Weekly Auto News
- Jul 6
- 13 min read
Updated: 1 day ago
24 August 2026
Changan Confirms Australian Launch, Bringing Mazda's EV Partner Out of the Shadows
Changan, one of China's biggest state-owned automotive groups, is preparing to launch under its own badge in Australia, with a local hiring spree across recent months pointing to a factory-backed operation covering both its mainstream Changan brand and its luxury Avatr arm. While the name is unfamiliar to most Australians, Changan is already deeply embedded in the local market: its long-running joint venture with Mazda builds the recently launched Mazda 6e and the incoming CX-6e, both of which ride on Changan-derived architecture closely related to its Deepal models.
That existing relationship is exactly why the arrival matters. Changan versions of shared vehicles are expected to be priced below their Mazda-badged equivalents, which puts a Japanese brand's product directly in competition with its own manufacturing partner on Australian showroom floors. Changan already sells here indirectly through Deepal, distributed by Inchcape (Subaru's local distributor), and its Avatr luxury brand, in which battery giant CATL and Huawei are key partners, will play a premium role similar to Zeekr within Geely or Denza within BYD. A right-hand-drive Avatr 07 has already been spotted testing in Melbourne.
No firm launch date has been confirmed, but the depth of local recruitment suggests the groundwork is well advanced, with most analysts pointing to a late-2026 or 2027 arrival. For a market that already hosts more than 25 Chinese-origin brands, Changan's entry, spanning mainstream, luxury and existing Mazda-badged product, adds yet another layer of complexity to an already crowded and fast-moving field. It's a reminder that the Chinese expansion into Australia is far from finished.
Geely Founder Steps Back as Chinese Giant Reshapes for Global Growth
Eric Li (Li Shufu), the billionaire founder of Geely, stepped down as chairman of the group's Hong Kong-listed flagship, Geely Automobile Holdings, effective 18 August, handing the role to long-serving executive An Conghui (Andy An). Li, appointed honorary chairman for life, remains chairman of the parent company, Zhejiang Geely Holding Group, and remains the controlling shareholder, so his influence over the sprawling empire endures. An has been with Geely since 1996 and takes the chair as the company pushes a long-term goal of generating two-thirds of its sales outside China.
The reshuffle isn't a distress signal. Geely reported record first-half revenue of RMB 173.6 billion (around $25.75 billion), up 15% year-on-year, with core net profit up 46%. Overseas deliveries more than doubled to 474,228 vehicles in the first half of 2026, and monthly exports passed 100,000 for the first time in June. Management framed the change as "de-familialisation", a deliberate move from a founder-driven startup to a mature business run by professional systems and teams, as part of its broader "One Geely" consolidation, which recently absorbed Zeekr and integrated Lynk & Co.
For Australia, the significance lies in what Geely has become. The group now owns or controls Geely, Zeekr, Volvo, Polestar, Lotus, Lynk & Co and holds a stake in Mercedes-Benz, and its Australian presence is expanding rapidly across several of those badges. A leadership transition built explicitly around overseas growth signals that markets like Australia, open, tariff-free and receptive to Chinese product, will only become more central to Geely's strategy in the years ahead.
Used EV Market Swings from Shortage to Oversupply in Weeks
In a striking reversal, the used electric vehicle market has flipped from red-hot demand to oversupply in the space of a couple of months. The AADA's latest Automotive Insights Report shows used EV sales fell 8.3% to 1,637 units, the largest drop of any fuel type, even as the broader used market saw listings climb 4.9% to 299,147. Just weeks earlier, used EV stock had been evaporating within 30 days as fuel-crisis buyers scrambled for electric alternatives. Now supply is building faster than demand can absorb it.
The swing reflects how quickly the fuel-crisis-driven surge has normalised. When petrol spiked above $2.50, and diesel cracked $3 earlier in the year, used EV interest exploded, with sales more than doubling month-on-month at the peak. With fuel prices now easing back and the excise relief having run its course, that panic-buying urgency has faded, leaving dealers holding more electric stock than the market currently wants. Retained values, already under pressure, are likely to soften further.
Overall, used car listings rose while sales dropped 3.6% to 206,804, and average days-to-sell hit a new low of 42.7, signalling motivated sellers and bargain-hunting buyers. Hybrid sales edged up 0.6% while petrol and diesel both declined. For anyone tracking residual values, whether for finance, insurance or fleet remarketing, the used EV story is a cautionary one: demand driven by an external shock can reverse just as fast as it appeared, and a segment can go from undersupplied to oversupplied in a single quarter.
