Novel car brands tipped to accelerate Aussie market

Dozens more car brands – from Forthing to Skyworth – are expected to drive Australia’s automotive market forward over the coming year.

The number of vehicle brands is forecast to reach 67 in 2026, according to a report released by the Australian Automotive Dealer Association, and could top 75 by 2031.

But the organisation has questioned whether the local market will be able to support so many manufacturers, or if the surge will force some brands to pull out of the nation early.

The predictions come after a year of steady growth for hybrid, plug-in hybrid and electric vehicles in Australia, many from newer brands including BYD, Geely and Xpeng.

Data firm Blue Flag, which prepared the report for the Australian Automotive Dealer Association, found 39 brands were selling significant numbers of cars in the Australian market in 2021.

But while five of those companies had left Australia, such as Citroen and Chrysler, another 25 car brands would be on sale in the nation this year.

Fresh brands included Chinese manufacturers Forthing and Skyworth, BYD’s luxury offering Denza that was announced in December, and European brands Smart and Polestar.

Eight vehicle makers announced plans to launch Down Under during 2025, association chief executive James Voortman said, many of which were attracted by electric vehicle regulations.

“These new brands see Australia as having very attractive policy settings that are geared for the supply of electric vehicles where they can test their product in a western market with low up-front investment when compared to other western countries,” Mr Voortman said.

“We are currently seeing an over-flooding of the Australian market, with new brands coming thick and fast.”

Australia’s New Vehicle Efficiency Standard, introduced in January 2025, set emissions targets for automakers to incentivise the sale of fuel-efficient vehicles.

A fringe benefit tax exemption was also available for some electric car purchases, although the discount is under review.

The federal government should pursue action to strengthen and enforce franchising laws, Mr Voortman said, to ensure automotive dealers were not disadvantaged by the influx of vehicle brands.

“What is obvious is not all these new and even established brands will be able to compete long-term,” he said.

“The Albanese government must move to legislate on their election commitment to introduce an unfair trading practice regime to protect franchised new car dealers, which will give them confidence to invest in the transition to electric vehicles.”

More than 90 electric vehicle models and 59 plug-in electric vehicles were on sale in Australia during 2025, according to the Electric Vehicle Council, compared to 40 and 30 models respectively in 2023.