Lyla Lindsey
China is rapidly becoming a dominant force in the Australian car market, with Chinese-made cars now accounting for 16% of new vehicle sales in Australia. This shift can be attributed to the increasing demand for quality and the rise of electric vehicles, with China becoming a global hub for EV manufacturing. Up to a dozen new Chinese marques are expected to enter the Australian market by the end of 2025, with brands like MG, Great Wall, LDV, BYD, and GWM already experiencing success in the country. Geely, one of China's most experienced carmakers, has made a significant impact in Australia through its ownership of Volvo, Lotus, and Proton, as well as its upcoming launch of the Zeekr X SUV. The Chinese automotive industry's ability to offer competitive pricing is attributed to affordable labour, highly automated factories, efficient supply chain management, and high production volumes. Despite geopolitical tensions between Australia and China, car buyers remain focused on finding the right vehicle for their needs, regardless of its country of origin.
| Characteristics | Values |
|---|---|
| Number of Chinese-made cars sold in Australia in 2023 | 193,433 |
| Number of Chinese-made cars sold in Australia in 2024 | 176,159 |
| % increase in sales from 2023 to 2024 | 13.4% |
| Chinese-owned maker of SUVs and small cars in Australia | MG |
| Chinese car brands in Australia | Great Wall, Haval, LDV, BYD, Ora, Deepal, Xpeng, GWM, Foton, Roewe, Volvo, Chery, Yutong |
| Chinese owner of Volvo | Geely |
| Chinese owner of Lotus, The London Taxi Company (London EV Company), and Proton | Geely |
| Chinese owner of Smart brand | Mercedes-Benz |
| Chinese owner of LDV | SAIC |
| Chinese owner of Roewe | SAIC |
| Chinese owner of GAC | AGA Auto |
| Chinese owner of Deepal | Changan |
| Distributor of Deepal in Australia | Inchcape |
| Distributor of Xpeng in Australia | TrueEV |
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What You'll Learn
- Chinese-made cars sold in Australia have increased by 57.5% from 2022 to 2023
- MG, a Chinese-owned maker of SUVs and small cars, is among the top 10 sellers in Australia
- Volvo, owned by Chinese giant Geely, is a popular car in Australia
- Chinese car brands are expected to become mainstays in Australia's automotive environment
- Chinese cars are becoming more popular due to their improved quality and affordable prices
Chinese-made cars sold in Australia have increased by 57.5% from 2022 to 2023
The Chinese government's "New Energy Vehicle" mandate, which aims to boost electric vehicle sales and eventually ban combustion vehicle sales, has spurred an explosion in the development and sale of EVs in China. This has made China a global hub for EV manufacturing, attracting American and European brands like Tesla and BMW to use the country as a production source for the Australian market.
Several Chinese car brands have contributed to the significant increase in sales in Australia. MG, a Chinese-owned brand, experienced a 17.7% sales increase in 2023, with its MG ZS model ranking as the top-selling small SUVs for the third consecutive year. Tesla, while being an American company, was the second-largest manufacturer of Chinese-made cars in Australia, with its Model Y and Model 3 SUVs accounting for over 46,000 sales.
Other notable Chinese brands making their mark in Australia include BYD, Chery, LDV, GWM, and Great Wall. BYD, the world's largest manufacturer of solely electric vehicles, reported a remarkable 489% sales increase in 2023. Chery, which returned to the Australian market in 2023 after an eight-year absence, sold 5890 vehicles, outperforming brands like Jeep and Peugeot. LDV, with its popular T60 ute, and GWM, a top-10 seller in Australia, have also experienced significant sales growth.
Great Wall, one of the longest-surviving Chinese car brands in Australia, has made steady progress with its affordable dual-cab utes and Haval SUV sub-brand. Additionally, Geely, one of the most experienced Chinese carmakers in understanding the Australian market, owns Volvo, Lotus, and The London EV Company, with plans to launch its Zeekr brand in Australia.
