Chinese automakers are moving to pole position in the Australian market and are set to become the leading suppliers of new vehicles in the country in the coming decade, amid rising demand linked to the green transition, according to the latest industry analysis.

"China is gaining momentum in supplying vehicles to the Australian market" and is on track to become the major source of automotive imports by 2035, with 43 percent of all new vehicles sold by that time coming from the country, research findings released by the Australian Automotive Dealer Association on July 22 showed.

The "rapid growth of imports from China will fundamentally change the Australian automotive landscape", according to a statement from the association, which positions itself as the peak industry advocacy body representing franchised new car and truck dealers in Australia.

There are over 3,700 car and truck dealerships, ranging from family-owned small businesses to larger and publicly owned businesses operating across Australia, it said.

"Some of the Chinese brands are becoming so sophisticated that we hope they will soon launch dealer councils like the brands that currently dominate in Australia," the association's CEO James Voortman told China Daily.

The association cited a convergence of factors fueling the growth of Chinese suppliers in the sector — Australian policy incentives, such as a new vehicle efficiency standard that favors zero-emission vehicles, rising local demand for low-emission options, China's lower production costs, and its strategic specialization in key segments like electric vehicles.

Amid the growth trends, Voortman also highlighted some of the challenges in the sector, such as "the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties".

The association will be working on appropriate support for Australian dealers and consumers, he said.

EV sales in Australia recorded a strong start this year, outpacing the growth posted in the first half of 2024, according to the Electric Vehicle Council, the main national body representing Australia's EV sector.

"The growth is being driven by a rise in consumer demand. EV sales in Australia are powering ahead this year, with more than 14,000 additional electric vehicles sold in Australia so far in 2025, compared to the same period the year before," the council's CEO Julie Delvecchio told China Daily.

"Increased competition across EV brands and models in the Australian market is driving sustained uptake, with Chinese automakers emerging as major contributors," she said.

Delvecchio said that Chinese EV automakers are "playing a transformative role in Australia's auto sector, bringing competitive pricing and more choice, and supporting EV adoption across different customer groups".

The availability of "affordable, high-quality vehicles from Chinese EV automakers will be a key part of meeting growing demand and achieving national climate goals", she said.

"Chinese automakers have captured significant EV market share in Australia, provoking shifts in pricing, consumer expectations, and industry competition," Delvecchio said.

The growth also brings challenges, including building more charging infrastructure to sufficiently meet the demand. That will require "coordinated investment and regulatory reform to ensure Australia's EV transition is both rapid and resilient", Delvecchio said.

New vehicle sales across Australia totaled 122,509 units in June, marking a 2.4 percent increase over the same month last year, according to a statement from the Federal Chamber of Automotive Industries in early July. "Australia remains one of the most open and competitive markets in the world, where consumers have a wide range of choice across all market segments," said Tony Weber, the chamber's chief executive.

alexishooi@chinadaily.com.cn