China Overtakes Japan, Dominates Car Sales in Australia

SYDNEY, KOMPAS.com - China has for the first time surpassed Japan in Australia. The Land Down Under now imports more cars from China. This situation marks a significant change in Australia’s automotive market landscape. It also signals prospects for competition between Japanese and Chinese cars in foreign markets. According to data from the Federal Chamber of Automotive Industries (FCAI), in February 2026, vehicle imports from China reached 22,300 units, accounting for about 25% of the market share. This data represents a turning point in Japan’s dominance, which has prevailed in Australia’s automotive import market since 1998. This change also reflects a shift in consumer preferences towards electric vehicles and more affordable options from Chinese manufacturers. The surge in imports from China is driven by the increasing popularity of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs). Additionally, Great Wall Motor (GWM) recorded growth in the SUV and ute (pick-up) segments. In 2025, GWM achieved a 23.4% increase in sales. Australia’s passenger vehicle market is highly dependent on imports, following the loss of its domestic production base. The absence of import tariffs and high interest in SUVs and light commercial vehicles make Australia a strategic market for global brands. Electric vehicle sales in Australia continue to rise. Throughout last year, EV sales reached around 103,000 units, with Chinese-made cars holding a significant share. Analysts estimate that Chinese car manufacturers could dominate 40% of Australia’s new car market by 2030, if trends in competitive pricing and technological innovation continue.