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Chinese Cars Poised to Capture Nearly Half of Australia’s Imports by 2035

Australia’s new low-emission vehicle mandates are inadvertently accelerating sales of affordable Chinese hybrids and EVs.

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Overview

  • A report by the Centre for International Economics for the Australian Automotive Dealer Association forecasts Chinese-built vehicles will surge from 16% of imports in 2025 to 43% by 2035.
  • Australia’s New Vehicle Efficiency Standard penalises higher-emission models, effectively granting Chinese hybrids and electric cars a competitive edge.
  • China already accounts for 65% of Australia’s electric vehicle imports, with BYD, Xpeng, Zeekr, Geely and MG topping local sales.
  • Japanese-made car share is projected to fall from 32% to 22% and Thai-made from 21% to 11% by 2035, while South Korea’s share dips to 8%.
  • Automotive dealers are calling on the government to strengthen ACCC-backed guarantees to ensure timely parts supply, shorter service wait times and robust warranty support.