Analysts Declare Australia a "Showcase" for the Japan-to-China Power Shift
Fresh market analysis this week framed Australia as a global showcase for the automotive industry's transition from Japanese to Chinese leadership. Through the first seven months of 2026, total registrations rose just 1.6% to 740,156 units, confirming a mature market with limited underlying volume growth. But beneath that flat headline, the composition is transforming at speed: electric vehicles now represent 13.3% of the market year-to-date, with EV sales up an extraordinary 77.5% on the same period last year.
The brand story is even more dramatic. BYD has overtaken Tesla as Australia's EV market leader, with sales up 112.6% to a 33.9% share of the electric segment. Tesla, despite losing the top spot, still grew 38.9%, while Kia ranks third after a 29% rise. The analysis notes that a market once dominated by Tesla and supported by established Japanese and Korean brands is being reshaped by broader model availability, aggressive pricing from Chinese manufacturers, and renewed demand for the Tesla Model Y.
The "showcase" framing captures something real. Australia's open market, absence of local manufacturing to protect, and lack of tariffs on Chinese vehicles have made it a proving ground where the global shift in automotive power is playing out faster and more visibly than almost anywhere else. For businesses that depend on understanding the local fleet, the message is that the Japan-to-China transition isn't a distant trend; it's happening in Australian driveways right now.
Chery Adds New Stockman Variant as Chinese Ute Assault Intensifies
Chery has confirmed a new variant for its upcoming Stockman diesel plug-in hybrid ute, broadening the range of Australia's first diesel PHEV ute ahead of its launch. The Stockman, named through a public competition that drew more than 20,000 entries, pairs a 2.5-litre turbo-diesel with an electric motor for a combined 350kW and 800Nm, and is positioned squarely against the BYD Shark 6, Ford Ranger PHEV and GWM Cannon Alpha PHEV.
The expansion signals how seriously Chinese brands are taking the Australian ute segment, traditionally the stronghold of the Ford Ranger, Toyota HiLux and Isuzu D-Max. Chery has already engaged Australian engineering firm Premcar, known for its work on Nissan Patrols and Navaras, to tune the Stockman's ride and handling for local conditions, a notable investment for a brand that previously argued its vehicles didn't need Australia-specific tuning. It's part of a broader pattern: GWM is launching its big new 3.0-litre diesel Cannon Alpha in September, and BYD continues to expand its Shark 6 range.
The timing matters because the ute market is under pressure. The 4x4 dual-cab segment has been sliding through 2026 as fuel costs and electrified alternatives reshape buyer behaviour, yet it still accounts for roughly one in five new vehicles sold. Chinese brands are betting that plug-in hybrid utes, offering low running costs without sacrificing towing or payload, can win over traditional diesel buyers. Every new variant and nameplate entering the segment adds to the data complexity faced by insurers, financiers and fleet operators, who need to identify and value an ever-wider range of ute configurations.
June VFACTS: Australia Smashes All-Time Monthly Sales Record with 140,058 Deliveries
June 2026 has rewritten the record books. A combined 140,058 new vehicles were delivered, the highest monthly total in Australian automotive history and the first time the market has cleared 140,000 in a single month. The previous record of 134,171, set in June 2017, has been comfortably surpassed. Total sales were up 9.9% year-on-year, boosted by the EOFY rush, fuel price anxiety and an unprecedented wave of competitive product.
FCAI CEO Tony Weber didn't hedge. "The Australian automotive market has shifted on its axis during the first months of 2026. This year is likely to represent a significant turning point for the Australian automotive industry." Weber pointed to global uncertainty, Middle East conflict and fuel price volatility as factors that have "sharpened consumer interest in vehicles that reduce exposure to fuel prices," but acknowledged that part of the EV growth "would appear to be a permanent structural shift."
For the half year, 631,581 new vehicles have been sold, up 1.2% on the same period in 2025 and the second-highest H1 figure on record. Petrol sales fell 29% in June to 34,717 units. Diesel dropped 18.4% to 31,789. Hybrids rose 35% to 20,741. Plug-in hybrids surged 158% to 16,068. The composition of the Australian fleet is transforming month by month.
BYD Falls Just 243 Sales Short of Toppling Toyota
The closest any brand has come to knocking Toyota off the top of the Australian sales charts since the Holden era. BYD delivered a record 18,881 vehicles in June, up 131.5% year-on-year. Toyota held on with 19,124, down 5.4%. The gap: 243 vehicles out of 140,058. A margin of 0.17%.
BYD was the number one brand in Victoria, Queensland, Tasmania and the ACT. Toyota held its lead nationally by defending its volume in New South Wales, Western Australia and South Australia. BYD's June result was helped by the arrival of the BYD-owned cargo ship Zhengzhou, which docked in Melbourne carrying close to 5,000 vehicles, most sold before the ship left Shanghai. BYD itself acknowledged the result is "a feat unlikely to be repeated for some time."
