BYD's car carrier ready for next voyage. Credit: BYD Understand China EV’s Market Real-time notifications when critical EV data is released All important data in one place 2,000,000+ data points Become a member Chinese-made vehicles will account for 58% of Australia’s new car market by 2035, equivalent to nearly 900,000 vehicles annually, according to a new forecast from the Australian Automotive Dealer Association (AADA). June sales numbers revealed that China-made vehicles accounted for 35.5% of the Australian market. AADA also said recent sales data indicate the shift toward Chinese-made vehicles is occurring faster than previously expected. The latest projection is substantially higher than an earlier estimate published by the Australian Centre for International Economics, which forecast a 43% share by 2035. “The June new vehicle sales results show the [electric vehicle] transition is occurring more quickly than previously forecast, particularly for Chinese manufacturers,” AADA CEO James Voortman said. China has already overtaken Japan as Australia’s largest source of new vehicles. In June 2026, Australian buyers purchased 46,592 China-made vehicles, accounting for 35.5% of the market, according to VFACTS data. Japan ranked second with 27,098 vehicles, or 20.7%, followed by Thailand with 23,297 units, South Korea with 14,863 units, and Germany with 5,731 units. The shift is also visible in Australia’s brand rankings. Toyota remained the country’s best-selling automaker in June with 19,124 vehicles, but BYD followed with 18,881 units, a difference of just 243 vehicles. Chinese automakers GWM and Chery ranked eighth and ninth, respectively. AADA expects the number of brands competing in Australia to increase from 67 currently to 75 by 2031 as more automakers enter the market. Since 2010, ten new automotive brands have entered Australia, nine of which manufacture their vehicles in China. Electric vehicle adoption is accelerating Australian buyers registered 103,843 battery electric vehicles (BEVs) during the first half of 2026, up 119.8% year-on-year, according to data from the Federal Chamber of Automotive Industries (FCAI) and Electric Vehicle Council (EVC). BEVs accounted for 16.4% of Australia’s new vehicle market during the period, compared with 7.6% in the first half of 2025. BYD became Australia’s best-selling BEV brand in the first half of 2026, delivering 29,192 vehicles, up 241.2% year-on-year. Tesla followed with 23,588 units, up 66.7%. BYD consequently held 28.1% of Australia’s BEV market, compared with Tesla’s 22.3%. Geely ranked third with 6,756 BEVs, ahead of Kia with 6,204 units. Chery-owned Jaecoo ranked fifth, followed by Geely-owned Zeekr. Tesla retained the best-selling individual BEV model. The Model Y recorded 20,396 deliveries during the first half of the year, followed by the BYD Sealion 7 with 12,516 units and Geely EX5 with 6,756 units. In June alone, Australia recorded 32,570 BEV sales, equivalent to 23.3% of new vehicle sales. An estimated 80% of the BEVs sold in Australia during the month were manufactured in China. Chinese automakers are continuing to expand their Australian lineups. Xpeng, for example, recently announced plans to launch five vehicles in the country within six months, with Australia set to receive some products around the same time as their introduction in China. Australia becomes increasingly important for Chinese exports China exported more than one million vehicles in June 2026, according to Chinese industry data, marking the first time monthly vehicle exports exceeded that level. New energy vehicles (NEVs), including BEVs and plug-in hybrids (PHEVs), accounted for 523,000 units. Australia is particularly exposed to changes in global vehicle production because it no longer has large-scale domestic passenger car manufacturing and relies on imports. China’s growing share of Australian sales, therefore, reflects both the expansion of Chinese automakers overseas and a broader shift in the types of vehicles supplied to the market. AADA described the development as one of the most significant transformations in the history of Australia’s automotive market, driven by changing consumer preferences, electrification, and the arrival of new brands. Most important news in your inbox. Recaps · scheduled All you need, in one email. Instant alerts · real-time Ping me when an article goes live. 0 of 27 topics selected Bundle into one email per day — instead of one email per article No spam · Unsubscribe with one click · Change settings anytime
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