China has become the largest exporter of vehicles to Australia this year, overtaking Japan, which for many years has dominated the local market. According to Australian government data, imports of built-up vehicles from China amounted to 36,000 units in April, driven by strong demand for battery-electric and hybrid-electric vehicles.

The data show that imports of built-up vehicles from Japan amounted to 29,000 units, making the country the second-largest exporter of vehicles to Australia.

Fuel prices in Australia have increased significantly this year due to the conflict in the Middle East, driving up demand for BEVs and fuel-efficient vehicles.  Chinese brands such as BYD, GWM, Chery, and MG, have significantly expanded their sales networks in the country in the last year.

In the first four months of 2026, vehicles imported from China increased by 51% to over 100,000 units, of which more than 40,000 units were BEVs.

Data from the Federal Chamber of Automotive Industries (FCAI) show that Toyota remains the leading automotive brand in Australia, with BYD moving into second place.

Japanese automakers also export significant volumes of vehicles to Australia from Thailand, particularly pickup trucks.