Highlights
- China is Australia's fourth-largest source of motor vehicles after strong sales throughout 2021
- The market for Chinese car brands in Australia is expanding while new car sales overall dipped 9.7 per cent in June, VFACTS data produced by the Federal Chamber of Automotive Industries (FCAI) reveals
- Seven in every 100 new cars sold in Australia last year were from made in China, according to VFACTS data.
Cici Yang said she had never thought that she would buy a Chinese car brand, let alone two at once.
As a fan of large-sized vehicles, the 28-year-old mother of two from the Gold Coast was considering buying either a Toyota or Kia before her husband introduced her to Chinese car brand, LDV.
Shortly after watching a videoclip about the car, Ms Yang and her husband visited a showroom to take a model for a test drive, after which she ordered two cars on the spot - a LDV D90 for herself for $48,000 and a LDV G10 ($30,000) for her husband.
Ms Yang says she was obsessed with the car’s look before later realising its shortcomings.
“It’s like a Mercedes-Benz with a different logo,” Ms Yang told SBS Chinese.
Latest figures from the Federal Chamber of Automotive Industries (FCAI), the peak body of the nation’s automotive industry, show the Chinese car market in Australia is quickly expanding, with total sales surging from 17,913 in 2019 to 76,262 in 2021 (up 325.7 per cent).
After strong sales throughout 2021, China has now become Australia's fourth-largest source of motor vehicles for the first time, behind Japan, Thailand and South Korea - overtaking the United States and Germany.
Cici Yang said her LDV was an ideal family car but was surprised how much its value had depreciated in two years. Source: Supplied
The figures not only include Chinese cars, but also other brands that are made in China, such as Tesla models 3 and Y, Volvo XC60 and XC40, and Polestar 2.
MG, originally founded in the United Kingdom and bought by the Shanghai Automotive Industry Corporation () in 2007, was the first Chinese car brand to be ranked amongst the top 10 automotive brands in Australia by sales volume.
It was ranked seventh in the year-to-date sales tally (24,507 units, up 25 per cent) based on the latest VFACTS data.
The Chinese car market in Australia is expanding. Source: VFACTS
MG 3 was the best-selling small car in Australia in 2021 (13,774 units), while the MG ZS was the number one selling small SUV (18,423 units) in the same period.
What drives people to buy a Chinese car?
As an owner of an LDV, Ms Yang said she believed she scored “a good deal” and added she has received a lot of attention from others while driving on the road.
“Many drivers at the traffic lights have asked where my fancy car was from,” she said.
"I also felt a sense of national pride [while driving]. Wherever I go, I like to talk about my car. I tell people to look at it. It's made in China."
Although Ms Yang had considered her LDV her “pride and joy”, she said she sold it after two years for half the original price.
“I do a lot of motorway driving in Queensland and found the car was insufficiently powered,” she said.
“It felt lighter than Japanese or European cars. When I was driving on the motorway, it felt like I was floating around a bit, which made me worry.
MG was bought by Shanghai Automotive Industry Corporation in 2007. Source: VFACTS
“Chinese cars generally look good aesthetically, but the quality isn’t as good as German cars. It's like a Chinese-made mobile phone. Though it is functional, the quality is average.”
Jordan Ma, owner of an auto repair shop in Oakleigh, in Melbourne’s south-east, agreed and said that Chinese cars had a price advantage in the Australian market.
"For example, LDV has a seven-seater model that costs less than $40,000. It's relatively well-equipped. So, it would be the first choice for an average income family with more than one child,” Mr Ma said.
But he told SBS Chinese that he had rarely seen motorists with a Chinese car in his 18-year career as a mechanic.
“I think Chinese cars only take up one small chunk of the whole Australian vehicle market,” Mr Ma said.
He said he believed one of the reasons why motorists hesitated to buy a Chinese-made cars overseas was the inconvenience of repair, especially during a pandemic.
It may take up to six months to order spare auto parts from the Chinese manufacturer and have them delivered to Australia.
“That's why many car repair services don't advise customers buy Chinese-made cars. It takes too long to repair them," Mr Ma said.
Mechanic Jordan Ma says there have been delays ordering spare parts for Chinese cars. Source: Supplied
However, Chinese cars tend to have a longer warranty. For example, both and offer a seven-year unlimited warranty, compared to three to five years for most other car brands.
What to expect from Chinese cars?
FCAI Chief Executive Tony Weber said the fallout from the COVID-19 pandemic continued to hamper automotive manufacturing.
Australian new vehicle sales dipped 9.7 per cent in June, according to the latest VACTS report.
“This, combined with the war in Ukraine and shipping issues, means that the supply of new vehicles hitting Australia’s shores cannot keep up with demand,” he said in a press release earlier this month.
Nevertheless, data shows that Chinese car sales in Australia are accelerating rapidly.
In the VFACTS June car sales figures, GWM/Haval broke its volume record at 2440, reaching an all-time best of 13th place and holding 2.4 per cent of the market.
As a growing Chinese car brand who has tripled its sales in 2021, it is expecting to see further growth for the rest of 2022.
Steve Maciver, head of marketing and communications at GWM/Haval, told SBS Chinese that they expected to sell more than 20,000 new SUVs and utes this year, an 8.8 per cent increase on last year’s sales (18,384 units).
“Supply challenges have minimised growth in the first half of the year, but we are confident of increased supply moving forward,” Mr Maciver said.
“The addition of new products such as the H6 Hybrid and H6GT amongst others along with a growing dealer network will also help to achieve continued growth.”
