The boss of Nissan Australia has claimed some car brands will soon pack up and leave the country because the market is saturated.
Japanese, American and South Korean automakers dominate sales in the country, but a number of new Chinese brands have already launched or are preparing to do so in the coming years.
“It is not sustainable to have, in five years, 100 brands in the market,” said Nissan Oceania general director Andrew Humberstone. car expert.
He pointed to the US and UK markets, “which have 40 and 42” brands available, “although depending on the data source, some say it’s 53” and that these were far fewer sellers despite a population much larger than that of Australia.
‘There are already 69 or 70 of us and 12 more are yet to arrive. They say that 100 brands in the country within the next five years, it is a very, very complex market.
‘The business case doesn’t work, simple. Not working.’
Humberstone said Australians buying new cars, particularly from unestablished brands, could risk being left in the lurch if the company collapsed.
He said auto parts could become unavailable for specific models and the residual value of sales could plummet if the brand no longer had a presence in the country.
Nissan Oceania boss Andrew Humberstone said there were likely to be 100 car brands in Australia within five years and that was almost double what the US and UK had.
Nissan, which is the 12th best-selling car brand in Australia, said it had no plans to leave the country.
Humberstone said that while new car brands could be at risk of leaving the country if they fail to establish themselves, there is also the possibility of well-known car manufacturers leaving.
Last month, French carmaker Citroën announced it would withdraw from Australia after 100 years.
“While we recognize and celebrate Citroën’s rich history in the Australian market, we must look to the future and consider the competitive, dynamic and rapidly evolving nature of the local industry and market, along with changing consumer demands,” said CEO David Owen.
Humberstone said Nissan had no intention of leaving the country but was concerned about new car makers competing for sales.
‘We are a very strong brand. But actually, if you look at where we are, in terms of our market share, a number of questions arise because, arguably, we should be in a better position.”
Chinese brand Great Wall Motors (pictured, its Tank 300 model) has been selling cars in the country since 2009, but will soon be joined by a host of new Chinese automakers.
The XPeng G6 is among the range of electric vehicles that will flood the Australian market
Nissan sold 39,376 vehicles in Australia in 2023, making it the 12th best-selling car brand.
Chinese brands now competing in Australia include Chery, BYD, MG, JAC and Xpeng, with more still to be launched.
Hussein Dia, future professor of urban mobility at Swinburne University, said upcoming electric vehicle launches had the potential to change Australia’s automotive mix.
Electric vehicles from little-known Chinese brands will compete with existing models from Tesla and Volvo
“This is what we have been waiting and asking for: more variety in models and sizes of electric vehicles and also in a range of prices,” he said.
“It will be good for consumers because it means lower prices, more competition and, from what I’ve seen, they are quality vehicles.”
Professor Dia said some may be budget options, but others would be luxury vehicles, as many Chinese automakers have partnered with European brands to refine their products.
“They’ve been working on this for a long time in China,” he told AAP.
“They launched joint ventures with international automakers and are now reaping the benefits.”
Electric vehicles will also be launched around the same time as the federal government’s New Vehicle Efficiency Standard, which will put a cap on emissions designed to force an increase in the supply of electric vehicles beyond demand levels to reduce their prices.
Car makers who sell too many utes and SUVs face hefty fines that could add more than $13,000 to the price of diesel and petrol vehicles.
That could force more motorists to buy a fully electric car as part of a Labor and Green initiative to reduce carbon emissions by 43 percent by 2030.
The Climate Council wants Australia to go further and ban sales of new petrol and diesel cars by 2035, which would include hybrid vehicles because only “zero emission” vehicles would be allowed.
The Electric Vehicle Council estimates Australian motorists will buy more than 100,000 new battery-powered cars by 2024
Evie Charging chief executive Chris Mills said the increasing competition is likely to significantly impact drivers, particularly those who have been driving electric vehicles on sale.
“In the next calendar year, until 2025, we will be inundated with a lot of new cars and models,” he said.
“And I think it’s true when people say that 50 percent of people who are considering buying new cars are considering an electric vehicle for their next new car.”
Mills said the company was expanding its public charging sites and planned to have 840 stations operational by Christmas.
The Electric Vehicle Council estimates Australian motorists will buy more than 100,000 new battery-powered cars in 2024, up from 87,000 in 2023, despite the pace of sales growth slowing this year.
Minister for Climate Change and Energy Chris Bowen’s new vehicle efficiency standard, which comes into force in January 2025, will aim to reduce average emissions from new cars by 60 per cent in just four years.
US Cybersecurity and Infrastructure Security Agency CEO Brandon Wales has warned Australia to be wary of Chinese espionage, from the use of Chinese-built cranes to cars.
“It should receive – and deserves – a greater degree of scrutiny,” he told The Australian Financial Review.
National Senator Matt Canavan said China could not be trusted with electric vehicles if Chinese companies such as Huawei were banned from installing the 5G mobile network.
“Given we’ve banned China from building our 5G network, I find it strange that there isn’t greater scrutiny to allow China to control the vehicles we drive,” he told Daily Mail Australia.
“In a 5G network there are at least as big risks as there would be in a vehicle traveling at one hundred kilometers per hour.”
In the photo, Stella Li, BYD Americas executive, with a BYD Dolphin electric vehicle.
ELECTRIC CAR BRANDS WILL CHARGE AUSTRALIA
Zeekr: This Chinese brand, whose name means ‘zero, evolving, electric and krypton’, has committed to bringing three electric cars to Australia by the end of 2025. The Zeekr X compact SUV will cost less than $60,000 and is expected to be available in October . .
Geely: The Chinese car giant could attract a lot of attention when it launches its Radar electric vehicle in Australia later this year. Called Riddara R6 in other markets, the electric rival to the Toyota HiLux could offer a range of up to 571 km.
XPeng: Three electric cars are expected from this manufacturer in Australia over the next three years, with the first model, the G6 SUV, due out in October. The price of the vehicle, which promises to reach speeds of 100 km/h in 6.2 seconds, will be announced in September.
Aion: The electric arm of automaker GAC, or Guangzhou Automobile Group, has committed to launching a battery-powered hatchback, similar in size to a Toyota Corolla, in 2025.
Jaecoo: Jaecoo, a luxury spin-off of the Chery brand, is expected to bring a mid-size SUV called the J7 to Australia this year. The vehicle has similar styling to the Range Rover and will be available in two- and four-wheel drive configurations.
Jump Engine: Expect to see two cars from this Chinese brand in Australia in late 2024. Its C10 midsize SUV and T03 small car, also known as a minicar, will herald their arrival.
Sky well: A competitively priced SUV from this brand is expected in 2024. Known as Skywell ET5 overseas, it will be sold as EVA 5 locally and promises a range of up to 300 miles and a price under $50,000.