Chinese EVs on rise Down Under

Australia's vehicle sector continued its upward trajectory, with Chinese carmakers a major force amid a green and technological shift that also offers opportunities for cross-border collaboration, according to the latest industry analysis.

Australia's new vehicle market recorded 102,924 sales in September, up 0.9 percent year on year, the Federal Chamber of Automotive Industries (FCAI) said in a statement on Oct 6.

Battery electric vehicle (EV) sales from all sources accounted for 24.2 percent of the market in September, up from 11.3 percent for the same period last year, it said.

China was the largest source of all vehicles sold in September, supplying 35.5 percent of the market, with EVs from major brands like BYD and Geely among the top sellers.

Dianne O'Hara, the FCAI's acting chief executive, said the latest figures reflected the sustained shift toward EVs.

"The changes seen throughout this year are continuing. Many consumers are making practical decisions and selecting from the range of available technologies that best meet their needs," O'Hara said.

James Voortman, CEO of the Australian Automotive Dealer Association (AADA), told China Daily that Australia's automotive market is undergoing significant change, with consumers accessing more brands, technologies, and vehicle types than ever before, accelerating the transition toward electrification.

The transition is also being driven by advances in connected vehicle technologies, software integration and vehicle safety systems, said Voortman, whose organization is the peak industry advocacy body representing franchised new car and truck dealers in the country.

"Chinese manufacturers are now a major force in Australia's automotive market and are playing an increasingly important role in the transition towards electrified and connected vehicles," Voortman said.

"Their success reflects the competitiveness of their products … For Australian consumers, this has meant greater choice, increased competition, and access to new technologies across a wider range of price points," he said.

Voortman said AADA analysis suggested Chinese brands could account for about 58 percent of Australia's new vehicle market by 2035, "highlighting the increasingly important role they are likely to play in shaping the future direction of Australia's automotive sector".

He added that Australia has also become an important market for understanding global automotive trends, with developments in Australia attracting attention from manufacturers worldwide.

"Australian consumers have access to an unusually broad range of brands and technologies, making the market an important indicator of future industry trends," Voortman said.

Julie Delvecchio, CEO of the Electric Vehicle Council, said in a statement that the latest figures showed "a huge milestone in Australia's transition to electric transport", with "a sustained change extending well beyond a single strong month. Australian consumers are showing us clearly what they want".

She said the focus now needs to be on improving EV charging and "making it easier for more households and businesses to choose electric".

At Sydney's Everything Electric major auto show in late September, Ric Black, production manager at a vehicle accessories supplier, said the new Chinese models meet Australian motorists' needs.

"They're doing something great, looking at what the consumer wants and providing the right products," he said.

Voortman, from the AADA, said that Australia and China are increasingly connected through the automotive sector, noting the association's visit to a major industry conference in Beijing later this month "provides an opportunity to strengthen industry-to-industry relationships at a time of rapid market transformation".

"(The) AADA's priority is to share insights on Australia's rapidly evolving automotive market while learning from global developments in vehicle electrification, intelligent connectivity and automotive retailing," Voortman said of the World Intelligent Connected Vehicles Conference.

"During our visit to Beijing, we will present on the Australian market and engage with government representatives, vehicle manufacturers, industry associations and automotive leaders from around the world," he said.

Key discussion themes include the dialogue between manufacturers and dealers, helping manufacturers better understand customer expectations, local market conditions, and emerging challenges, Voortman said.

"There are significant opportunities for Australian and Chinese stakeholders to learn from one another," he said.

"Australia offers insights into consumer behaviour and vehicle retailing in one of the world's most competitive markets, while China has become a global leader in electric vehicles, battery technologies, connected vehicles, and automotive innovation."