China Dethrones Japan as Number One Source of New Vehicles in Australia

By Ben McKimm - News

Published: 4 Mar 2026

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Readtime: 4 min

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• China officially ends Japan’s 28-year run as Australia’s top vehicle source.
• Chinese-made imports rose 45.1% compared to February 2025 figures.
• China led Japan by over 4,000 units, including EVC data.
• Tesla, Kia, and Hyundai increasingly source Australian models from China.
• Toyota remains the top brand despite a 27.8% sales drop.

Japan’s 28-year run as the top has officially ended today, as February 2026 VFACTS sales figures revealed that China has taken the crown as the number one source of new vehicles in Australia. With 22,362 Chinese-made vehicles delivered during the month, it narrowly edged out Japan’s 21,671 units. This represents a massive 45.1% volume increase for Chinese imports compared to February 2025, according to VFACTS.

It’s important to note that official VFACTS data excludes sales figures from OEMs that report exclusively to the Electric Vehicle Council (EVC), and when we combine these figures, China’s lead widens further. The EVC reported an additional 3,419 vehicle sales in February 2026. Tesla accounted for 3,274 of these units, while Polestar contributed 145. Because the Australian-delivered vehicles for both of these brands are manufactured in China, adding these numbers significantly raises the true volume of Chinese imports above the baseline VFACTS data suggests.

China’s lead grows to 25,781 units (22,362 from VFACTS + 3,419 from EVC), while Japan remains at 21,671 units, followed by Thailand (19,493 units) and Korea (11,913 units).

Top Selling Car Brands in Australia (February 2026)

These are the top-selling car brands in Australia:

• Toyota: 13,606 units (Down 27.8%)
• Mazda: 7,042 units (Down 19.9%)
• Ford: 6,907 units (Up 9.0%)
• Kia: 6,710 units (Flat / 0.0%)
• Hyundai: 6,266 units (Up 4.5%)
• BYD: 5,323 units (Up 62.2%)
• Mitsubishi: 4,755 units (Down 22.3%)
• GWM: 4,689 units (Up 24.9%)
• Chery: 3,938 units (Up 93.2%)
• Isuzu Ute: 3,384 units (Up 23.7%)
• Tesla: 3,274 units (Up 105.7%)
• MG: 3,254 units (Down 13.0%)
• Subaru: 2,656 units (Down 24.4%)
• Volkswagen: 2,139 units (Down 2.1%)
• Mercedes-Benz Cars: 1,835 units (Up 9.4%)

When we analyse the top-selling car brands in February, it can paint a confusing picture. Only four of the 15 brands on our list below are Chinese: BYD (6th), GWM (8th), Chery (9th), and MG (12th). However, six of the top-selling brands currently source vehicles from China for the Australian market.

Japanese and Korean brands have begun sourcing vehicles from China to reduce costs, in an effort to stay competitive with new Chinese brands. Hyundai produces the Elexio mid-size SUV through the Beijing Hyundai joint venture in China and delivered 105 Elexio units in February. Kia sources its EV5 electric SUV from a factory in Yantai, China, and delivered 280 units.

Tesla famously switched the production of its Australian-delivered models to China back in 2020. This move led to a significant drop in the vehicle’s purchase price, and it’s something that legacy brands like Ford, Mazda, Volvo, Mini, Lotus, and Cupra have replicated in recent months as well.

On the news, FCAI chief executive Tony Weber says that consumers are the winners of an increasingly competitive market, driven by the arrival of cut-price Chinese brands.

“After 28 years, Japan has been overtaken by China as the largest source of vehicles for the Australian market in a single month,” said Mr Weber. “The Australian market is one of the most open and competitive in the world. New brands can enter, establish dealer networks and compete on price, technology and design. Consumers are the beneficiaries of that competition.”

Delivery figures can fluctuate rapidly due to factors such as shipping arrangements and dealer stock levels. However, it’s likely that the February sales figures will paint a picture at year’s end when we update our list of top-selling car brands once again. With Chinese brands already forcing the hand of Japanese and Korean manufacturers, expect China to become the number one country of origin for new vehicles in the Australian market moving forward.