Flatlining sales hide widespread industry pressure

The number of car companies operating in Australia with year-on-year sales declines has gone up by 12.5 per cent.

Two-thirds of all local auto brands have now reported a sales decline in 2025 compared with 2024, according to data provided by the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council.

While 59 per cent of all brands that participate in the reporting saw negative overall sales in the 2024 calendar year, that number has now increased to more than 66 per cent in 2025.

As reported earlier this week, new vehicle sales in Australia essentially flatlined in 2025 – increasing by just 0.3 per cent – with only a handful of brands responsible for the slim growth.

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Chery, BYD, and Chinese newcomer Leapmotor all saw sales jump significantly in 2025, reporting increases of 177, 156, and 906 per cent respectively year-on-year – though Leapmotor only launched in Australia in late 2024.

Mounting pressure from an influx of new Chinese car brands – as well as growing lineups from more established Chinese automakers – meant China overtook Thailand to become the second largest supplier of new vehicles to Australia last year, behind Japan.

This, despite four out of Australia’s five most popular models being sourced from Thailand.

Compared with 2024, the number of new cars made in China increased by more than 25 per cent in 2025.