Australia’s auto hierarchy is shifting as Chinese brands pile on the pressure

Australia’s automotive pecking order is being rapidly redrawn, with BYD cementing its place as the country’s second-biggest selling marque in September as Toyota, Ford, Kia, Mazda and Hyundai all lost ground.

The latest VFACTS figures show Chinese-built vehicles accounted for more than a third of all new cars sold during the month, as the accelerating shift towards electric and hybrid vehicles continues to reshape one of Australia’s biggest consumer markets.

BYD recorded 8,191 sales in September, up 61% from a year earlier, lifting its monthly market share from 5% to 8%. Only Toyota sold more vehicles, with 17,682 sales and a 17.2% share.

The broader picture is even more striking. China was the largest source of new vehicles sold in Australia during September, accounting for 35.5% of the market, ahead of Japan at 22.5% and South Korea at 9.6%.

SEE MORE: BYD eyes local status after 155% sales surge

Chinese marques are increasingly visible throughout the sales rankings. GWM sold 5,212 vehicles during September, MG 4,635 and Chery 4,205, while Geely surged from just 461 sales in September last year to 4,473, a massive spike of almost 620% thanks largely to its EX 5 model. 

EV growth is coming as several of Australia's established automotive heavyweights lose ground. Toyota's September market share slipped from 18% to 17.2% year-on-year, Ford fell from 8.1% to 7.4%, Kia from 7.2% to 5.7% and Hyundai from 6.4% to 4.9%.

Mazda's decline is particularly pronounced. The Japanese marque sold 5,702 vehicles in September, down from 7,692 in January this year, taking its monthly share to 5.5%. In January, Mazda was Australia's second-biggest selling marque behind Toyota, and despite sustained marketing activity and the arrival of a refreshed CX-5, has slipped into fifth in the latest VFACTS report.

The year-to-date figures suggest the changing competitive landscape is becoming entrenched.

BYD has more than doubled its share from 4.1% in the first nine months of 2025 to 8.4% this year, with 76,614 vehicles sold. Toyota remains comfortably ahead but its share has fallen from 19.9% to 16.7%.

Chery has climbed from 2.6% to 4.2% and GWM from 4.3% to 4.9%. Meanwhile, Ford, Kia, Mazda, Hyundai and Mitsubishi have all lost share.

The shift is happening alongside a rapid change in the types of vehicles Australians are buying.

Battery electric vehicles accounted for 24.2% of September sales, more than double their 11.3% share a year earlier. Plug-in hybrid sales jumped 122.7% and hybrid sales increased 20.7%, while petrol sales plunged 36.2% and diesel fell 18.4%.

Across the first nine months of 2026, battery electric vehicles have captured 18.9% of the market, compared with just 8.1% at the same point last year.

FCAI acting chief executive Dianne O’Hara said greater model choice and competition were accelerating the change.

“Australian motorists are embracing a broader range of powertrains, following greater model choice offered by manufacturers and growing competition,” O’Hara said.

“Many consumers are making practical decisions and selecting from the range of available technologies that best meet their needs.”

Overall new vehicle sales remained comparatively steady, rising 0.9% year-on-year to 102,924 in September.