Why Chinese car sales are selling hot and fast in Australia
Australian sales of cars sourced from China have exploded by more than 2000 per cent, driven by a particular type of vehicle.
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Surging popularity of electric cars is driving an explosion in sales of Chinese vehicles in Australia.
Having overtaken Europe, the UK and US Chinese car imports overtook Korea in February, closing the gap to Thailand and Japan this year.
Chinese car sales have ballooned by more than 2000 per cent in the last five years, growing from less than 5000 cars sold in 2017 to more than 120,000 in 2022.
The nation’s market share has grown from 0.5 per cent to more than 15 per cent in the last five years, buoyed by a 30-fold increase in electric car sales.
Experts say it may only be a matter of time before China becomes the number one supplier to Australia.
Electric vehicle website EV Central co-founder Toby Hagon said most people wouldn’t realise the majority of electric cars sold in Australia were built in China.
“Last year roughly 80 per cent of the EVs sold in Australia were sourced from China,” Mr Hagon said.
“The top five selling electric cars in Australia come from China. While that includes Chinese brand BYD, it also includes some big players in the growing EV space, such as Tesla and Polestar.
“Even Volvo and BMW source electric vehicles from China,” he said.
Sydney motorist Marcus Lee said a vehicle’s country of origin did not factor into his decision when choosing to buy the new BYD Atto 3 electric car.
“That wasn’t part of the conversation – it wasn’t a concern,” Mr Lee said.
“It was a family decision – we just wanted to get to EVs sooner rather than later.”
Renault’s Australian managing director Glen Sealey said Chinese carmakers were targeting the cost-driven customers once pursued by Hyundai and Kia.
He said a free-trade agreement between Australia and China made it hard for European brands to be competitive on price.
“We have to pay a 5 per cent duty because [the cars] are coming from Europe and the Chinese are here for free,” Mr Sealey said.
Vehicle valuation website Red Book’s general manager Ross Booth said China had the potential to become the number one supplier of cars to Australia.
“Australians have always been reasonably value conscious when it comes to motoring. If they can’t buy a Toyota they might buy the next best thing, a Chinese brand with a seven-year warranty,” Mr Booth said.
He said Chinese brands such as MG and Haval were selling budget cars to buyers largely abandoned by increasingly expensive mainstream manufacturers such as Honda, Toyota and Mazda.
And utes were the next hurdle for Chinese manufacturers to conquer, as the dual-cab pick-up market dominated by the Toyota HiLux and Ford Ranger was responsible for Thailand’s place as the second-largest vehicle supplier.
“When you look at Great Wall and LDV Utes – what you get for what you pay isn’t too bad,” Mr Booth said.
“Everyone wants a Ford Ranger WildTrak, but for twice the price?”
Chery relaunched in Australia in February, promising to deliver a ute to join China’s GWM Cannon and LDV T60 duo.
And heavy vehicle specialist BLK Auto is shifting gears to import the JAC T9 dual-cab to Australia this year.
Mr Hagon said more than 20 per cent of the 122,845 cars sourced from China last year were powered solely by electricity.
Originally published as Why Chinese car sales are selling hot and fast in Australia
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