Latest news with #AADA
The Advertiser
7 days ago
- Automotive
- The Advertiser
China to become top source of new cars in Australia, fuelled by emissions regs
China has already overtaken Korea to become Australia's third largest supplier of new vehicles, and a new report says it'll take the top spot by 2035. The Australian Automotive Dealer Association (AADA) commissioned the Centre for International Economics (CIE) to analyse Australia's past, current and future automotive trading partners. The CIE has projected Chinese-built vehicles will account for 43 per cent of Australia's new-car market in 2035, up from 17 per cent this year. This will come at the expense of Japanese-built cars, whose share is projected to drop from 32 to 22 per cent, as well as Thai-built vehicles (11 per cent, down from 21 per cent) and Korean-built vehicles (8 per cent, down from 13 per cent). The CIE forecasts other countries of origin will account for the remaining 16 per cent of the market, down from 17 per cent in 2025. CarExpert can save you thousands on a new car. Click here to get a great deal. China already dominates the local electric vehicle (EV) market, accounting for 65 per cent of imports. But it's not just EVs powering its growth here, with exports of combustion-powered vehicles also rising. Enabling China's rise, the report says, is the Chinese government's investment and support in developing EV and plug-in hybrid (PHEV) technology and manufacturing capabilities; an ongoing drop in production costs; as well as an aversion to price increases like those imposed by brands from other countries. But the AADA warns the Australian Government is inadvertently boosting sales of Chinese cars in our market through its New Vehicle Efficiency Standard (NVES). "While overall sales from many countries are still projected to grow, China stands out and is set to benefit the most from the introduction of the NVES," the AADA says in its report. "Its strong position in EV manufacturing, supported by supply chain advantages and government backing, means vehicles produced in China are expected to gain market share at a faster rate, in contrast to the slower grow other exporting countries may observe. "This low emissions transition highlights a broader structural shift. As emission standards tighten, supply chains globalise and EV technology dominates, China is set to play an increasingly central role in Australia's automotive future and redefine our automotive landscape." The AADA says in its report that the findings are based on an assumption NVES fleet emissions reductions will continue past the legislated 2029 target. Coming into effect on January 1, 2025, with penalties being accrued from July 1, the NVES sets fleet-wide emissions targets for new-vehicle brands in Australia. If automakers exceed an average carbon emissions target for the vehicles they sell each year, they will be penalised $100 per g/km of CO2 for every vehicle which exceeds the target. For 2025, the mandate for passenger cars (Type 1) is 141g/km of CO2, with light commercial vehicles and heavy-duty SUVs (Type 2) set at 210g/km or less. These limits will get tighter every year, landing at 58 and 110g/km respectively in 2029. Chinese auto brands have been among the quickest and most aggressive in rolling out EVs and PHEVs in our market to cater to buyer demand and also meet these emissions standards. BYD only offers these powertrain types globally, while Chery, GWM and MG all offer a mix of hybrid, PHEV and EV models, and fledgling brands like Deepal and Xpeng are EV-only here. It isn't just Chinese-owned brands, including Volvo and Polestar, that are selling Chinese-built vehicles here. BMW, Cupra, Kia and Tesla all produce vehicles in China and export them to markets such as Australia, and they could be joined in the coming years by others such as Mazda and Nissan. It has been a meteoric rise for China, and follows the rise of Thailand, Korea and Japan in our market. There are parallels here beyond dramatic sales growth. Many of the first Korean and Japanese cars sold here were widely regarded as being flawed or ill-suited to our market, but manufacturers like Hyundai and Toyota were able to over time adapt to our market conditions and offer more suitable vehicles. Chinese brands have invested in local vehicle development testing in our market, but GWM is perhaps a standout example of tailoring vehicles to Australian conditions, having appointed Holden's former lead vehicle dynamics engineer as its local ride and handling expert. Many Chinese brands have set ambitious goals for our market. MG wants to be a top-three player in Australia by 2030, while GWM is also aiming to be in the top five by that year. Content originally sourced from: China has already overtaken Korea to become Australia's third largest supplier of new vehicles, and a new report says it'll take the top spot by 2035. The Australian Automotive Dealer Association (AADA) commissioned the Centre for International Economics (CIE) to analyse Australia's past, current and future automotive trading partners. The CIE has projected Chinese-built vehicles will account for 43 per cent of Australia's new-car market in 2035, up from 17 per cent this year. This will come at the expense of Japanese-built cars, whose share is projected to drop from 32 to 22 per cent, as well as Thai-built vehicles (11 per cent, down from 21 per cent) and Korean-built vehicles (8 per cent, down from 13 per cent). The CIE forecasts other countries of origin will account for the remaining 16 per cent of the