government has also invested heavily in battery and EV technology, which has placed China at the forefront of manufacturing. Chinese brands like BYD are expected to take over from the likes of South Korea's Hyundai. Picture: Thomas Wielecki Australia's appetite for Chinese brands is also growing, with emerging automakers like BYD, Zeekr, XPeng, GWM, and Chery gaining market share quickly. The AADA report also highlights China's rise as part of a broader transformation in Australia's car market, driven by the end of local manufacturing, changing consumer preferences and global trade trends. Previous import booms were led by Japan in the 1990s, South Korea in the early 2000s and Thailand in the late 2000s. But China's current growth is expected to outpace them all. Originally published as Huge change coming to Aussie roads


The Advertiser
a day ago
- Automotive
- 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.


Perth Now
2 days ago
- Automotive
- 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.

AU Financial Review
2 days ago
- Automotive
- AU Financial Review
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.