Chinese automakers consolidated their position in the Australian market in 2025, with China ranking as the third-largest source of new vehicles amid continued growth in electric vehicle sales, industry data show.

Chinese manufacturers accounted for about 18% of all new vehicle sales last year, up from around 14% in 2024, according to figures from the industry body representing new vehicle distributors.

Australia's new vehicle market recorded overall growth during the year.

Three Chinese automakers ranked among Australia's top ten best-selling vehicle brands in 2025, compared with two in 2024.

Another Chinese brand was reported as the fastest-growing marque of the year, recording sales growth of 176.8%. The industry body said China has consolidated its position as a major vehicle source for Australia.

All new vehicles sold in Australia are now imported, following the end of local vehicle manufacturing in 2017.

"China's position as one of Australia's largest sources of new vehicles reflects the continued diversification of global automotive supply chains and the growing breadth of products available to Australian consumers across all engine types," said an industry representative, adding that Asia now accounts for more than four in five new vehicles sold in Australia.

Australia's vehicle market is undergoing a rapid shift, with battery-electric and hybrid vehicles reshaping the product landscape and competitive dynamics.

Industry data show that battery-electric vehicles accounted for 8.3% of total vehicle sales last year.

Plug-in hybrid vehicles recorded the strongest growth, with sales more than doubling year on year, representing an increase of 130.9% compared with 2024.

Hybrid vehicles also continued to gain momentum, recording a 15.3% year-on-year increase.

"Many consumers are choosing hybrid and plug-in hybrid vehicles as a practical transition towards lower emissions," said an industry executive. "While the sector is investing heavily in battery-electric technology, uptake ultimately depends on consumer readiness and the availability of reliable public recharging infrastructure."

Industry data indicated that electric vehicle adoption continued to rise during the first half of 2025.

Best-selling models

Three models from a Chinese manufacturer ranked among the country's top five best-selling electric vehicles during the period.

Australia's electric vehicle fleet has continued to expand nationwide, based on the latest annual figures.

An industry representative said Australians are choosing electric vehicles in increasing numbers due to lower running costs, reduced emissions and quieter operation.

To remain on track with Australia's 2035 emissions reduction target, annual electric vehicle sales would need to rise significantly this year, the representative added.

Another industry spokesperson said demand for vehicles offered at competitive prices is expected to keep Chinese brands an important part of the Australian market in 2026 and beyond, supported by further growth and the introduction of new products.