market, down from 17 per cent in 2025. CarExpert can save you thousands on a new car. Click here to get a great deal. China already dominates the local electric vehicle (EV) market, accounting for 65 per cent of imports. But it's not just EVs powering its growth here, with exports of combustion-powered vehicles also rising. Enabling China's rise, the report says, is the Chinese government's investment and support in developing EV and plug-in hybrid (PHEV) technology and manufacturing capabilities; an ongoing drop in production costs; as well as an aversion to price increases like those imposed by brands from other countries. But the AADA warns the Australian Government is inadvertently boosting sales of Chinese cars in our market through its New Vehicle Efficiency Standard (NVES). "While overall sales from many countries are still projected to grow, China stands out and is set to benefit the most from the introduction of the NVES," the AADA says in its report. "Its strong position in EV manufacturing, supported by supply chain advantages and government backing, means vehicles produced in China are expected to gain market share at a faster rate, in contrast to the slower grow other exporting countries may observe. "This low emissions transition highlights a broader structural shift. As emission standards tighten, supply chains globalise and EV technology dominates, China is set to play an increasingly central role in Australia's automotive future and redefine our automotive landscape." The AADA says in its report that the findings are based on an assumption NVES fleet emissions reductions will continue past the legislated 2029 target. Coming into effect on January 1, 2025, with penalties being accrued from July 1, the NVES sets fleet-wide emissions targets for new-vehicle brands in Australia. If automakers exceed an average carbon emissions target for the vehicles they sell each year, they will be penalised $100 per g/km of CO2 for every vehicle which exceeds the target. For 2025, the mandate for passenger cars (Type 1) is 141g/km of CO2, with light commercial vehicles and heavy-duty SUVs (Type 2) set at 210g/km or less. These limits will get tighter every year, landing at 58 and 110g/km respectively in 2029. Chinese auto brands have been among the quickest and most aggressive in rolling out EVs and PHEVs in our market to cater to buyer demand and also meet these emissions standards. BYD only offers these powertrain types globally, while Chery, GWM and MG all offer a mix of hybrid, PHEV and EV models, and fledgling brands like Deepal and Xpeng are EV-only here. It isn't just Chinese-owned brands, including Volvo and Polestar, that are selling Chinese-built vehicles here. BMW, Cupra, Kia and Tesla all produce vehicles in China and export them to markets such as Australia, and they could be joined in the coming years by others such as Mazda and Nissan. It has been a meteoric rise for China, and follows the rise of Thailand, Korea and Japan in our market. There are parallels here beyond dramatic sales growth. Many of the first Korean and Japanese cars sold here were widely regarded as being flawed or ill-suited to our market, but manufacturers like Hyundai and Toyota were able to over time adapt to our market conditions and offer more suitable vehicles. Chinese brands have invested in local vehicle development testing in our market, but GWM is perhaps a standout example of tailoring vehicles to Australian conditions, having appointed Holden's former lead vehicle dynamics engineer as its local ride and handling expert. Many Chinese brands have set ambitious goals for our market. MG wants to be a top-three player in Australia by 2030, while GWM is also aiming to be in the top five by that year. Content originally sourced from: China has already overtaken Korea to become Australia's third largest supplier of new vehicles, and a new report says it'll take the top spot by 2035. The Australian Automotive Dealer Association (AADA) commissioned the Centre for International Economics (CIE) to analyse Australia's past, current and future automotive trading partners. The CIE has projected Chinese-built vehicles will account for 43 per cent of Australia's new-car market in 2035, up from 17 per cent this year. This will come at the expense of Japanese-built cars, whose share is projected to drop from 32 to 22 per cent, as well as Thai-built vehicles (11 per cent, down from 21 per cent) and Korean-built vehicles (8 per cent, down from 13 per cent). The CIE forecasts other countries of origin will account for the remaining 16 per cent of the market, down from 17 per cent in 2025. CarExpert can save you thousands on a new car. Click here to get a great deal. China already dominates the local electric vehicle (EV) market, accounting for 65 per cent of imports. But it's not just EVs powering its growth here, with exports of combustion-powered vehicles also rising. Enabling China's rise, the report says, is the Chinese government's investment and support in developing EV and plug-in hybrid (PHEV) technology and manufacturing capabilities; an ongoing drop in production costs; as well as an aversion to price increases like those imposed by brands from other countries. But the AADA warns the Australian Government is inadvertently boosting sales of Chinese cars in our market through its New Vehicle Efficiency Standard (NVES). "While overall sales from many countries are still projected to grow, China stands out and is set to benefit the most from the introduction of the NVES," the AADA says in its report. "Its strong