On the second day of Christmas…
carsales gave to me...two plot twists that rewrote Australia’s car market in 20252025 wasn’t just another year for Aussie car buyers – it was a turning point. Two major developments reshaped the automotive landscape, influencing what we drive, how much we pay, and even the future of our roads.
Chinese brands surge into the Top 10
A market shake-up that few could’ve predicted just five years ago.
BYD, GWM, MG, and Chery stormed into Australia’s Top 10 brands in 2025, collectively claiming nearly 20 per cent of new car sales.
As of November 2025, BYD alone posted a 147 per cent year-on-year increase, driven by affordable electric vehicles (EV) like the Dolphin and Seal.
These brands aren’t just competing on price – they’re delivering tech-rich vehicles with strong warranties and safety credentials.
Their rapid rise is pushing established players to sharpen their game, improve value, and accelerate electrification strategies.
For buyers, this means more choice, better features, and competitive pricing across the board.
Australia’s New Vehicle Efficiency Standard (NVES) arrives
For decades, Australia has lagged behind global emissions standards.
That changed in 2025 when the NVES came into effect, setting mandatory CO2 targets for new passenger vehicles.
Carmakers must now meet strict efficiency standards or face hefty penalties for exceeding them.
This policy is forcing brands to rethink their line-ups with high-emission utes and large SUVs – long-time Aussie favourites – under pressure, while hybrids, plug-in hybrids (PHEV), and EVs are surging.
Expect more electrified options and fewer thirsty eight-cylinder vehicles or diesel-powered machines in showrooms.
It’s a seismic shift that aligns Australia with markets like Europe and the US, and it’s already influencing pricing and availability.
Some popular models may become harder to find or more expensive, while incentives for low-emission vehicles are growing.
If you’ve been considering an EV or hybrid, 2026 could be the year to make the switch.
With NVES reshaping supply and Chinese brands rewriting the competitive landscape, 2026 promises even more disruption. Will traditional giants fight back? And will EV adoption hit new highs?
Which twist surprised you most? Share your thoughts on Facebook @carsalescomau
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