Car Dealers Call for Pause on New Brands Entering Amid Chinese EV Surge

Australia’s peak automotive dealer body, AADA, is urging a halt to new car brands entering the market, citing intense competition that is negatively impacting local dealer sustainability. The number of car makes has risen significantly, largely due to new Chinese EV brands, resulting in aggressive discounting and reduced profit margins. The industry experienced its first quarterly negative profitability since the Global Financial Crisis in the September quarter.

• Australia’s peak automotive dealer body (AADA) wants to pause new car brands entering the country.
• The number of car makes in Australia increased from 39 in 2021 to 67 in 2026, driven by Chinese EV brands.
• This influx has led to aggressive discounting, excess inventory, and shrinking profit margins for local dealers.
• The industry recorded its first negative quarterly profitability since the Global Financial Crisis in the September quarter.