BYD and Kia Crack Australia's Top 3 as New Brands Reshape the Market

For the first time, two non-traditional brands have broken into Australia's top three best-selling car manufacturers. BYD and Kia finished second and third behind Toyota in March, pushing Ford, Mazda, and Hyundai down the rankings.

The March VFACTS data shows 108,703 new vehicles were delivered last month, down 2.6% on last year. But the real story isn't the total. It's who's selling and where the cars are coming from. Four Chinese brands now sit in Australia's top 10 sellers, and China has overtaken Japan as the number one source country for new cars sold here.

More competition, better deals for buyers

Toyota still leads with 16,574 sales. But the gap between second and sixth place is razor-thin: just 341 units separate Kia (7,320) from Hyundai (6,979). That kind of competition is good news if you're buying.

BYD's 50% sales growth came from new models at price points that barely existed two years ago. Entry-level options now start under $25,000. Kia grew on the back of affordable models like the EV3 and K4. And Chery, GWM, and MG are all pushing hard with competitive pricing across SUVs and passenger cars.

The practical result: Australians have more models to choose from, across more price points, from more brands than at any point in the last decade.

China overtakes Japan as top source country

China accounted for 30,993 vehicles delivered in March, up 45.1% on last year. Japan fell to 26,982, down 20.4%. For the full first quarter, China-sourced vehicles totalled 69,970, up 52.9% year on year.

This shift isn't just about electric vehicles. Chinese manufacturers are competing across SUVs, light commercials, and passenger cars. The Chery Tiggo 4 Pro, for example, is outselling established SUVs from Mitsubishi and Mazda on price and features.

What's driving the shift

Two forces are at work. First, global manufacturers are competing harder for the Australian market, pricing aggressively to win share. Second, the fuel supply disruption from the Middle East conflict has pushed buyers toward more fuel-efficient options. Petrol vehicle sales fell 20.8% in March, while electric and hybrid sales surged.

The FCAI noted the shift may partly reflect short-term fuel uncertainty rather than a permanent structural change. But the pricing competition is structural. More brands in the market means more pressure on everyone to offer better value.

What to do if you're buying

If you're in the market for a new vehicle, the competition works in your favour.

• Compare across brands, not just within them. A BYD or Chery may offer similar features to a Toyota or Mazda at a lower price. Don't limit your shortlist to names you already know.
• Check warranty and service coverage. Newer brands often offer longer warranties to attract buyers. Make sure there's a service centre within reasonable distance.
• Watch for run-out and clearance deals. When newer competitors take market share, established brands respond with aggressive pricing on existing stock.
• Consider total cost of ownership. A lower sticker price doesn't always mean lower running costs. Check fuel economy, insurance quotes, and expected resale value before committing.

For business buyers weighing up a fleet purchase or a new work vehicle, the same dynamics apply. More competition means more room to negotiate.

This article is general information only and is not financial advice.