Tesla Model Y Smashes Individual Model Record: 8,072 Sales in a Single Month
The Tesla Model Y delivered 8,072 units in June, topping the overall sales charts for the second consecutive month and setting a new record for any individual model in a single month. To put that in context: the previous monthly records were Ford Ranger at 7,767 (December 2023), Toyota HiLux at 7,582 (June 2022) and Toyota RAV4 at 6,712 (August 2024). The Model Y beat them all.
The Model Y finished more than 2,000 units clear of the second-placed Ford Ranger (5,999) and the third-placed Toyota HiLux (5,175). Tesla as a brand recorded 8,670 total sales for the month (up 88.9%), catapulting it to fourth in the overall brand rankings, ahead of both Kia and Hyundai, despite selling only two models. The Model Y accounted for 93% of Tesla's Australian volume.
Hyundai CEO Accuses BYD of "Dumping Cars" in Stunning Public Attack
Hyundai Australia CEO and President Don Romano, who also serves as CEO of Hyundai's Asia Pacific Regional Headquarters, launched an extraordinary public attack on BYD this week. Asked whether he was surprised at how quickly BYD had risen up the sales charts, Romano didn't hold back: "I think if I were to lose money and dump cars, and if my stock price was down 40 per cent, I could do the same."
Romano went further, questioning the sustainability of BYD's growth model. "I think there's a big difference between growth at any cost and growth organically, so I'm not surprised. I would be if it was sustainable. We're celebrating our 40th anniversary and we're planning another 40 years, so if they're around in 40 years then hats off to them." The comments reference BYD's falling sales and stock price in China, where the aggressive pricing war BYD instigated has started hurting its own domestic results.
BYD Australia declined to comment. The numbers tell their own story: both brands have sold approximately the same volume year-to-date (BYD around 33,000, Hyundai around 32,000 through May), but BYD is growing at 120% while Hyundai is up a more modest 5%. Whether BYD is genuinely below cost in Australia or simply operating on thinner margins with higher volume ambitions is a question that will define the competitive dynamics of the next 12 months.
China Now Supplies More Than One in Three New Cars Sold in Australia
June VFACTS data confirmed China as Australia's dominant vehicle source, accounting for 46,592 sales or 35.5% of the market. Japan followed at 27,098 (20.7%), Thailand at 23,297 (17.8%), Korea at 14,863 (11.3%) and Germany at 5,731 (4.4%). Chinese-sourced vehicles include not only Chinese brands but also Tesla (built in Shanghai) and Polestar.
The speed of this shift is remarkable. In January 2026, Chinese-sourced vehicles first overtook Japan in a single month. By June, the gap has blown out to nearly 20,000 units per month. For the first half of 2026, China has supplied more vehicles to Australia than any other country by a substantial margin, a structural change that looks permanent.
The newer Chinese brands are scaling fast from small bases. Geely grew 326.6% month-on-month in June. Omoda Jaecoo climbed from 380 sales in June 2025 to 2,541. Zeekr went from 111 to 1,954. Denza, entirely new to the market, delivered 790 vehicles. Four Chinese brands (BYD, GWM, MG, Chery) finished in the overall top 10 for the month, with three more knocking on the door. The brand fragmentation that AADA has been warning about is now playing out in the data.
29 June 2026
Fuel Excise Cut Extended One Month, But Halved from Tomorrow
In a late move that caught most of the industry off guard, Prime Minister Albanese announced the fuel excise relief will be extended for one more month beyond its 30 June expiry, but at half the current rate.
From 1 July, the discount drops from 32 cents per litre to 16 cents per litre and runs until 2 August. After that, the full excise rate of 52.6 cents per litre returns unless further extensions are announced. The Heavy Vehicle Road User Charge will also be reduced by 16 cents for the same period.
The step-down approach means motorists will see prices rise at the pump from tomorrow, but not by as much as originally expected. Unleaded petrol, which has been averaging around $1.65 per litre in June, is expected to push toward $1.80. Diesel, averaging about $1.97, could move above $2.10. The government has costed the one-month extension at approximately $400 million. The ACCC continues to monitor pricing to ensure the remaining discount is passed through.
The announcement came in the same week as a US-Iran memorandum of understanding was signed, raising hopes the Strait of Hormuz could eventually reopen to commercial shipping. Oil benchmarks have already responded, with gasoil (the key diesel indicator) down roughly 17% from 2026 highs. But the peace deal remains fragile, with both sides trading conflicting statements about the timeline for reopening the strait.
