China Dominates Australian New Car Market as Top Supplier
Recent sales data for the Australian new vehicle market paints a clear picture: cars manufactured in China are now the leading source of supply. For the year to date, a substantial 46,629 vehicles built in China have found Australian driveways, eclipsing traditional automotive powerhouses. This figure, compiled from information by the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council (EVC), represents a significant shift in the nation’s automotive landscape.
Trailing behind China, Japan holds the second-highest position as a vehicle supplier, with 44,614 units sold. Thailand secures third place, contributing 36,565 vehicles to the Australian market during the same period. To put this into perspective, the entire previous year saw Chinese-built vehicles make up a considerable portion of sales, accounting for 252,702 out of the 1,247,037 new cars sold across Australia.
A Surge in Chinese Automotive Influence
The ascendancy of Chinese-supplied vehicles is not a sudden development but rather a culmination of sustained growth. Over the past year, there has been a notable 31 per cent increase in vehicle supply originating from China. By the close of last year, Chinese production represented 20.3 per cent of Australia’s total new car sales. This year-to-date, that figure has climbed even higher, reaching 25.6 per cent of the 181,884 vehicles sold so far.
This expansion can be attributed to a dual-pronged strategy: new Chinese automotive brands are solidifying their presence in Australia, while established global manufacturers are increasingly looking to Chinese facilities for production. Brands like Hyundai, Kia, and Mazda, long familiar to Australian buyers, are now sourcing certain models from Chinese factories.
The Tesla Factor and Electrification
Adding a unique dimension to these figures is Tesla. Despite being an American company, the vast majority of Tesla vehicles delivered to Australia are manufactured in Shanghai. This means that a significant number of electric vehicles contributing to the “Chinese-built” tally are, in fact, Teslas. Specifically, Tesla’s Model 3 and Model Y (excluding the Model Y Performance variant) are predominantly shipped from Shanghai.
Beyond Tesla, a growing list of electric and hybrid vehicles from various brands are bolstering the Chinese supply chain. For instance, Tesla’s 3,702 Model 3 and Model Y sales contribute substantially. Other notable Chinese-built electric vehicles making their mark include:
- Kia EV5: 561 units sold year-to-date.
- Polestar: The entire Polestar range has seen 305 units sold year-to-date.
- Hyundai Elexio: A newly launched model with 172 units sold year-to-date.
Furthermore, the trend is set to continue with upcoming models like the Mazda 6e, which is slated for launch and will also be a Chinese-built offering from a non-Chinese brand.
A Shifting Brand Landscape
The journey of Chinese-branded vehicles in Australia began in earnest in 2009 with the arrival of Great Wall Motors, now known as GWM. Since then, brands like Chery, Geely, and Foton have made their appearances, some initially retreating from the market only to re-emerge in recent years with renewed vigour.
The impact of these brands is evident in the sales charts. In the full-year sales figures for last year, three Chinese brands managed to break into Australia’s top 10 overall vehicle sales:
- GWM: Secured seventh place.
- BYD: Ranked eighth.
- MG: Positioned tenth.
While GWM and BYD experienced sales growth, MG saw a slight dip in its ranking compared to previous periods.
The past year has also witnessed a significant influx of new and re-entering Chinese brands. Manufacturers such as Denza, Foton, GAC, Geely, JAC, Omoda-Jaecoo, and Zeekr have either made their debut or re-established a presence in the Australian market. This aggressive expansion and introduction of new models are directly contributing to the rising production numbers and solidifying China’s position as the dominant force in Australia’s new car supply chain.
