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Chinese EVs Gain Ground in Australia Amid Government Push and Market Challenges

As electric vehicle sales rise, driven by government incentives and the absence of trade barriers, affordability and policy debates pose ongoing challenges.

  • Chinese electric vehicle (EV) manufacturers, led by BYD, are rapidly expanding their presence in Australia, capitalizing on a market without trade barriers and benefiting from government subsidies and tax incentives.
  • The Albanese government's push for EV adoption, aiming to reduce emissions, has significantly increased EV sales, with EVs accounting for 7.2% of new car sales in 2023, up from 3.1% the previous year.
  • Despite the growth in EV sales, concerns remain about the affordability of electric vehicles for the average Australian, with most models being expensive and having long waiting lists.
  • The Australian government is considering introducing vehicle emissions standards to encourage a wider range of affordable EV options, facing opposition from parts of the auto industry and political challenges.
  • Relations between Australia and China have improved, facilitating the entry of Chinese EVs into the Australian market, despite ongoing international tensions over trade and cybersecurity concerns.
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