Car Dealers Call for Pause on New Brands Entering Amid Chinese EV Surge
Industry group warns overseas competition is squeezing local dealerships as Chinese manufacturers expand their share of Australia's vehicle market.
TL;DR
- Australia's peak automotive dealer body (AADA) wants to pause new car brands entering the country.
- The number of car makes in Australia increased from 39 in 2021 to 67 in 2026, driven by Chinese EV brands.
- This influx has led to aggressive discounting, excess inventory, and shrinking profit margins for local dealers.
- The industry recorded its first negative quarterly profitability since the Global Financial Crisis in the September quarter.