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Inside China’s total domination of Australian roads

China is achieving something in Australia that Japan and Korea did in the 1980s and 2000s. But experts agree China’s moves are on another level.

Chinese vehicles are on the same path as predecessors from Korea and Japan – a road that runs from cheap and cheerful economy cars to genuinely desirable machines.

Chinese brands represent the fastest-growing models in the automotive industry, accounting for 15 per cent of sales.

Federal Chamber of Automotive Industries (FCAI) May sales data show Great Wall Motors (GWM) is now the sixth best-selling brand in Australia, followed by MG in seventh, while BYD has climbed to 12th, and Chery sits just behind in 14th place.

Cox Automotive Australia corporate affairs manager Mike Costello said the growth of Chinese brands “is no different to the embrace of Japanese brands in the 1980s and Korean brands in the 2000s”.

“Just faster and at a greater scale this time,” Mr Costello said.

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China is just dominating the car market on affordability - but also tech.
China is just dominating the car market on affordability - but also tech.

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Carsales data services director Ross Booth believes the success of Chinese manufacturers goes beyond affordability.

“The Australian market has always appreciated value for money in new car motoring, and many of these Chinese vehicles are hitting the mark – offering strong perceived quality at affordable purchase prices with low running costs,” Mr Booth said.

The expedited growth of Chinese brands can be linked to global oversupply, price wars and trade restrictions in larger markets like the United States and Europe.

Mr Costello said Chinese car manufacturers have massive ambitions, reduced export options, and production levels that exceed domestic demand right now.

“BYD just announced temporary price cuts of up to 30 per cent in its home market … Last week we also saw China-market price cuts from Geely, SAIC Motor, and Leapmotor,” Mr Costello said.

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Thousands of new cars from China are entering the Australian market every month.
Thousands of new cars from China are entering the Australian market every month.

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Which is why Chinese brands are leaning into smaller but promising “tip-of-the-spear” markets like Australia, where aggressive pricing, long warranties and sophisticated technology and design appeal to motorists.

Chinese brands initially garnered attention with price tags that couldn’t be beaten.

But Chinese automakers are competing on technology, design and safety.

It’s a strategy that is clearly paying off with BYD more than doubling its sales in the past year, up 103 per cent, while Chery’s number has exploded by 234 per cent and GWM, a more established player, still managed a 14 per cent lift off a higher base.

Mr Booth said data from carsales shows that Chinese-made vehicles are gaining traction “not just for their price, but for the value they offer”.

“Many deliver comparable – or even better – quality and technology than their competitors, often at a more affordable price point,” Mr Booth said.

“While design preferences are personal, it’s clear that buyers are increasingly recognising the appeal of these vehicles beyond just cost.”

The BYD Shark has upended the Australian ute market.
The BYD Shark has upended the Australian ute market.

For instance, BYD’s cars come with massive infotainment screens, luxury features and advanced technology.

The BYD Shark 6, scored a five-star ANCAP rating and has already reached 6000 sales this year. Newcome Geely has sold 1000 examples of its EX5.

The GWM’s Tank range has become a favourite among off-roaders and MG has expanded beyond affordable hatchbacks to deliver a $100,000 sports car.

Mr Costello said buyers are increasingly likely to consider cars from Chinese brands.

“It’s clear that while a subset of buyers still have reservations, perhaps in part because of their broader opinions on the Chinese State, an ever-growing cohort are opting for more affordable Chinese cars, swayed by their long warranties, cutting-edge tech, and modern designs,” he said.

“What the Chinese brands have been good at is poaching the best talent around. BYD’s head designer is ex-Audi, to name just one of many examples.

“From an Australian perspective, GWM’s local chief engineer for vehicle tuning is Rob Trubiani, a former senior GM Holden executive.”

With more than 20 Chinese car brands expected to be available in Australia by 2026, including newcomers like Denza, JAC, Deepal and Skywall, the local market is entering a new era of competition.

Originally published as Inside China’s total domination of Australian roads

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Original URL: https://www.heraldsun.com.au/motoring/inside-chinas-total-domination-of-australian-roads/news-story/1034dc07d91b7d78b4fee8f93e4432ce