position in EV manufacturing, supported by supply chain advantages and government backing, means vehicles produced in China are expected to gain market share at a faster rate, in contrast to the slower grow other exporting countries may observe. "This low emissions transition highlights a broader structural shift. As emission standards tighten, supply chains globalise and EV technology dominates, China is set to play an increasingly central role in Australia's automotive future and redefine our automotive landscape." The AADA says in its report that the findings are based on an assumption NVES fleet emissions reductions will continue past the legislated 2029 target. Coming into effect on January 1, 2025, with penalties being accrued from July 1, the NVES sets fleet-wide emissions targets for new-vehicle brands in Australia. If automakers exceed an average carbon emissions target for the vehicles they sell each year, they will be penalised $100 per g/km of CO2 for every vehicle which exceeds the target. For 2025, the mandate for passenger cars (Type 1) is 141g/km of CO2, with light commercial vehicles and heavy-duty SUVs (Type 2) set at 210g/km or less. These limits will get tighter every year, landing at 58 and 110g/km respectively in 2029. Chinese auto brands have been among the quickest and most aggressive in rolling out EVs and PHEVs in our market to cater to buyer demand and also meet these emissions standards. BYD only offers these powertrain types globally, while Chery, GWM and MG all offer a mix of hybrid, PHEV and EV models, and fledgling brands like Deepal and Xpeng are EV-only here. It isn't just Chinese-owned brands, including Volvo and Polestar, that are selling Chinese-built vehicles here. BMW, Cupra, Kia and Tesla all produce vehicles in China and export them to markets such as Australia, and they could be joined in the coming years by others such as Mazda and Nissan. It has been a meteoric rise for China, and follows the rise of Thailand, Korea and Japan in our market. There are parallels here beyond dramatic sales growth. Many of the first Korean and Japanese cars sold here were widely regarded as being flawed or ill-suited to our market, but manufacturers like Hyundai and Toyota were able to over time adapt to our market conditions and offer more suitable vehicles. Chinese brands have invested in local vehicle development testing in our market, but GWM is perhaps a standout example of tailoring vehicles to Australian conditions, having appointed Holden's former lead vehicle dynamics engineer as its local ride and handling expert. Many Chinese brands have set ambitious goals for our market. MG wants to be a top-three player in Australia by 2030, while GWM is also aiming to be in the top five by that year. Content originally sourced from: China has already overtaken Korea to become Australia's third largest supplier of new vehicles, and a new report says it'll take the top spot by 2035. The Australian Automotive Dealer Association (AADA) commissioned the Centre for International Economics (CIE) to analyse Australia's past, current and future automotive trading partners. The CIE has projected Chinese-built vehicles will account for 43 per cent of Australia's new-car market in 2035, up from 17 per cent this year. This will come at the expense of Japanese-built cars, whose share is projected to drop from 32 to 22 per cent, as well as Thai-built vehicles (11 per cent, down from 21 per cent) and Korean-built vehicles (8 per cent, down from 13 per cent). The CIE forecasts other countries of origin will account for the remaining 16 per cent of the market, down from 17 per cent in 2025. CarExpert can save you thousands on a new car. Click here to get a great deal. China already dominates the local electric vehicle (EV) market, accounting for 65 per cent of imports. But it's not just EVs powering its growth here, with exports of combustion-powered vehicles also rising. Enabling China's rise, the report says, is the Chinese government's investment and support in developing EV and plug-in hybrid (PHEV) technology and manufacturing capabilities; an ongoing drop in production costs; as well as an aversion to price increases like those imposed by brands from other countries. But the AADA warns the Australian Government is inadvertently boosting sales of Chinese cars in our market through its New Vehicle Efficiency Standard (NVES). "While overall sales from many countries are still projected to grow, China stands out and is set to benefit the most from the introduction of the NVES," the AADA says in its report. "Its strong position in EV manufacturing, supported by supply chain advantages and government backing, means vehicles produced in China are expected to gain market share at a faster rate, in contrast to the slower grow other exporting countries may observe. "This low emissions transition highlights a broader structural shift. As emission standards tighten, supply chains globalise and EV technology dominates, China is set to play an increasingly central role in Australia's automotive future and redefine our automotive landscape." The AADA says in its report that the findings are based on an assumption NVES fleet emissions reductions will continue past the legislated 2029 target. Coming into effect on January 1, 2025, with penalties being accrued from July 1, the NVES sets fleet-wide emissions targets for new-vehicle brands in Australia. If automakers exceed an average carbon emissions target for the vehicles they sell each year, they will be penalised $100 per g/km of CO2 for