How an avalanche of new car brands are set to transform the Aussie market

A huge experiment is about to unfold in the Australian new car market, and the entire motoring world will be watching.

By my count, 10 new brands headquartered and manufacturing cars in China are set to arrive in Australia in the next handful of years. In no particular order: GAC Motors, Aion, Geely Auto, Zeekr, Lynk & Co, Leapmotor, Xpeng, Skywell, Jaecoo and Jetour.

They will join the existing 10 marques already hailing from that country: LDV, BYD, Chery, MG, GWM, JAC and including Volvo, Polestar, Smart and Lotus. Another four are potentially mooted for Aussie shores – Aiways, Changan, Nio and IM Motors – and I’m certain just as many others have at least thought about it. There are, after all, 119 brands in China making electric vehicles.

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Leapmotor B10

In Australia’s case, that’s approximately 20 to 25 brands, most of which didn’t exist here that long ago. Half an issue of Wheels will be the Databank section in the back.

Many of these brands I’ve never heard of – and I’d hardly describe myself as living under a motoring industry rock.

The influx of Chinese brands into Australia is being driven by an overcapacity of manufacturing in China itself, coupled with a soft domestic market – and other Western countries whacking Chinese-made cars with tariffs. Of course, and sadly, we no longer have any cars to protect.

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Jaecoo J7

For the brands that are here, the Australian new car market was already a crowded place. The next five years or so are going to be interesting. And possibly unpleasant.

It’s been fascinating to sit across from several Australian automotive executives in the last few months and get their take, which has generally been a cool and collected one – with plenty of knowledge of the brands that are coming and their cars. They’re watching closely.

“We know we’ve got to continue working hard,” said Sean Hanley recently, Vice President for Sales and Marketing of Australia’s biggest car brand – Toyota.

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Leapmotor C10

“It’s a super competitive market. It’s going to get more competitive, there’s no doubt. We have the entry of many new brands – I think someone was suggesting we could have up to 70 brands in a market of 1.2 million. It’s an interesting time.”

Many of the new brands in Australia won’t last, say some executives. “No doubt you’ll write about the new entrants and dress it up as you will, but we’re a long-term company and we’re here for the long run,” said Hanley.

Predictably, existing importers will play the we’re-here-for-the-long-haul card. But if you ask me, it won’t just be new brands from China that falter. Some legacy ones might have to exit the market, too. Citroën might just be the beginning.

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XPeng G6

The government’s New Vehicle Efficiency Standard (NVES) adds to the pain. Beginning on 1 January 2025, it represents an unhappy new year for many existing Australian importers. No such problem if you only sell EVs, as is the case with many China-based brands.

While the eventual winners and losers in the Australian car market remain to be seen, there’s one surefire winner: you. In China itself, the new car industry is Darwinian – engineers and designers battle to outdo each other out of necessity. That means more interesting and better cars, many of which will be coming to Australia.

There’ll be something for everyone – off-roaders, SUVs, hatchbacks and sedans. And we aren’t talking a torrent of MG ZS-type vehicles. Lots of these cars from these companies are clever and original – even decently built. Some of that you can’t say about many of the cars from traditional car-makers today.

What’s about to happen in Australia could be the wake-up call they need.