Stagnant sales mask widespread industry pressures

The number of automotive companies operating in Australia that reported a year-on-year decline in sales increased by 12.5 percent.

According to the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council, two-thirds of all local auto brands have now reported a decline in sales in 2025 compared to 2024.

While 59 percent of all brands involved in the reporting recorded negative total sales in the 2024 calendar year, this number has now risen to over 66 percent in 2025.

As reported earlier this week, new car sales in Australia were essentially flat in 2025, rising just 0.3 percent, with just a handful of brands accounting for the modest growth.

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Chery, world, and Chinese newcomer jump motor All saw a significant increase in sales in 2025, reporting year-on-year increases of 177, 156 and 906 percent respectively – despite Leapmotor only launching in Australia in late 2024.

Increasing pressure from the influx of new Chinese car brands, as well as growing supply from more established Chinese automakers, saw China overtake Thailand last year to become Australia’s second-largest new car supplier after Japan.

This is despite the fact that four of the five most popular models in Australia come from Thailand.

Compared to 2024, the number of new cars manufactured in China increased by more than 25 percent in 2025.