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News.com.au
22-07-2025
- Automotive
- News.com.au
Huge change coming to Aussie roads
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. 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. 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. 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. 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.
Yahoo
22-07-2025
- Automotive
- Yahoo
Major warning over 2035 Chinese car tsunami for Australia: 'Tread carefully'
A new report has revealed nearly half the cars imported into Australia will be coming from China within a decade. Japan currently leads our automotive imports at 32 per cent, whereas China only has 17 per cent. But by 2035, the Asian superpower is set to dominate the market with 43 per cent of all imports, and push other automotive powerhouses like Japan, South Korea, and Thailand down massively, according to the Centre for International Economics. founder Paul Maric told Yahoo Finance this trend is set to change how our roads will look. "You're going to have some vehicles that have become so expensive that it's going to force consumers who may have been wedded to these brands to go, 'Well, I can save $15,000 by getting a Chinese vehicle that'll do the same thing as my Japanese car,'" he said. RELATED Electric vehicle warning as BYD records biggest month of sales in Australia Centrelink's 'balancing' move could provide cash boost or expose debt Common neighbour problem plaguing Aussie houses He added that some manufacturers could be forced to lower their prices to compete with this huge influx of Chinese-made cars, which would be a huge win for consumers. At the moment, a car buyer in Australia can select from 23 different brands made in China, with BYD becoming the most recently attended the Shanghai International Automobile Industry Exhibition and said there were up to 100 brands that exist in China that haven't yet made their way to Australia. "The motor show had eight of these enormous halls, and each hall had a litany of Chinese brands, most of which we've never heard of here, and they were jam-packed with people," he said. "You then went over to where the European cars were, and it was like a ghost town." At least a dozen manufacturers have announced plans or are rumoured to be bringing their vehicles to Aussie roads by the end of the year. Warning for Aussie drivers buying cars made in China The cars coming from China into Australia will still have to pass all local tests and standards, and they will be sold across the price spectrum of very cheap to very expensive. While Aussies will soon be spoilt for choice, Maric warned you shouldn't just look at price. "There's going to be a lot of cars to pick from but be careful which car you're buying, because with so many brands coming to Australia, you might buy something that's great value today, but that brand may not exist in five or 10 years time," he said. "All of a sudden, you've got a car that you can't sell, a car that you can't get parts for, and a manufacturer that has just closed up shop and disappeared. "So while there is a lot of value to be had, I would just tread carefully with what you're actually buying." He said some of these Chinese brands have only been around for a few years and might not have the staying power to remain in Australia. Others might be overwhelmed by the competition here and be forced to pull out due to lack of sales. This issue was echoed by Australian Automotive Dealer Association chief executive James Voortman. 'If we see brand departures from Australia, like we saw with Holden some time ago, that can only be bad,' he said. 'You won't have a place to service your car. You won't have a brand to honour your recall obligations. "Given that the motor vehicle is generally either the largest or second-largest purchase that a consumer makes, that is a bit concerning.' Why will Chinese-made cars become so popular in Australia? Maric explained to Yahoo Finance that in years gone by, Chinese-made cars weren't viewed very favourably in Australia. They had to compete against big names like Toyota, Ford, Mazda, and Kia, and the car expert said they also weren't made very well by comparison. But the tide has turned massively in the last few years. "We used to have this issue where people would slate Chinese cars and talk about how bad they were," Maric said. "Legally, they were unsafe and they weren't very good in terms of the way that they drove. "Today, though, it's a completely different story. They are far better value than anything from Europe. "They have way more features, and they're now just as good to drive as a lot of the cars that we're seeing from Europe and Japan." China can also produce vehicles much faster than Europe or the US. Data from the International Organization of Motor Vehicle Manufacturers found US and European manufacturers typically operate on a 200 to 216-week product development cycle. However, some Chinese manufacturers can complete their cycles in just 120 weeks. Maric said brands like Subaru, Mitsubishi, and Toyota will likely be "feeling the pinch" of this upcoming competition. He added that some Chinese brands view Australia as the perfect starting point to export their vehicles. If they do well here, then they could perform in other markets. This was backed up by BYD boss Wang Chuanfu, who recently told News Corp that "the learnings we gain from Australia help shape our products and approach globally".Error in retrieving data Sign in to access your portfolio Error in retrieving data
