China overtakes Japan as Australia's largest car importer
Jakarta (ANTARA) - China has now officially surpassed Japan as the largest source of vehicle imports to Australia for the first time, marking a significant shift in the country’s automotive market.
According to data from the Federal Chamber of Automotive Industries (FCAI) cited by Carnewschina on Friday (3/4) local time, this shift occurred in February, when vehicle imports from China reached 22,300 units, capturing about 25 per cent of the market share. This figure placed China ahead of Japan, which recorded 21,600 units, and Thailand with 19,400 units.
This February data represents a turning point in Japan’s dominance of Australia’s automotive import market, which has prevailed since 1998. The change reflects a rapid shift in consumer preferences towards electric vehicles and more affordable alternatives from Chinese manufacturers.
The surge in imports from China is largely driven by the increasing popularity of electric vehicles (EV) and plug-in hybrids (PHEV). One of the key players is BYD, which is capitalising on the high demand for affordable electric vehicles in Australia.
BYD’s sales rose 160 per cent to 10,200 units in the first two months of this year. Meanwhile, Great Wall Motor (GWM) has also achieved success in the SUV and ute segments, with a 23.4 per cent sales increase in 2025, making it the market leader in its category.
Australia’s passenger vehicle market is heavily reliant on imports, as it no longer has a domestic production base since major manufacturers ceased local manufacturing. The absence of vehicle import tariffs, along with diverse consumer preferences for SUVs and light commercial vehicles, makes Australia an important market for the expansion of global automotive brands.
Australian consumers have quickly embraced Chinese-origin vehicles thanks to their competitive pricing, advanced technological features, and the trend towards electrification.
In recent years, Chinese car manufacturers have become an integral part of the Australian market. Since 2020, nine new Chinese brands have entered the Land Down Under, bringing the total to more than a dozen. Dominant brands include MG, BYD, GWM, and Chery.
Electric vehicle sales alone in Australia reached 103,000 units across major markets last year, with Chinese-made cars holding a significant share in the EV sector in the country.
Industry analysts estimate that Chinese carmakers could dominate more than 40 per cent of Australia’s new vehicle market by 2030, if their aggressive pricing and technological trends continue.