Chinese-manufactured vehicles have overtaken Japan and South Korea to become the number-one source of new cars sold in Australia.
The milestone marks a dramatic transformation of Australia's automotive market amid deteriorating relations between Canberra and Beijing. According to data from the Federal Chamber of Automotive Industries, Chinese-built vehicles accounted for 21.3% of new car sales in February 2026, surpassing Japanese brands at 19.7%.
Mate, this is the story everyone in Canberra doesn't want to talk about. Ordinary Aussies are voting with their wallets for Chinese products even as politicians ramp up the anti-China rhetoric. It's economics versus geopolitics, and economics is winning.
The shift has been driven by the rapid rise of Chinese electric vehicle makers like BYD, MG (now Chinese-owned), GWM, and Geely. These brands have flooded the Australian market with competitively-priced EVs and plug-in hybrids at a time when European and Japanese automakers have been slower to offer affordable electric options.
Drive.com.au reports that Chinese brands have captured the entry-level EV market almost entirely. The BYD Atto 3 is now Australia's best-selling electric SUV, while MG's range has become the go-to choice for budget-conscious buyers.
The political timing couldn't be more awkward. As the Albanese government navigates trade tensions with Beijing and expands AUKUS military cooperation with Washington and London, Australian consumers are buying Chinese cars in record numbers.
one commenter noted on the Australia subreddit.