every vehicle which exceeds the target. For 2025, the mandate for passenger cars (Type 1) is 141g/km of CO2, with light commercial vehicles and heavy-duty SUVs (Type 2) set at 210g/km or less. These limits will get tighter every year, landing at 58 and 110g/km respectively in 2029. Chinese auto brands have been among the quickest and most aggressive in rolling out EVs and PHEVs in our market to cater to buyer demand and also meet these emissions standards. BYD only offers these powertrain types globally, while Chery, GWM and MG all offer a mix of hybrid, PHEV and EV models, and fledgling brands like Deepal and Xpeng are EV-only here. It isn't just Chinese-owned brands, including Volvo and Polestar, that are selling Chinese-built vehicles here. BMW, Cupra, Kia and Tesla all produce vehicles in China and export them to markets such as Australia, and they could be joined in the coming years by others such as Mazda and Nissan. It has been a meteoric rise for China, and follows the rise of Thailand, Korea and Japan in our market. There are parallels here beyond dramatic sales growth. Many of the first Korean and Japanese cars sold here were widely regarded as being flawed or ill-suited to our market, but manufacturers like Hyundai and Toyota were able to over time adapt to our market conditions and offer more suitable vehicles. Chinese brands have invested in local vehicle development testing in our market, but GWM is perhaps a standout example of tailoring vehicles to Australian conditions, having appointed Holden's former lead vehicle dynamics engineer as its local ride and handling expert. Many Chinese brands have set ambitious goals for our market. MG wants to be a top-three player in Australia by 2030, while GWM is also aiming to be in the top five by that year. Content originally sourced from:
7NEWS
7 days ago
- Automotive
- 7NEWS
China to become top source of new cars in Australia, fuelled by emissions regs
China has already overtaken Korea to become Australia's third largest supplier of new vehicles, and a new report says it'll take the top spot by 2035. The Australian Automotive Dealer Association (AADA) commissioned the Centre for International Economics (CIE) to analyse Australia's past, current and future automotive trading partners. The CIE has projected Chinese-built vehicles will account for 43 per cent of Australia's new-car market in 2035, up from 17 per cent this year. This will come at the expense of Japanese-built cars, whose share is projected to drop from 32 to 22 per cent, as well as Thai-built vehicles (11 per cent, down from 21 per cent) and Korean-built vehicles (8 per cent, down from 13 per cent). The CIE forecasts other countries of origin will account for the remaining 16 per cent of the market, down from 17 per cent in 2025. CarExpert can save you thousands on a new car. Click here to get a great deal. China already dominates the local electric vehicle (EV) market, accounting for 65 per cent of imports. But it's not just EVs powering its growth here, with exports of combustion-powered vehicles also rising. Enabling China's rise, the report says, is the Chinese government's investment and support in developing EV and plug-in hybrid (PHEV) technology and manufacturing capabilities; an ongoing drop in production costs; as well as an aversion to price increases like those imposed by brands from other countries. But the AADA warns the Australian Government is inadvertently boosting sales of Chinese cars in our market through its New Vehicle Efficiency Standard (NVES). 'While overall sales from many countries are still projected to grow, China stands out and is set to benefit the most from the introduction of the NVES,' the AADA says in its report. 'Its strong position in EV manufacturing, supported by supply chain advantages and government backing, means vehicles produced in China are expected to gain market share at a faster rate, in contrast to the slower grow other exporting countries may observe. 'This low emissions transition highlights a broader structural shift. As emission standards tighten, supply chains globalise and EV technology dominates, China is set to play an increasingly central role in Australia's automotive future and redefine our automotive landscape.' The AADA says in its report that the findings are based on an assumption NVES fleet emissions reductions will continue past the legislated 2029 target. Coming into effect on January 1, 2025, with penalties being accrued from July 1, the NVES sets fleet-wide emissions targets for new-vehicle brands in Australia. If automakers exceed an average carbon emissions target for the vehicles they sell each year, they will be penalised $100 per g/km of CO2 for every vehicle which exceeds the target. For 2025, the mandate for passenger cars (Type 1) is 141g/km of CO2, with light commercial vehicles and heavy-duty SUVs (Type 2) set at 210g/km or less. These limits will get tighter every year, landing at 58 and 110g/km respectively in 2029. Chinese auto brands have been among the quickest and most aggressive in rolling out EVs and PHEVs in our market to cater to buyer demand and also meet these emissions standards. BYD only offers these powertrain types globally, while Chery, GWM and MG all offer a mix of hybrid, PHEV and EV models, and fledgling brands like Deepal and Xpeng are EV-only here. It isn't just Chinese-owned brands, including Volvo and Polestar, that are selling Chinese-built vehicles here. BMW, Cupra, Kia and Tesla all produce vehicles in China and export them to markets such as Australia, and they could be joined in the coming years by others such as Mazda and Nissan. It has been a meteoric rise for China, and follows the rise of Thailand, Korea and Japan in our market. There are parallels here beyond dramatic sales growth. Many of the first Korean and Japanese cars sold here were widely regarded as being flawed or ill-suited to our market, but manufacturers like Hyundai and Toyota were able to over time adapt to our market conditions and offer more suitable vehicles. Chinese brands have invested in local vehicle development testing in our market, but GWM is perhaps a standout example of tailoring vehicles to Australian conditions, having appointed Holden's former lead vehicle dynamics engineer as its local ride and handling expert.
