China overtakes Japan as Australia’s largest vehicle source for first time in 28 years

China has overtaken Japan as Australia’s largest source of vehicles for the first time in nearly three decades, underscoring the rapid rise of Chinese automotive brands across the market.

According to figures released by the Federal Chamber of Automotive Industries (FCAI), 22,362 vehicles sourced from China were sold in Australia in February 2026, surpassing Japan (21,671), Thailand (19,493) and South Korea (11,913).

“After 28 years, Japan has been overtaken by China as the largest source of vehicles for the Australian market in a single month,” FCAI chief executive Tony Weber said.

While the milestone may appear sudden, the shift has been building for several years as Chinese manufacturers rapidly expand their presence in Australia.

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Since 2020, 10 new brands have entered the local market. Six launched in the past two years, while nine of the 10 new entrants manufacture vehicles in China.

Much of that growth has been driven by brands such as BYD and Great Wall Motor (GWM), which have aggressively expanded their product range while investing heavily in pricing strategy, electric vehicle technology and brand visibility.

BYD in particular has emerged as one of the fastest-growing automotive brands in the country. The Chinese automaker recently reported a sharp rise in Australian sales, with its market share climbing from 1.7% to 4.3% within 12 months. With 52,415 vehicle sales, BYD’s local volume jumped 156% year-on-year, marking the strongest growth of any major marque.

That surge is part of a broader shift in the Australian market, where vehicles manufactured in China now account for roughly 18% of total sales, trailing only Japan and Thailand.

The shift is also increasingly visible beyond the showroom floor.

Chinese automotive brands have become some of the most aggressive marketers in the category over the past year, ramping up sponsorship activity, new model launches and brand campaigns as they compete for attention in one of the world’s most competitive auto markets.

GWM, for example, recently staged a high-profile activation tied to its Winter Olympic and Paralympic broadcast partnership, sending a Tank 500 plug-in hybrid down a technical downhill slalom course at one of New Zealand’s steepest alpine resorts to launch its Hi4-T hybrid technology.

FCAI said the Australian market remains one of the most open and competitive globally, allowing new brands to quickly establish dealer networks and compete on price, technology and design.

“The Australian market is one of the most open and competitive in the world. New brands can enter, establish dealer networks and compete on price, technology and design. Consumers are the beneficiaries of that competition,” Weber said.

Australia’s new vehicle market recorded 90,712 sales in February, down 4.5% compared with the same period last year.

But with Chinese manufacturers rapidly expanding their presence through electric vehicles, competitive pricing and increasingly visible marketing strategies, the shift in supply signals a deeper transformation of Australia’s automotive landscape.