With China's rapid growth in the Australian market, it is expected that more Chinese car brands will become mainstays in the local automotive environment in the coming years.
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MG, a Chinese-owned maker of SUVs and small cars, is among the top 10 sellers in Australia
MG, a Chinese-owned maker of SUVs and small cars, is among the top 10 best-selling car brands in Australia. In 2023, almost 200,000 new cars sold in Australia were built in China, a 57.5% increase from 2022. China is now the third most popular country of origin for new vehicle sales in Australia, with Japanese-built and Thai-built cars taking first and second place, respectively.
The MG ZS, an SUV, was one of the three most popular SUVs in Australia in 2023, with 29,258 sales. MG also topped the small SUV and light car segments with its MG3 model, achieving a total of 58,346 sales, a 17.7% increase from the previous year.
MG is owned by SAIC, a Chinese auto group that also owns the LDV brand, which sells commercial vans and pickups in Australia. The T60 ute is LDV's big seller in the country, and the company is set to launch the eTerron 9 electric ute in 2025.
In addition to MG and LDV, other Chinese car brands that are growing in popularity in Australia include Haval, Great Wall, and BYD. Great Wall, one of the longest-surviving Chinese car brands in the Australian market, offers simple and affordable dual-cab utes and the Haval SUV sub-brand. BYD, a Chinese electric vehicle specialist, is gaining traction with its compact electric SUV, the BYD Atto 3, which rivals the Hyundai Kona Electric and Kia EV3.
The increasing presence of Chinese car brands in Australia is not just about budget cars, as China is also becoming a global hub for electric vehicle manufacturing, including for prestige brands. For example, the top-selling electric car in Australia, the Tesla Model 3, has been imported from China since 2021. Volvo, which is owned by Chinese giant Geely, sources a variety of cars from China, including the XC60, XC40, and C40 Recharge, and posted record sales in 2023.
As Chinese automakers continue to innovate and improve the quality and equipment levels of their vehicles, they are gaining sales in the Australian market by offering competitive prices that rival car manufacturers might struggle to match.
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Volvo, owned by Chinese giant Geely, is a popular car in Australia
Volvo Cars is a Swedish multinational manufacturer of luxury vehicles, including SUVs, station wagons, and sedans. The company's marketing revolves around safety and its Swedish heritage and design. Geely's acquisition facilitated Volvo's recovery and brought significant technological and managerial advancements, including the development of a new line of 3- and 4-cylinder diesel and petrol engines, as well as a new vehicle platform called the Scalable Product Architecture (SPA).
Under Geely's ownership, Volvo's sales have surged, reaching 500,000 vehicles in 2015 and exceeding 700,000 in 2023. Geely has allowed Volvo autonomy with its resources, and the companies have jointly developed engines and platforms, such as the Compact Modular Architecture platform used by both Volvo and Geely.
In 2021, Volvo Cars set up a joint venture with Geely for its hybrid engine operations, resulting in the new business, Aurobay. In 2023, Volvo removed conventional engines as an option, making mild hybrids the base engine option in the US. Volvo has also announced plans to become a fully electric brand by 2030, exclusively selling vehicles online.
In Australia, Volvo is well-established, with its own range of products, dealer networks, and workshop locations. The brand is known for its focus on safety and has a strong presence in the Australian market, contributing to its popularity in the country.
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Chinese car brands are expected to become mainstays in Australia's automotive environment
Chinese car brands are already a dominant force in Australia, and their presence is only expected to grow. In 2023, China overtook South Korea to become the third most popular country of origin for new vehicle sales in Australia, with almost 200,000 new cars sold—a 57.5% increase from 2022.
The rise of Chinese car brands in Australia can be attributed to several factors. Firstly, China is rapidly becoming the global hub for electric vehicle manufacturing, and with the Australian market's growing demand for electric vehicles, Chinese automakers are well-positioned to meet this demand. The Chinese government's "New Energy Vehicle" mandate, which aims to boost sales of electric vehicles, has resulted in an explosion of electric vehicle development and sales in China. Additionally, Chinese car brands are known for offering quality vehicles at competitive prices, undercutting their rivals by combining affordable labour, highly automated and efficient factories, tight control over supply lines, and high production numbers.
Up to a dozen new Chinese car brands are expected to enter the Australian market by the end of 2025, joining the likes of established brands such as MG, Great Wall, Haval, LDV, and GWM. These new entrants include Deepal, an electric vehicle specialist owned by carmaking giant Changan, which will launch its S07 electric SUV in Australia in the coming months. Xpeng is another brand confirmed to enter the Australian market, targeting the popular Tesla Model Y with its G6 electric SUV. Other brands such as GAC, Roewe, and Zeekr are also expected to make their way to Australia, offering a range of electric vehicles and people movers.
While there may be scepticism towards Chinese car brands, their presence in the Australian market is expected to become a mainstay in the long term. The rise of Chinese automakers in Australia mirrors the success of South Korean automakers Hyundai and Kia two decades ago. As Chinese brands continue to improve the quality and equipment levels of their vehicles while offering competitive pricing, they are gaining sales and establishing themselves in the Australian automotive environment.
The increasing popularity of Chinese car brands in Australia is not solely driven by budget-conscious buyers. Brands like Polestar, a Chinese-built sports-luxury EV, have found a significant market in Australia, with a 61.6% sales increase in 2023. Additionally, Volvo, which is owned by Chinese giant Geely, has posted record sales in Australia, with models like the XC60, XC40, and C40 Recharge sourced from China.
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Chinese cars are becoming more popular due to their improved quality and affordable prices
Chinese cars are becoming increasingly popular in Australia, with sales figures and market share on the rise. In 2023, almost 200,000 new cars sold in Australia were built in China, a significant increase from the 7,000 Chinese-built cars sold in 2013. This surge in popularity can be attributed to improved quality and affordable prices, as well as a shift in consumer demands.
Chinese automakers have been working to enhance the quality of their vehicles, addressing previous concerns about dated designs and lacklustre safety performance. This focus on quality has led to the development of contemporary models that meet the expectations of Australian motorists. Additionally, Chinese cars offer a combination of improved equipment levels and competitive pricing, making them an attractive option for buyers.
One of the key factors contributing to the affordability of Chinese cars is the country's large-scale manufacturing capabilities. Affordable labour, highly automated and efficient factories, tight control over supply lines, and high production volumes enable Chinese automakers to offer competitive prices. This pricing strategy has been particularly effective in attracting buyers, as it provides value for money without compromising on quality.
The growing popularity of Chinese cars in Australia is also driven by the country's emergence as a global hub for electric vehicle (EV) manufacturing. With the Australian market's strong demand for SUVs, Chinese automakers have been quick to introduce a range of electric SUVs, such as the BYD Atto 3, MG eZS, and Deepal S07. These EVs offer a combination of advanced technology, performance, and competitive pricing, making them a compelling choice for environmentally conscious buyers.
While Chinese cars may have initially been associated with bargain prices, the perception is changing. Up to a dozen new Chinese marques are expected to enter the Australian market by the end of 2025, showcasing their commitment to quality and innovation. Brands such as Great Wall, LDV, and MG have already established themselves in Australia, and more brands are expected to follow suit, further solidifying the presence of Chinese cars in the local market.
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Frequently asked questions
Many cars are made in China and sold in Australia, including those from brands such as BYD, MG, Great Wall, LDV, Haval, Deepal, Xpeng, GWM, JAC, and Foton.
Yes, there are several electric vehicles made in China that are sold in Australia. This includes the BYD Atto 3, MG ZS, and the Deepal S07, which are all electric SUVs.
Some Chinese car brands that are expected to enter the Australian market include Roewe, GAC, and Zeekr.
Yes, some luxury cars made in China and sold in Australia include the Volvo XC60, XC40, and C40 Recharge.
Chinese car manufacturers can often undercut their competitors on price due to affordable labour, highly automated and efficient factories, tight control over supply lines, and huge build numbers.
