Chinese carmakers help fuel Australia's EV shift

Australia's auto sector reached new highs, with Chinese carmakers fueling a major green shift to electric vehicles, according to latest analysis.

The market "remained very strong in August, with Chinese manufacturers occupying half of the top 10 brands and demand for battery electric vehicles remaining at elevated levels", the Federal Chamber of Automotive Industries said in a statement in September.

The industry recorded 100,939 sales in August, up 0.4 percent year-on-year, with 27,089 battery-electric vehicles alone sold, representing nearly one-quarter of the entire new vehicle market and a 171 percent increase year-on-year – the highest number of BEVs sold in one month in Australia, it said.

Major Chinese carmakers — such as BYD, Chery, Geely, and GWM — took up half of the top 10 brands and highest-selling models.

Tony Weber, chief executive of the FCAI, said the market is undergoing a significant structural shift and the "sustained level of BEV sales, together with changing brand preferences", show how quickly consumer choice and competition are reshaping the market.

Hussein Dia, professor of transport technology and sustainability at the Swinburne University of Technology in Melbourne, told China Daily the "growing presence of Chinese manufacturers is now a major feature of the Australian market".

"Their progress reflects a combination of competitive pricing, rapidly improving battery technology, strong manufacturing scale, generous equipment levels, and an expanding range of vehicles that fit Australian preferences," he said, adding that the carmakers have also been able to bring new models to market very quickly, which has intensified competition and given Australian consumers considerably more choice.

"Chinese brands are no longer peripheral entrants to the Australian market. They are increasingly helping to set the pace of competition," Dia said.

He also said that the latest figures are important because they point to a structural transformation in Australia's vehicle market rather than simply another strong month for EV sales.

With almost one in four new vehicles sold being fully electric, EVs can no longer really be regarded as a niche part of the Australian market, he said.

At the opening of the Everything Electric annual EV industry show in Sydney on Sept 18, there was a record 12 vehicle launches in a showcase of over 100 models, with organizers expecting more than 40,000 visitors at the three-day event positioned as the largest of its kind in the Southern Hemisphere.

Everything Electric's global CEO Dan Caesar told China Daily that China is "a key part of the story at the moment", with Chinese carmakers at the forefront of the EV push.

"The reality is a show like this wouldn't be possible without the Chinese manufacturers," he said, adding that they have created intense competition in the Australian market with the cost, value, and technology of their products.

"Loads of consumers are trying out these cars and finding out that they're really good, the quality of the product is beyond doubt," he said.

Lewis Lu, CEO of Chery Motor Australia and New Zealand, told China Daily that the Chinese brands have made huge progress in technology, design, quality, and overall value.

"For Chery, one of our biggest strengths is our long-term investment in technology and R&D," he said. "But more importantly, we need to turn that technology into products that really suit Australian consumers."

"People use their cars for daily commuting, but also for long-distance and family travel, if a brand can really establish itself here, it's a good test of both its products and its local capabilities."

"For Chery, we have never viewed Australia as a short-term market," Lu said. "We have grown quite quickly over the past few years, but our next stage is really about higher-quality growth."

"I always believe that real success is not about how fast you enter a market," he said. "It's about how far you can go. And Chery is here for the long term."

Anthony Crawford, co-founder of automotive review platform CarExpert, told China Daily that Australia is considered the most important car market "to validate products before they go global".

"You have to provide an exceptional product to gain the confidence and trust of Australians who are naturally wary of new players," he said.

"But the Chinese have done it very quickly and now it's accelerating to the point where people go straight for the Chinese vehicle."

Dia, from Swinburne University of Technology, said that overall, "Australia has reached an interesting point in its EV transition".

"The question is becoming less about whether manufacturers can supply attractive electric vehicles and more about whether charging, servicing, energy infrastructure, and consumer support can develop quickly enough around them," he said, adding that the next phase of the EV transition will not be won in the showroom alone but also "at charging stations, in apartment car parks, in workshops, and in the quality of the ownership experience".