China has surpassed Japan as Australia’s top car exporter, driven by soaring EV demand and BYD’s rapid growth. Learn more now!
For the first time, China has overtaken Japan to become the largest supplier of cars to Australia. The shift is being powered by an explosive demand for electric vehicles (EVs) and a rapid expansion of Chinese brands such as BYD.
China’s Export Surge in Numbers
In April 2026 alone, almost 36,000 passenger cars built in China arrived at Australian ports, eclipsing the 29,000 vehicles imported from Japan. Over the first four months of the year, Chinese‑made cars topped 100,000 units – a 51% increase compared with the same period last year.
Electric Vehicles Drive the Momentum
More than 40,000 of the Chinese imports were pure‑electric models. The surge accelerated in March and April as Australian consumers turned to fuel‑efficient alternatives amid rising gasoline prices caused by Middle‑East tensions.
Data from the Australian Federal Chamber of Automotive Industries show that EVs and hybrids accounted for nearly half of all vehicle sales in May. BYD rose to become the second‑best‑selling brand, more than doubling its market share within a year, while Toyota still holds the top spot.
BYD’s Strategic Shipping Leap
BYD’s growth trajectory is expected to continue after the Chinese automaker launched its first dedicated car‑carrier vessel, the BYD Zhengzhou. The ship delivered close to 5,000 electric cars to Melbourne before heading to a port near Sydney, marking a new logistical milestone for Chinese auto exports.
Broader Impact on Australia’s Trade Balance
The rise in vehicle imports is part of a wider rebound in Australia’s overall import market. Import volumes recovered by 25% compared with March, helping push the total value of imported goods in April 2026 to a record AU$45.4 billion (approximately US$32.4 billion).
With Chinese manufacturers accelerating EV production and refining their supply chains, the Australian automotive landscape is set for a continued shift toward greener, more affordable mobility options.