Australia urged to halt new car brand entries

The Australian Automotive Dealer Association (AADA) has called on the federal government to pause the entry of new car brands into Australia, citing a 'crisis point' in the new-car retail industry. The association argues that its members are being overwhelmed by an influx of predominantly Chinese brands.

The AADA's recommendations include a pause on new brand entries, as well as calls for reforms to consumer laws and protections against unfair trading practices. The association claims that the current situation is unsustainable for dealers and is negatively impacting consumers and businesses.

According to the latest results, the industry recorded its first negative quarterly profit since the fourth quarter of 2008. The average net profit for new-car dealers in the third quarter of 2026 was -0.2 per cent, with fixed costs rising by over 30 per cent since the start of the pandemic.

Currently, 66 brands sell new passenger cars, SUVs, and light commercial vehicles in Australia, compared to 50 in 2021. Of the brands that have entered since then, only four are not Chinese. AADA-commissioned analysis shows Australia has 54 brands per one million annual sales, higher than in the UK, Canada, and Germany.

Australian new-vehicle sales have grown slightly since the start of the decade, reaching a record 1,241,037 units in 2025. However, the number of brands has outpaced overall sales growth, with 16 new brands added since 2021. The AADA warns that this trend could worsen if economic conditions dampen consumer confidence.

Several Chinese brands plan to enter the Australian market by 2027, including Avatr, Hongqi, JMC, Nevo, and Rox Motor. Chery alone is introducing multiple models, which will be sold through different dealer networks. This could push the number of brands to nearly 80 by 2028, overwhelming dealers.