BUSINESS

China Overtakes Japan as Australia’s Top Auto Supplier

Published: Apr. 2, 2026 9:36 p.m. GMT+8

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More than 5,000 China-made vehicles wait to be shipped to Australia at the Waigaoqiao Haitong International Auto Terminal in Shanghai on July 6, 2025. Photo: VCG

China overtook Japan as Australia’s largest source of imported vehicles for the first time in February, ending Japan’s decades-long lead in the market.

Australia imported 22,300 vehicles from China in February, giving China a 25% share, according to data from the Federal Chamber of Automotive Industries (FCAI). Japan ranked second with 21,600 units, followed by Thailand with 19,400. Japan had been the top source since 1998.

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China overtook Japan as Australia's top vehicle import source in February with 22,300 units (25% share) vs. Japan's 21,600, ending 1998 dominance.
Chinese brands' market share rose from <5% in 2020 to 20% in 2025; BYD, GWM, Chery, MG among top 10 sellers in early 2026.
2025 BEV sales up 13.1% to 103,000; PHEV up 130% to 53,000; BYD PHEV sales 27,000, total sales up 156% to 52,400.

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Who’s Who

BYD Co. Ltd.: BYD Co. Ltd. sold 52,400 vehicles in Australia in 2025 (up 156%), its largest APAC market. Jan-Feb 2026 sales hit 10,200 (up 160%), ranking among top 10 brands. Led PHEV market (27,000 units, ~50% share) and BEV growth (25,000 units, +77.3%). Plans 7-8 new models.

Geely Automobile Holdings Ltd.: Geely Automobile Holdings Ltd. is one of nine Chinese brands that entered Australia's automotive market since 2020, alongside BYD and XPeng, contributing to China's rise as the top vehicle import source in February.

XPeng Inc.: XPeng Inc. is one of nine Chinese brands that entered Australia's auto market since 2020, alongside BYD and Geely, helping Chinese vehicles overtake Japan as the top import source in February.

Tesla Inc.: Tesla Inc. vehicles, manufactured in China, are imported to Australia. In 2025, Tesla remained Australia's top battery-electric seller with 28,000 units sold, down 24.8% year-over-year, amid rising competition from BYD.

BMW AG: Imports from China to Australia include vehicles made there by BMW AG.

Kia Corp.: Kia Corp. vehicles manufactured in China are included in Australia's imports from China, contributing to China overtaking Japan as the top source in February.

Great Wall Motor Co. Ltd.: In the first two months of 2026, Great Wall Motor Co. Ltd. (GWM) ranked among Australia’s 10 best-selling brands, alongside BYD, Chery, and MG Motor. (28 words)

Chery Automobile Co. Ltd.: In the first two months of 2026, Chery Automobile Co. Ltd. ranked among Australia’s 10 best-selling brands, alongside BYD, Great Wall Motor (GWM), and MG Motor.

SAIC Motor: SAIC Motor-backed MG Motor ranked among Australia’s 10 best-selling brands in the first two months of 2026, amid rising Chinese vehicle imports that overtook Japan in February.

MG Motor: MG Motor, backed by SAIC Motor, ranked among Australia's 10 best-selling brands in the first two months of 2026, alongside BYD, GWM, and Chery. It's one of nine Chinese brands that entered the market since 2020, contributing to China's 20% new-car market share in 2025.

Toyota Motor Corp.: In the first two months of 2026, Toyota Motor Corp.’s sales in Australia fell 24.9% to 27,900 vehicles.

Mazda Motor Corp.: Mazda Motor Corp.’s sales in Australia declined 13.9% to 14,700 vehicles in January and February 2026, amid rising Chinese brands.

Mitsubishi Motors Corp.: In 2025, Mitsubishi Motors Corp. held about 10% of Australia's plug-in hybrid market share, trailing BYD's roughly 50% after 27,000 units sold.

AI generated, for reference only