Perth Now
7 days ago
- Automotive
- Perth Now
China to become top source of new cars in Australia, fuelled by emissions regs
China has already overtaken Korea to become Australia's third largest supplier of new vehicles, and a new report says it'll take the top spot by 2035. The Australian Automotive Dealer Association (AADA) commissioned the Centre for International Economics (CIE) to analyse Australia's past, current and future automotive trading partners. The CIE has projected Chinese-built vehicles will account for 43 per cent of Australia's new-car market in 2035, up from 17 per cent this year. This will come at the expense of Japanese-built cars, whose share is projected to drop from 32 to 22 per cent, as well as Thai-built vehicles (11 per cent, down from 21 per cent) and Korean-built vehicles (8 per cent, down from 13 per cent). The CIE forecasts other countries of origin will account for the remaining 16 per cent of the market, down from 17 per cent in 2025. CarExpert can save you thousands on a new car. Click here to get a great deal. Supplied Credit: CarExpert China already dominates the local electric vehicle (EV) market, accounting for 65 per cent of imports. But it's not just EVs powering its growth here, with exports of combustion-powered vehicles also rising. Enabling China's rise, the report says, is the Chinese government's investment and support in developing EV and plug-in hybrid (PHEV) technology and manufacturing capabilities; an ongoing drop in production costs; as well as an aversion to price increases like those imposed by brands from other countries. But the AADA warns the Australian Government is inadvertently boosting sales of Chinese cars in our market through its New Vehicle Efficiency Standard (NVES). 'While overall sales from many countries are still projected to grow, China stands out and is set to benefit the most from the introduction of the NVES,' the AADA says in its report. Supplied Credit: CarExpert 'Its strong position in EV manufacturing, supported by supply chain advantages and government backing, means vehicles produced in China are expected to gain market share at a faster rate, in contrast to the slower grow other exporting countries may observe. 'This low emissions transition highlights a broader structural shift. As emission standards tighten, supply chains globalise and EV technology dominates, China is set to play an increasingly central role in Australia's automotive future and redefine our automotive landscape.' The AADA says in its report that the findings are based on an assumption NVES fleet emissions reductions will continue past the legislated 2029 target. Coming into effect on January 1, 2025, with penalties being accrued from July 1, the NVES sets fleet-wide emissions targets for new-vehicle brands in Australia. Supplied Credit: CarExpert If automakers exceed an average carbon emissions target for the vehicles they sell each year, they will be penalised $100 per g/km of CO2 for every vehicle which exceeds the target. For 2025, the mandate for passenger cars (Type 1) is 141g/km of CO2, with light commercial vehicles and heavy-duty SUVs (Type 2) set at 210g/km or less. These limits will get tighter every year, landing at 58 and 110g/km respectively in 2029. Chinese auto brands have been among the quickest and most aggressive in rolling out EVs and PHEVs in our market to cater to buyer demand and also meet these emissions standards. Supplied Credit: CarExpert BYD only offers these powertrain types globally, while Chery, GWM and MG all offer a mix of hybrid, PHEV and EV models, and fledgling brands like Deepal and Xpeng are EV-only here. It isn't just Chinese-owned brands, including Volvo and Polestar, that are selling Chinese-built vehicles here. BMW, Cupra, Kia and Tesla all produce vehicles in China and export them to markets such as Australia, and they could be joined in the coming years by others such as Mazda and Nissan. It has been a meteoric rise for China, and follows the rise of Thailand, Korea and Japan in our market. Supplied Credit: CarExpert There are parallels here beyond dramatic sales growth. Many of the first Korean and Japanese cars sold here were widely regarded as being flawed or ill-suited to our market, but manufacturers like Hyundai and Toyota were able to over time adapt to our market conditions and offer more suitable vehicles. Chinese brands have invested in local vehicle development testing in our market, but GWM is perhaps a standout example of tailoring vehicles to Australian conditions, having appointed Holden's former lead vehicle dynamics engineer as its local ride and handling expert. Many Chinese brands have set ambitious goals for our market. MG wants to be a top-three player in Australia by 2030, while GWM is also aiming to be in the top five by that year.
