Australia’s automotive market is on the brink of a significant transformation, with projections indicating an influx of vehicle brands that will elevate the number of manufacturers selling locally to 67 this year and a staggering 75 by 2031. This development, based on new data from the Australian Automotive Dealer Association (AADA) and automotive modeling firm Blue Flag, underscores a dramatic shift towards a highly competitive landscape.
The data reveals that eight new brands are poised to enter the Australian market by 2026, contributing to a total of 28 new brands by 2031. This rapid expansion positions Australia as one of the most competitive auto markets globally, with China spearheading this influx of new entrants.
Chinese Brands Leading the Charge
Among the new arrivals, Chinese automaker Forthing, a subsidiary of the state-owned Dongfeng group, has confirmed plans to launch its electric SUV and a people mover in Australia. This move is part of a broader trend, as Chinese electric vehicle brands like XPeng and Leapmotor made their Australian debut in late 2024, followed by GAC Motors in late 2025.
James Voortman, AADA Chief Executive, expressed concerns over the market saturation, stating,
“We are currently seeing an overflooding of the Australian market with new brands coming thick and fast.”
Despite these concerns, the appeal of new entrants is evident. Chinese brands such as BYD and GWM have quickly gained popularity, securing positions in Australia’s top 10 new car brands by 2025. Analysts estimate that Chinese manufacturers already represent 10% of the new car market, a figure expected to rise as more brands establish a presence.
Australia as a Testing Ground
The AADA’s modeling suggests that Australia is becoming a testing ground for new brands, particularly electric vehicle manufacturers. Voortman noted that these companies are attracted to Australia’s favorable policy settings, which allow them to test their products in a western market with relatively low investment compared to other western countries.
However, Voortman cautions that not all new brands will thrive.
“What is obvious is that not all these new, and even established brands, will be able to compete long term. Australian drivers will always be attracted to value-based products that offer a quality experience, but more so, a quality after-sales experience with reliable and timely servicing and repair work. Brands that cannot compete on that level will struggle,”
he said.
Regulatory Challenges and Government Response
This influx of brands comes as the Albanese Government seeks to enhance protections within the franchising sector. The AADA has urged the government to expedite its election commitment to strengthen these protections before market consolidation takes hold.
The association highlighted the recent Federal Court decision involving Australian dealers and Mercedes-Benz AG as a case in point, emphasizing that current franchising laws do not adequately shield local businesses from the power imbalances exploited by global franchisors.
Voortman called on the government to legislate the promised Unfair Trading Practice regime, stating,
“The Albanese Government must move to legislate on their election commitment to introduce an Unfair Trading Practices regime to protect franchised new car dealers, which will give them confidence to invest in the transition to electric vehicles.”
Looking Ahead
As Australia braces for this influx of automotive brands, the implications for consumers and the industry are profound. While consumers may benefit from increased choice and potentially lower prices, the challenge for new and existing brands will be to maintain a competitive edge through quality and service.
The AADA’s call for regulatory reform highlights the need for a balanced approach that protects local businesses while fostering innovation and competition. As the market evolves, the ability of brands to adapt to these dynamics will determine their success in Australia’s burgeoning auto landscape.
