Chinese automakers, including BYD, Chery, and GWM, are rapidly expanding their electric vehicle (EV) and plug-in hybrid offerings in Australia to meet rising consumer demand and regulatory standards.

In 2025, electric vehicle sales in Australia have surged, with over 14,000 additional EVs sold compared to the same period in 2024, representing over 12 percent of new car sales.

The New Vehicle Efficiency Standard (NVES), effective from January 1, 2025, imposes strict fleet-wide emissions targets for new vehicle brands, with penalties for exceeding carbon emissions limits.

The Australian Automotive Dealer Association (AADA) has raised concerns that the NVES is inadvertently promoting the sales of Chinese cars in Australia.

James Voortman, CEO of AADA, noted that some Chinese brands are becoming sophisticated enough to establish dealer councils similar to those of established brands in Australia.

Currently, China dominates the local EV market, accounting for 65% of imports, and is also increasing exports of combustion-powered vehicles.

Research from AADA indicates that the rapid growth of Chinese vehicle imports is set to significantly alter the Australian automotive landscape, with projections suggesting they could supply 43 percent of all new vehicles sold by 2035.

The Electric Vehicle Council emphasizes the necessity of building charging infrastructure to support increasing EV adoption, alongside calls for investment and regulatory reform.

China's rise in the Australian market is attributed to government investments in EV technology, reduced production costs, and stable pricing strategies.

Many Chinese brands have invested in adapting their vehicles to meet Australian market conditions, enhancing their competitiveness.

With over 150 EV models now available in Australia, the market is catering to diverse consumer needs, which is fostering increased competition.

As Chinese automakers gain traction, the market share of Japanese-built cars is expected to decline from 32% to 22%, Thai-built vehicles from 21% to 11%, and Korean-built vehicles from 13% to 8%.