7NEWS
09-07-2025
- Automotive
- 7NEWS
Australian car dealers lose again as court rules in favour of Mercedes-Benz
The head of the peak body for car dealers in Australia has slammed a Federal Court appeal decision that found in favour of Mercedes-Benz over dealers unhappy with its move to an agency sales model. The Federal Court has dismissed an appeal, filed in 2024, against a judgement it handed down in 2023. In that ruling, where it found in favour of Mercedes-Benz Australia Pacific over a majority (38 of 50) of its franchised dealers, the Court found dealers hadn't been misled about the agency move and that Mercedes-Benz hadn't engaged in unconscionable conduct. The Australian Automotive Dealer Association (AADA) said it's 'bitterly disappointed' by today's decision, particularly as it follows the Supreme Court of Victoria's ruling earlier this year which found General Motors didn't breach its agreement with Australian dealers when it axed the Holden brand in 2020. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It's pushing for the Federal Government to introduce additional protections for automotive franchisees 'so that the blueprint created by this court decision is not used by others'. 'We welcome the decision of the Full Court of the Federal Court in this matter. Our focus continues to be on delivering luxury products and services for our valued customers around Australia,' said a spokesperson for Mercedes-Benz. At the heart of the original case, which commenced in October 2021, was the compensation Mercedes-Benz offered to dealers, although Justice Beach indicated Australian franchise law may once again need to be revisited and potentially modified. 'Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today's decision is a significant blow to that fight which will have detrimental effects on Australia's franchising sector,' said AADA CEO James Voortman. 'In handing down today's decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation. 'The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses. 'Today's decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. 'It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices.' The move to an agency retail model resulted in Mercedes-Benz taking ownership of dealership stock, and removing the ability for customers and dealership staff to negotiate on prices – a change which dealers claimed would drive up prices of new models. At the time of the initial court action, the 38 dealers were pursuing approximately $650 million in compensation. Mercedes-Benz isn't the only auto brand to switch to an agency model in Australia, with Honda also doing the same – also resulting in legal action from some of its dealers. Like Honda, Mercedes-Benz experienced a sales downturn after the switch in January 2022. Deliveries of vehicles from its Cars division fell from 28,348 in 2021 to 26,801 in 2022, before dropping again in 2023 to 24,315 and then 19,989 in 2024. But there's light at the end of the tunnel, it would appear, with deliveries in the first half of 2025 up 15.9 per cent on the same period last year to 11,146 in total – its best first-half of a year since 2023.
