Car industry needs to prepare for influx of Chinese brands

According to Drive, there are approximately 600,000 Chinese cars have been purchased in Australia since the first models arrived 15 years ago.

There are currently more than 40 models on sale in Australia which are manufactured in China, with a further dozen estimated models on the horizon – many of which are electric or hybrid.

IN 2023, China leapt to third in the country of origin for new vehicles, behind Japan and Thailand.

In 2023 electric vehicles produced in China nearly tripled in Australia, up 174 per cent compared to 2022 when as recently 2018 it sold no electric cars.

The New Vehicle Efficiency Standard (NVES) is set to come into effect on January 1st, 2025. The new host of regulations are designed to lower tailpipe emissions and improve fuel economy.

The expected influx of Chinese cars is predicted to disrupt the current automotive climate in Australia, particularly as the industry responds to the NVES.

MTAA CEO Matt Hobbs has regularly signalled the NVES as heralding a major change to the car parc, one the repair industry needed support from government to get ready for.

He quoted figures to show there is predicted to be 160 mew models of EV by 2029 and this was exemplified by the rise of China which had gone from 3.5 per cent of new vehicles to 16 per cent in three years.

“The car companies have to meet the fleet mix, but the rest of the supply chain has to be ready for them,” Hobbs said at NCR‘s Symposium 24.

This month the AAAA has also ramped up its call for government subsidies and policy action to meet this demand and ensure the aftermarket can service and repair these vehicles after they are purchased.

“It’s relevant to the whole industry because repairers have to fix them, others have to recycle them but most importantly the repairers have to get them back on the road quickly and efficiently. And this is taking into account a whole lot of brands we don’t even have on the market yet.”