More than two in every five new cars sold in Australia will be made in China within 10 years, according to new research.

By 2035, 43 percent of all imported vehicles in Australia are projected to be manufactured in China, which is already the source of a large number of electric vehicle (EV) brands.

The predicted 10 year charge will see China surpass current leader, Japan, which sits on 22 percent of the market, and Thailand on 11 percent, according to a Centre for International Economics report released (pdf) on July 22.

“Not only is China gaining momentum in supplying vehicles to the Australian market, but they are also on track to become the dominant source of automotive imports by 2035,” it reads.

Vehicles manufactured in Japan accounted for 30 percent of new car sales in Australia this year, while those from China made up 16 percent, according to the Federal Chamber of Automotive Industries.

The report, commissioned by the Australian Automotive Dealer Association (AADA), was released at the 2025 AADA Convention & Expo in Brisbane to over 1,000 new car dealers and industry stakeholders.

Speaking on the research, James Voortman, CEO of AADA, noted that the growth of sales and new brands from China comes on top of the change to electric vehicle drive trains.

“This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties,” Voortman said.

The CEO promised that the association will be speaking with the Government about what consumer protections are adequate and appropriate to support Australian dealers and consumers in what is, on average, the second largest asset Australian’s buy in their lifetime.

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