The Australian Automotive Dealer Association recently travelled to Beijing with a clear purpose: to ensure the voice of Australian new car dealers is heard as Chinese government and industry make decisions that will increasingly shape the Australian automotive market.
AADA was invited to participate in the World Intelligent Connected Vehicles Conference (WICV), hosted with the involvement of China’s Ministry of Industry and Information Technology (MIIT) and the Equipment Industry Development Center (EIDC).
The invitation provided an important opportunity for China’s automotive industry to hear first-hand about the unique characteristics of the Australian market, the opportunities it presents and the challenges facing Australian new car dealers.
This engagement comes at an important time. Chinese manufacturers are continuing to invest in Australia and are playing an increasingly significant role in the new car market. At the same time, MIIT and China’s Ministry of Commerce have recently published guidelines relating to the export of vehicles into international markets.
Being in Beijing gave AADA the opportunity to engage face-to-face with government, industry bodies and manufacturers involved in this transformation and reinforce a simple message: Australia presents significant opportunities for Chinese automotive manufacturers, but long-term success requires an understanding of the Australian market and strong, sustainable relationships with Australian dealers.
That was the central purpose of the visit.
Seeing the scale of China’s automotive industry first-hand
The delegation began its program with a visit to GWM’s manufacturing and research and development operations.
The visit provided an opportunity to see first-hand the scale of GWM’s manufacturing capability and learn more about the vehicles it plans to bring to the Australian market.
It culminated in an in-depth discussion with GWM executives about the company’s success in Australia, its plans for further investment and the importance of strong relationships with its Australian dealer network.
AADA emphasised the value of sustainable manufacturer-dealer relationships, including the role dealer councils can play in creating a structured forum for manufacturers and their dealers to communicate, address challenges and work together to grow their brands.
Putting Australian dealers into the international conversation
The following day, AADA participated in WICV, including an international automotive roundtable attended by representatives from markets around the world.
The roundtable provided an important opportunity to put the Australian perspective directly into an international discussion about the future of the automotive industry.
Australia is a unique and intensely competitive automotive market. Chinese manufacturers have achieved significant sales growth and Australian consumers have access to an extraordinary range of brands, technologies and vehicles.
AADA’s message was that dealers remain the local face of the automotive industry and are fundamental to the long-term success of brands operating in Australia.
Dealers invest in facilities, people, training and aftersales capability. They introduce customers to new brands and technologies, provide servicing and warranty support, and build the relationships and trust that help manufacturers establish a sustainable presence in the Australian market.
The broader WICV program also allowed AADA to hear directly from senior executives from major international manufacturers, including Mercedes-Benz and BMW, alongside leading Chinese OEMs.
Talking directly with brands looking to Australia
The delegation also met with SERES to discuss the manufacturer’s plans for the Australian market.
AADA reinforced the importance of dealers to any new automotive brand entering Australia. Successful market entry requires more than the right product. New entrants need a strong understanding of Australian consumers, regulation and market conditions, supported by sustainable relationships with the dealers representing their brands locally.
The delegation then held an in-depth meeting with the China Association of Automobile Manufacturers (CAAM).
The discussion covered developments in the Australian and Chinese automotive markets, the opportunities and challenges accompanying Australia’s rapid market transformation, and how AADA and CAAM can continue to strengthen their relationship.
A central theme was the long-term sustainability of the Australian market.
Australia welcomes competition, innovation and investment, but sustainable growth requires strong partnerships between manufacturers and their local dealer networks. Dealer councils are one practical example of how manufacturers and dealers can establish structured communication, address issues early and work together to build successful brands.
Strengthening government and industry relationships
Australian Ambassador to China Scott Dewar also hosted the AADA delegation for dinner with Australian and Chinese automotive stakeholders.
The discussion provided another opportunity to explain what makes Australia such a distinctive automotive market and consider how government, manufacturers, industry associations and dealers can work together to support the continued success of Chinese automotive brands in Australia.
These relationships are becoming increasingly important.
As Chinese OEMs continue to invest and grow in Australia, direct engagement between AADA and the government agencies, industry organisations and manufacturers shaping that investment helps ensure the Australian dealer perspective is understood.
Delivering the Australian dealer message at WICV
The visit culminated with AADA CEO James Voortman presenting at WICV.
His presentation reinforced the Australian dealer perspective and the importance of strong local partnerships as automotive manufacturers expand internationally.
Competitive products and sophisticated technologies are only part of what is required to succeed in Australia.
Dealers play an essential role in introducing consumers to new brands and increasingly sophisticated vehicles, building confidence in new technology and providing the servicing, warranty and customer support that continues throughout vehicle ownership.
For manufacturers seeking to establish a successful long-term presence in Australia, those local relationships matter.
Why engagement with China matters for Australian dealers
The Beijing visit was about much more than attending an international conference.
China’s government, automotive industry bodies and manufacturers are increasingly invested in the Australian market. Decisions being made in China about products, technology, investment, distribution and international expansion increasingly have consequences for Australian new car dealers.
AADA needs to be part of those conversations.
Building direct relationships with Chinese government agencies, industry associations and OEMs gives AADA the opportunity to explain the realities of operating in Australia, advocate for the interests of Australian dealers and promote strong, sustainable dealer-manufacturer partnerships.
Just as importantly, these relationships give AADA greater insight into the strategies, products, technologies and investment that will shape the next phase of Australia’s automotive market.
This engagement has continued following the delegation’s return to Australia, with AADA meeting with the Chinese Ambassador to Australia to share insights from discussions in Beijing and reinforce the importance of ensuring the Australian automotive market remains sustainable as Chinese manufacturers continue to expand their presence.
The growth of Chinese automotive brands demonstrates the significant opportunity Australia presents. AADA’s engagement in Beijing was about helping to ensure that growth is sustainable and that Australia’s franchised new car dealers remain central to its success.
That is why AADA was in Beijing, and why these relationships will become increasingly important for our members.