It’s happened. China has just become the top car supplier for buyers in Australia

Japan surrendered the crown last month and it cannot be long before the single indicator month becomes a full-time trend.

The China-built total for February was 22,362 vehicles, according to official totals from Canberra, as Japan managed 21,671.

It’s the first time since 1998 that Japan has been trumped by another country and is another reflection of the downturn in sales by ‘legacy brands’ in Australia.

But there is something else at work, as a growing number of those same legacy brands turn to China as a source for their electric cars.

Kia gets EVs from China, so does Mazda, and so does Volvo. There are others, too.

It’s a seismic shift, not just because Chinese-built cars are cheaper, but also because the EV factories in China have been built from scratch – not converted from combustion powerhouses – to produce what are being called ’new energy vehicles’. It makes them both easier and cheaper to produce, with plenty of production capacity and a growing number of mutual-benefit tie-ups with companies such as Geely.

The latest new-car sales result has Thailand in third place in February, with 19,393, followed by South Korea on 11, 913.

But, and it’s a considerable ‘but’, the February results could quickly turn back in favour of Japan as a growing number of new models are landed.

Toyota is the most obvious source, as it is still ramping-up supplies of its top selling HiLux and an all-new RAV4 family fighter is expected by the end of March.

Nissan, too, is improving is showroom results with both Subaru and Mitsubishi pushing hard against the newcomers from China.

Toyota Australia never gives oxygen to its rivals, but is happy to explain a relative downturn for the brand in Febuary.

“Our February sales aligned with our plans for 2026,” said the company’s new vice-president of sales and marketing, John Pappas, using predictable language to excuse a sub-par result.

“We anticipated a steady start to the year as we transitioned to the All-New RAV4, and it’s positive to see most of our current generation RAV4 vehicles have been sold and customer demand remains strong across the Toyota range.”

In Toyota-speak, ’steady’ means anything which is not best in class or reflects a backwards trend.

There was an overall fall in February, with a 4.5 per cent decline in the overall showroom results, to 90,712, compared with February in 2025.