Drive.com
CHINA has cemented its position as Australia’s biggest source of new vehicles, outselling Japanese-built cars for a seventh consecutive month as electric vehicles reshape the nation’s automotive market.
For decades Japan has been synonymous with the Australian new-car market, but a rapid influx of Chinese-built vehicles, particularly affordable electric and hybrid models, is changing the balance.
Chinese-manufactured vehicles first edged ahead of Japanese-built cars in February 2026, marking the first time since July 2016 that Japan had not been Australia’s number-one source of new vehicles.
Rather than proving a one-off result, China has now remained ahead for seven straight months.
Data from the Federal Chamber of Automotive Industries shows the gap has also become substantial, with 18,990 more Chinese- built vehicles delivered in Australia last month than vehicles manufactured in Japan.
The result reflects both the rapid expansion of Chinese automotive brands and Australia’s growing appetite for electric vehicles.
Chinese manufacturers including BYD, GWM, MG and a growing collection of newer entrants have expanded their presence in Australia.
Tesla has played a significant role in the changing manufacturing figures, with almost all of the company’s vehicles delivered in Australia sourced from its Chinese manufacturing operations.
