New Chinese car brands such as BYD, MG, GWM, Chery, Jaecoo, Geely, Zeekr and XPeng are dramatically reshaping Australia’s new-car market. Are Chinese cars safe, cheaper to own, and worth buying compared with established brands?

China has overtaken Japan as Australia’s biggest source of new vehicles, highlighting how quickly Chinese car brands have moved from emerging challengers to major players in the local market.

Chinese-built vehicles accounted for 39.6 per cent of all new vehicles delivered in Australia in June 2026 when Tesla and Polestar sales are included. Australia’s best-selling vehicle in both May and June — the Tesla Model Y mid-size SUV — is built in China, while BYD finished just 243 sales behind Toyota in June and has surged to become Australia’s second-best-selling brand so far in 2026. Together, these results point to one of the most significant shifts in Australia’s automotive landscape in decades.

Indeed, more than 10 new Chinese brands have entered Australia in recent years. Offering everything from affordable city cars and family SUVs to plug-in hybrid utes and luxury EVs, these brands are now competing across the major segments of the car market. But are Chinese cars safe, reliable and worth buying compared with established brands such as Toyota, Mazda, Hyundai and Kia?

RACV Motoring Editor Terry Martin says the speed of change has been remarkable.

“Five years ago most buyers could name only one or two new Chinese car brands. Today, they’re competing directly with Toyota, Mazda, Kia, Hyundai and even Tesla, BMW and Mercedes-Benz for buyers’ attention and some are regularly amongst the top 10 brands for sales each month,” Martin says.

“What has changed is that Australian motorists are increasingly prioritising value, running costs, safety, comfort, technology and EV and PHEV powertrains. The brands delivering on those priorities are winning sales and market share, regardless of where the vehicle is built or the brand’s origin.”

More: Research and compare new cars, SUVs and utes on sale today in Australia