The Advertiser
09-07-2025
- Automotive
- The Advertiser
Australian car dealers lose again as court rules in favour of Mercedes-Benz
The head of the peak body for car dealers in Australia has slammed a Federal Court appeal decision that found in favour of Mercedes-Benz over dealers unhappy with its move to an agency sales model. The Federal Court has dismissed an appeal, filed in 2024, against a judgement it handed down in 2023. In that ruling, where it found in favour of Mercedes-Benz Australia Pacific over a majority (38 of 50) of its franchised dealers, the Court found dealers hadn't been misled about the agency move and that Mercedes-Benz hadn't engaged in unconscionable conduct. The Australian Automotive Dealer Association (AADA) said it's "bitterly disappointed" by today's decision, particularly as it follows the Supreme Court of Victoria's ruling earlier this year which found General Motors didn't breach its agreement with Australian dealers when it axed the Holden brand in 2020. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It's pushing for the Federal Government to introduce additional protections for automotive franchisees "so that the blueprint created by this court decision is not used by others". "We welcome the decision of the Full Court of the Federal Court in this matter. Our focus continues to be on delivering luxury products and services for our valued customers around Australia," said a spokesperson for Mercedes-Benz. At the heart of the original case, which commenced in October 2021, was the compensation Mercedes-Benz offered to dealers, although Justice Beach indicated Australian franchise law may once again need to be revisited and potentially modified. "Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today's decision is a significant blow to that fight which will have detrimental effects on Australia's franchising sector," said AADA CEO James Voortman. "In handing down today's decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation. "The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses. "Today's decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. "It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices." The move to an agency retail model resulted in Mercedes-Benz taking ownership of dealership stock, and removing the ability for customers and dealership staff to negotiate on prices – a change which dealers claimed would drive up prices of new models. At the time of the initial court action, the 38 dealers were pursuing approximately $650 million in compensation. Mercedes-Benz isn't the only auto brand to switch to an agency model in Australia, with Honda also doing the same – also resulting in legal action from some of its dealers. Like Honda, Mercedes-Benz experienced a sales downturn after the switch in January 2022. Deliveries of vehicles from its Cars division fell from 28,348 in 2021 to 26,801 in 2022, before dropping again in 2023 to 24,315 and then 19,989 in 2024. But there's light at the end of the tunnel, it would appear, with deliveries in the first half of 2025 up 15.9 per cent on the same period last year to 11,146 in total – its best first-half of a year since 2023. MORE: Everything Mercedes-Benz Content originally sourced from: The head of the peak body for car dealers in Australia has slammed a Federal Court appeal decision that found in favour of Mercedes-Benz over dealers unhappy with its move to an agency sales model. The Federal Court has dismissed an appeal, filed in 2024, against a judgement it handed down in 2023. In that ruling, where it found in favour of Mercedes-Benz Australia Pacific over a majority (38 of 50) of its franchised dealers, the Court found dealers hadn't been misled about the agency move and that Mercedes-Benz hadn't engaged in unconscionable conduct. The Australian Automotive Dealer Association (AADA) said it's "bitterly disappointed" by today's decision, particularly as it follows the Supreme Court of Victoria's ruling earlier this year which found General Motors didn't breach its agreement with Australian dealers when it axed the Holden brand in 2020. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It's pushing for the Federal Government to introduce additional protections for automotive franchisees "so that the blueprint created by this court decision is not used by others". "We welcome the decision of the Full Court of the Federal Court in this matter. Our focus continues to be on delivering luxury products and services for our valued customers around Australia," said a spokesperson for Mercedes-Benz. At the heart of the original case, which commenced in October 2021, was the compensation Mercedes-Benz offered to dealers, although Justice Beach indicated Australian franchise law may once again need to be revisited and potentially modified. "Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today's decision is a significant blow to that fight which will have detrimental effects on Australia's franchising sector," said AADA CEO James Voortman. "In handing down today's decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation. "The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses. "Today's decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. "It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices." The move to an agency retail model resulted in Mercedes-Benz taking ownership of dealership stock, and removing the ability for customers and dealership staff to negotiate on prices – a change which dealers claimed would drive up prices of new models. At the time of the initial court action, the 38 dealers were pursuing approximately $650 million in compensation. Mercedes-Benz isn't the only auto brand to switch to an agency model in Australia, with Honda also doing the same – also resulting in legal action from some of its dealers. Like Honda, Mercedes-Benz experienced a sales downturn after the switch in January 2022. Deliveries of vehicles from its Cars division fell from 28,348 in 2021 to 26,801 in 2022, before dropping again in 2023 to 24,315 and then 19,989 in 2024. But there's light at the end of the tunnel, it would appear, with deliveries in the first half of 2025 up 15.9 per cent on the same period last year to 11,146 in total – its best first-half of a year since 2023. MORE: Everything Mercedes-Benz Content originally sourced from: The head of the peak body for car dealers in Australia has slammed a Federal Court appeal decision that found in favour of Mercedes-Benz over dealers unhappy with its move to an agency sales model. The Federal Court has dismissed an appeal, filed in 2024, against a judgement it handed down in 2023. In that ruling, where it found in favour of Mercedes-Benz Australia Pacific over a majority (38 of 50) of its franchised dealers, the Court found dealers hadn't been misled about the agency move and that Mercedes-Benz hadn't engaged in unconscionable conduct. The Australian Automotive Dealer Association (AADA) said it's "bitterly disappointed" by today's decision, particularly as it follows the Supreme Court of Victoria's ruling earlier this year which found General Motors didn't breach its agreement with Australian dealers when it axed the Holden brand in 2020. