A peak dealership body has revealed that Australians will likely see more Chinese electric vehicle (EV) brands in the market in the coming period.
Speaking at a recent parliamentary inquiry hearing, Australian Automotive Dealer Association (AADA) CEO James Voortman said the presence of Chinese manufacturers in the Australian car market will grow.
“We’ve seen a number of entrants come in over the last few years, predominantly Chinese brands,” he said.
“I think many of the new ones coming in the next 12 to 18 months are Chinese brands.
“There are a phenomenal number of brands on the Chinese market, and they’re all seeking export markets, including Australia. So that’s what the future is going to look like.”
Voortman also noted that Chinese manufacturers must undergo an approval process to sell their cars in Australia.
“This is a process where they seek type approval for those vehicles through the Department of Infrastructure and Transport,” he said.
“They'll then appoint a dealer network if they choose to get to distribute their vehicles through a franchise dealer network, and those dealers will then be required to be licensed under the various state government regimes.”
The vehicles also need to meet all of Australia’s safety standards and design rules, Voortman added.
“Any disruptions in China, whether natural or geopolitical, could impact car production and supply to the Australian and global markets,” it said.
The study also found that while Tesla was still the leading EV brand, Chinese brand BYD had become significantly popular among Australian motorists due to its lower prices.
Australians Reluctant to Buy Used EVs: Peak Body
At the same time, Voortman raised the issue of an oversupply of EVs on the used car market, as Australian consumers prefer to buy brand-new EVs.“There aren’t many vehicles, but there are even less sales,” he said.
One of the reasons was consumers found older EV models less attractive due to the rapid development of EV technology.
“There’s probably a view from the current consumers that the technology has sort of advanced in recent years and that you can get better range on your vehicle,” he said.
“As a consumer, you’re thinking, do I want to invest now? Do I want to outlay all this capital now and buy a vehicle that might not stack up against a future vehicle?”
Voortman said incentives from state governments and fringe benefits tax concessions also caused consumers to turn to a new EV.
“I think people who are investing in electric vehicles now are probably thinking about doing it for the next five to seven years and are happy to pay a higher upfront cost rather than going to the used car market.”
