Australians bought more than 20,000 Chinese-made vehicles in August, putting four Chinese brands into the top 10 for the first time, while Tesla sales have slumped by more than a third.
BYD came in sixth for the month, overtaking Mitsubishi, after its sales nearly quadrupled compared with August 2024, while GWM, MG and Chery each outsold Isuzu Ute in the month to round out the top 10.
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Chinese companies altogether sold 8,000 more cars in August than they did in the same month in 2024 and have surged in dominance in 2025 so far, according to the Federal Chamber of Automotive Industries’ VFACTS data.
GWM has become the seventh-biggest company for the period January to August, with sales lifting to 34,000 from 28,000 in the same period in 2024. BYD has nearly tripled its sales to about 33,000.
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The market for cars has grown more diverse as Chinese carmakers have increasingly offered competitive prices and a greater range of electric vehicles, according to Tony Weber, chief executive of Federal Chamber of Automotive Industries.
“These companies are delivering vehicles that consumers want: modern, well-equipped and at competitive prices,” he said.
Tesla, meanwhile, has seen sales slip over the year, according to separate data collated by the Electric Vehicles Council.
Less than 18,000 Teslas were sold from January to August, whereas 28,000 were sold over the same period in 2024, mirroring declines recorded in Europe.
The biggest slump was in Tesla Model 3s, which has in previous years been Australia’s top-selling passenger car. Just 4,680 Model 3s have been sold in 2025 so far, where more than 12,000 had been sold in the same period in 2024.
The Tesla Model Y saw more sales in August 2025 than August 2024 but has seen sales slip over 2025 to date and faced a recall in late August over a software fault that could injure drivers.
Tesla sales have suffered a steep decline since February after its chief executive Elon Musk’s apparent fascist salute at a Trump inauguration rally, which saw Australian drivers sell their Teslas or add anti-Musk bumper stickers.
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The “Elon effect” has provided an opportunity for Chinese carmakers to take over the Australian market, according to Scott Dwyer, associate professor and research director at the University of Technology Sydney’s Institute for Sustainable Futures.
“Australians have certainly been put off by some of the news coming out of the US … [and] people are looking elsewhere,” Dwyer said.
“With the US tariffs as well, the Chinese [brands are] looking around saying ‘Where can we get a foothold, where can we sell and develop new markets?’”
Dwyer pointed to car shows such as Sydney’s Everything Electric in March, where attenders test drove cars from brands including GWM and MG.
“You can’t dismiss the word of mouth effect,” he said.
“The Chinese [manufacturers] are particularly aggressive in their go-to-market strategy [and] allowing consumers to get up close and personal with their vehicles, and that’s creating a lot of confidence.”
Mainstay brands continued to dominate sales and electric and hybrid sales accounted for less than 15,000 sales across the EVC and FCAI reports, compared to more than 90,000 non-electric sales.
Dwyer predicted EV uptake would rise as more options and lower prices continued to arrive in Australia.
“I definitely don’t think it’s a flash in the pan. This is something that’s here to stay.”
