China Overtakes Japan as Australia's Top Source of New Vehicles in February 2026

The Australian automotive landscape has undergone a historic shift, with China overtaking Japan as the country's largest source of new vehicles for a single month, according to data released today by the Federal Chamber of Automotive Industries (FCAI) for February 2026.

During the month, 22,362 vehicles manufactured in China were delivered to Australian customers, representing a massive 45.1 per cent year-on-year increase, now making up 24.6 per cent of our new car market.

In contrast, vehicles sourced from Japan fell by 31.3 per cent to 21,671 units, ending a 28-year reign at the top of the import charts.

The overall new vehicle market experienced a slight contraction, with 90,712 total sales representing a 4.5 per cent decrease compared to February last year.

This shifting dynamic is largely driven by a wave of new automotive brands entering the local market.

Established Chinese players like GWM and MG have been joined by a slew of fresh entrants, with nine of the ten newest brands to hit our shores hailing from China.

Looking at the FCAI data, recent arrivals are already posting significant volume.

BYD - a more established Chinese brand by now than most - recorded 5323 sales, an increase of 62.2 per cent over last February.

Chery have also seen serious growth with 3938 sales for the month, a 93.2 per cent increase from February 2025.

Geely recorded 893 sales, Omoda Jaecoo saw 815 sales, and premium EV brand Zeekr achieved 654 sales.

Other emerging nameplates such as Denza, Deepal, and Leapmotor also contributed to the tally with 309, 71, and 46 sales respectively.

A deeper dive into specific segments illustrates exactly where traditional Japanese stalwarts are losing ground to these challengers.

In the fiercely competitive Small SUV segment under $45,000, the Chery Tiggo 4 Pro was a standout performer, surging 116.8 per cent to record 2,315 sales.

The GWM Haval Jolion also performed strongly, capturing 1,804 sales which translates to a 38.6 per cent increase.

Meanwhile, legacy Japanese rivals in the exact same category suffered declines.

The Mitsubishi ASX plummeted by 88.3 per cent to just 133 units, while the Toyota Corolla Cross fell 17.4 per cent to 883 deliveries.

A similar story unfolded in the crucial Medium SUV under $65,000 bracket.

BYD's expanding line-up made an impact, with the Sealion 7 securing 1,327 sales and the Sealion 6 adding 621 units.

The GWM Haval H6 maintained steady volume with 1,142 sales, up 4.4 per cent year-on-year.

Conversely, the segment's traditional dominant force, the Toyota RAV4, saw its monthly volume crash by 83.6 per cent from 4,405 sales down to just 723.

However, as CarSauce reported last month, this dramatic RAV4 slide is not necessarily a loss to Chinese rivals, but rather due to dwindling stock of the outgoing model ahead of the highly anticipated new-generation RAV4 arriving in late March.

The Nissan X-Trail also absorbed a heavy hit, falling 60.8 per cent to 585 sales.

Even the heavily entrenched 4X4 Ute market is showing signs of disruption.

While the Toyota HiLux 4X4 remained the volume leader with 3,040 sales, this represented a 1.9 per cent drop.

The Mazda BT-50 4X4 experienced a much sharper 30.9 per cent decline, logging 790 sales for the month.

Capitalising on this shift were Chinese utility vehicles, such as the BYD Shark 6 which captured 1,058 sales.

The GWM Cannon and Cannon Alpha 4X4 range also saw exceptional growth, skyrocketing 225.0 per cent to reach 1,001 deliveries.

Ultimately, the beneficiaries of this evolving landscape are Australian consumers.

With 11.8 per cent of total sales now being battery electric vehicles, the influx of technology-driven, competitively priced Chinese models is undeniably reshaping the local industry.

As these new brands continue to establish their dealer networks, the pressure on legacy automakers to adapt will only intensify.