Dealerships across Australia are increasingly replacing long-established European and Japanese brands with Chinese models as buyers shift toward cheaper imports. The change is reshaping suburban showrooms and adding pressure to traditional brands that once had a strong presence in the local market.

A peak dealer body estimates the trend could go much further, with around half of all new cars sold in Australia potentially being made in China within the next decade. That projection underlines how quickly Chinese manufacturers are expanding and how sharply the competitive landscape is changing for dealers.

Electric vehicles are a major part of that transition. EVs accounted for 35.8 per cent of sales in June, according to the report, with demand helped by uncertainty over fuel prices during the conflict in the Middle East. Chinese carmakers have been particularly aggressive in the EV market, where lower pricing has helped them gain attention from both buyers and dealerships.

For dealers, the shift is creating a harsher market environment as they adjust their line-ups to match demand. For consumers, it points to a future in which more China-made vehicles appear in Australian suburbs while some familiar legacy brands become less visible on dealership lots.