Albanese takes aim at Chinese car brands

Prime Minister Anthony Albanese has issued a warning to new car brands entering Australia, saying manufacturers must meet minimum standards on dealer treatment, servicing and parts supply or face tighter regulation.

Speaking at the Australian Automotive Dealer Association conference, Prime Minister Anthony Albanese said new manufacturers cannot rely on volume alone and must meet service and consumer protection standards if they want to operate in Australia.

“We want Australians to be able to choose from the broadest possible range of vehicles at the best possible price,” said Albanese.

The comments come amid a rapid influx of new brands, with 28 manufacturers launching locally in the past five years.

Most newcomers are Chinese, reshaping the Australian market at a pace not previously seen.

Albanese acknowledged a power imbalance between global manufacturers and local dealerships, with current franchising laws offering limited protection.

Dealers can be required to take on more vehicles than they can realistically sell and often carry the burden of warranty and servicing without sufficient support.

The Federal Government plans to introduce legislation this year to strengthen franchise protections, with Albanese saying consumer protection depends on dealer protection.

Last year, a handful of Chinese brands including BYD, Zeekr, XPeng, Smart and Leapmotor, were identified as failing to meet rules designed to prevent manufacturers from controlling servicing and repairs.

Australian Automotive Dealer Association chief executive James Voortman said the level of competition was becoming unsustainable.

“We have a lot more brands in this market eating away at the same pie,” said Voortman, warning that brands expanding without adequate servicing and parts capability risk undermining consumer confidence.

Voortman also warned that further brand exits are likely, either from legacy manufacturers unable to compete or Chinese brands affected by consolidation in their home market.

With franchising reforms expected this year, new car brands will face increased scrutiny over how they support dealers and customers, with the long-term viability of Chinese brands in Australia likely to hinge on servicing access, parts supply and compliance with tighter regulatory standards.

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au