BYD Atto 2 PHEV Approved for Sale: Set to Become Australia's Cheapest Plug-in Hybrid
A plug-in hybrid variant of the BYD Atto 2 small SUV has been approved for sale in Australia by the federal government, setting the stage for what could become the country's cheapest PHEV. Pricing hasn't been confirmed yet, but is expected to sit below the $31,990 (before on-road costs) starting price of the existing electric Atto 2, making it cheaper than the BYD Sealion 5 ($33,990) and Chery Tiggo 7 Super Hybrid ($39,990 drive-away).
The Atto 2 DM-i (as it's known in overseas markets) pairs a 1.5-litre naturally aspirated petrol engine with an electric motor. Two battery options are available internationally: a 7.8kWh pack offering 40km of electric-only range, and an 18.3kWh pack delivering 89km. In the UK, the larger battery variant claims a total driving range of nearly 1,000km. Combined output of the higher-spec version is 156kW/300 Nm. BYD Australia hasn't officially confirmed the launch, but government approval for a vehicle that rarely doesn't make it to showrooms is a strong signal.
If it arrives at or below $30,000, the Atto 2 PHEV will directly challenge segment leaders like the Chery Tiggo 4 and Hyundai Kona, which rely on petrol and conventional hybrid powertrains. For BYD, it's another entry point into the Australian market and more NVES credits on a vehicle that's already proven its popularity in electric form.
Toyota Drops Major Hint on Plug-in Hybrid HiLux
Toyota appears to have opened the door to a plug-in hybrid HiLux, with reports firming this week that the RAV4 PHEV GR Sport powertrain could form the basis for a PHEV version of Australia's most iconic ute. The RAV4 PHEV uses a 2.5-litre petrol engine with two electric motors delivering a combined 227kW and all-wheel drive grip, a powertrain that could, in theory, be adapted for the HiLux platform.
Toyota has previously been coy about a hybrid HiLux. When asked about it earlier this year, Toyota Australia VP of Sales John Pappas said the brand would "always make sure it's fit for purpose for that customer type" before committing to a powertrain. The company's stated next step for HiLux electrification has been hydrogen fuel cell technology, with an FCEV pilot program flagged for 2027. But the runaway success of the BYD Shark 6 (which has outsold the HiLux in some months this year), combined with the Ford Ranger PHEV's permanent repricing to $59,000, has changed the competitive calculus.
A mini HiLux, based on the Corolla Cross platform, is also reportedly targeting H1 2027 for launch with PHEV capability. If Toyota does bring a plug-in hybrid to the full-size HiLux, it would complete a powertrain lineup spanning diesel, mild-hybrid diesel, battery-electric and PHEV, giving the brand the broadest ute range in the market.
New-Car Quality Posts Biggest Improvement in 29 Years
JD Power's 2026 Initial Quality Study, based on 78,514 survey responses from new-vehicle owners after 90 days of ownership, has recorded the biggest year-on-year quality improvement since 1997. Reported problems fell from 192 per 100 vehicles (PP100) in 2025 to 175 PP100 in 2026, and the fourth-best result in the survey's 40-year history.
Improvements were recorded across nine of the 10 categories measured, with the sole exception being multimedia and connectivity systems, where "connectivity issues continue to strain customer experience." JD Power Senior Director Frank Hanley noted that the biggest quality gains come from simplicity: intuitive controls, less-intrusive driver assistance systems, and software that works the way owners expect. When technology becomes too complicated, problems rise.
For the Australian market specifically, the findings carry particular weight given the influx of Chinese brands. One of the persistent consumer concerns about new entrants has been build quality and long-term reliability. Data showing a broad industry improvement in initial quality provides a useful baseline, though the JD Power study is US-focused and doesn't break out individual Chinese brands in the Australian context. Local quality tracking remains a gap in the market.
EOFY Closes on Most Competitive June in Australian Automotive History
The 2025-26 financial year ends tomorrow, and June 2026 is shaping up to be one of the highest-volume sales months in recent memory. With 67 brands competing in a market that's essentially flat year-to-date (up just 0.1% through May), the level of discounting, bundled offers and finance deals has been extraordinary. Electrified vehicles are widely expected to push past 50% of June sales for the first time.
The deals tell the story. BYD is offering 1.88% comparison rate finance or $3,000 cashback. Geely is at 0.88% over 36 months. Toyota is bundling $7,500 deposit bonuses with the bZ4X. Ford has permanently cut the Ranger PHEV to $59,000 drive-away. Hyundai has permanently slashed $8,000 off its EV range. BMW is matching GST-equivalent savings across its X range. Nissan is pushing the Ariya at $53,990 drive-away with a free home charger. Subaru has cut EV prices by up to $4,000.
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