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It's pushing for the Federal Government to introduce additional protections for automotive franchisees "so that the blueprint created by this court decision is not used by others". "We welcome the decision of the Full Court of the Federal Court in this matter. Our focus continues to be on delivering luxury products and services for our valued customers around Australia," said a spokesperson for Mercedes-Benz. At the heart of the original case, which commenced in October 2021, was the compensation Mercedes-Benz offered to dealers, although Justice Beach indicated Australian franchise law may once again need to be revisited and potentially modified. "Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today's decision is a significant blow to that fight which will have detrimental effects on Australia's franchising sector," said AADA CEO James Voortman. "In handing down today's decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation. "The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses. "Today's decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. "It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices." The move to an agency retail model resulted in Mercedes-Benz taking ownership of dealership stock, and removing the ability for customers and dealership staff to negotiate on prices – a change which dealers claimed would drive up prices of new models. At the time of the initial court action, the 38 dealers were pursuing approximately $650 million in compensation. Mercedes-Benz isn't the only auto brand to switch to an agency model in Australia, with Honda also doing the same – also resulting in legal action from some of its dealers. Like Honda, Mercedes-Benz experienced a sales downturn after the switch in January 2022. Deliveries of vehicles from its Cars division fell from 28,348 in 2021 to 26,801 in 2022, before dropping again in 2023 to 24,315 and then 19,989 in 2024. But there's light at the end of the tunnel, it would appear, with deliveries in the first half of 2025 up 15.9 per cent on the same period last year to 11,146 in total – its best first-half of a year since 2023. MORE: Everything Mercedes-Benz Content originally sourced from: The head of the peak body for car dealers in Australia has slammed a Federal Court appeal decision that found in favour of Mercedes-Benz over dealers unhappy with its move to an agency sales model. The Federal Court has dismissed an appeal, filed in 2024, against a judgement it handed down in 2023. In that ruling, where it found in favour of Mercedes-Benz Australia Pacific over a majority (38 of 50) of its franchised dealers, the Court found dealers hadn't been misled about the agency move and that Mercedes-Benz hadn't engaged in unconscionable conduct. The Australian Automotive Dealer Association (AADA) said it's "bitterly disappointed" by today's decision, particularly as it follows the Supreme Court of Victoria's ruling earlier this year which found General Motors didn't breach its agreement with Australian dealers when it axed the Holden brand in 2020. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It's pushing for the Federal Government to introduce additional protections for automotive franchisees "so that the blueprint created by this court decision is not used by others". "We welcome the decision of the Full Court of the Federal Court in this matter. Our focus continues to be on delivering luxury products and services for our valued customers around Australia," said a spokesperson for Mercedes-Benz. At the heart of the original case, which commenced in October 2021, was the compensation Mercedes-Benz offered to dealers, although Justice Beach indicated Australian franchise law may once again need to be revisited and potentially modified. "Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today's decision is a significant blow to that fight which will have detrimental effects on Australia's franchising sector," said AADA CEO James Voortman. "In handing down today's decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation. "The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses. "Today's decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. "It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices." The move to an agency retail model resulted in Mercedes-Benz taking ownership of dealership stock, and removing the ability for customers and dealership staff to negotiate on prices – a change which dealers claimed would drive up prices of new models. At the time of the initial court action, the 38 dealers were pursuing approximately $650 million in compensation. Mercedes-Benz isn't the only auto brand to switch to an agency model in Australia, with Honda also doing the same – also resulting in legal action from some of its dealers. Like Honda, Mercedes-Benz experienced a sales downturn after the switch in January 2022. Deliveries of vehicles from its Cars division fell from 28,348 in 2021 to 26,801 in 2022, before dropping again in 2023 to 24,315 and then 19,989 in 2024. But there's light at the end of the tunnel, it would appear, with deliveries in the first half of 2025 up 15.9 per cent on the same period last year to 11,146 in total – its best first-half of a year since 2023. MORE: Everything Mercedes-Benz Content originally sourced from:
