Chinese Automakers Increase Exports to Australia as Market Share Surges

Australia’s automotive landscape is undergoing a rapid transformation as Chinese car manufacturers pivot heavily toward the local market. Squeezed by oversaturated domestic conditions and tightening regulations at home, brands like BYD and Chery are exporting record volumes abroad. Because Australia lacks a domestic car industry to protect, it does not impose the heavy tariff walls seen in other major economies like Europe, which maintains levies of up to 35 per cent on Chinese electric vehicle imports according to reporting from regional mastheads.

Record-Breaking Sales and the Rise of Chinese Brands

The influx of competitively priced models has translated directly into showroom sales. Data released by the Federal Chamber of Automotive Industries and the Electric Vehicle Council shows that a total of 106,891 new vehicles were sold in September, marking a 7 per cent increase over the same period in 2024. Within that total, electric vehicles captured 11 per cent of all new car sales, establishing a new monthly high.

Chinese-made vehicles surged 67.7 per cent year-on-year, cementing China as Australia’s second-largest country of origin for new cars. Brands such as BYD recorded an explosive 149.8 per cent increase in year-to-date sales as reported in motoring data. Affordable offerings are anchoring this momentum: the BYD Atto 1 hatchback starts at $23,990 before on-road costs, while budget-friendly small SUVs like the Chery Tiggo 4 petrol model begin at $23,990 drive-away and the Jaecoo J5 EV is priced at $36,990 drive-away based on manufacturer pricing details.

The Climate Imperative and the 2035 Emissions Target

This commercial shift arrives as the federal government implements strict climate benchmarks. Canberra has established a target to cut emissions by at least 62 per cent by 2035 according to the Climate Change Authority’s advice. Transport currently accounts for 22 per cent of national emissions and remains the fastest-growing source.

To align with these climate commitments, advisory bodies estimate that at least half of all new passenger vehicles sold over the next decade must be electric, requiring more than 5 million EVs on the road by 2035.

“Affordable imports mean car buyers have more to choose from at lower prices, but it also means the nation hits its climate goals.”

Julie Delvecchio, Electric Vehicle Council chief executive

Matt Kean, who heads the Climate Change Authority, defended the trend by highlighting the technological leaps driven by international competition.

“If Chinese exporters force prices lower for the whole sector, Australians will likely be beneficiaries as we no longer have a car industry to protect. We should be wary, too, about concerns raised by incumbent companies who would rather complain than compete.”

Matt Kean

Political Division and Global Anti-Dumping Scrutiny

Despite consumer enthusiasm for cheaper options, the federal government faces fierce political friction over its trade stance. Canberra recently confirmed it would join an international push to reform World Trade Organisation rules addressing global oversupply in sectors like steel and electric vehicles, amid accusations that foreign manufacturers are dumping heavily subsidised cars onto international markets at negligible profits as detailed in federal political coverage.

The federal opposition seized on the move to highlight internal disagreements within the Labor Party. Opposition transport spokeswoman Bridget McKenzie criticized government policies—including fringe benefits tax breaks for EVs and the vehicle efficiency standard—for distorting the market and creating an over-reliance on foreign imports.

“It is another example of how split the Labor Party is within cabinet, that you have the right wing, rightfully concerned about this [China dumping of EVs] whilst the other half of the Albanese cabinet is pursuing this electrification of our nation.”

Bridget McKenzie, Opposition transport spokeswoman

Infrastructure Strain and Industry Skepticism

Beyond political clashes, automotive sector representatives warn that structural hurdles threaten the feasibility of the 2035 goals.

As brands such as Geely, GAC, and XPeng prepare to introduce further models to local showrooms noted in trade roundups, the path forward will depend heavily on upcoming regulatory reviews.