New data released shows that Australia will have 67 brands selling vehicles in Australia in 2026 and 75 brands in 2031 making it one of the most competitive markets in the world.
The Australian Automotive Dealer Association (AADA) commissioned respected automotive data and modelling agency Blue Flag to detail the number of brands projected to come to Australia so that franchised new car dealers fully understand the market wave that is coming their way.
“We are currently seeing an overflooding of the Australian market with new brands coming thick and fast,” said AADA CEO James Voortman.
The new data details that in 2026 there will be a record number of brands with 8 new entrants stating their intentions to set up in Australia from last year and an increase of 28 new brands by the year 2031, a 92 per cent rise in the number of brands in Australia in 10 years from 2021.
“These new brands see Australia as having very attractive policy settings that are geared for the supply of electric vehicles where they can test their product in a western market with low upfront investment when compared to other western countries.”
“What is obvious is not all these new, and even established brands will be able to compete long term. Australian drivers will always be attracted to value-based products that offer a quality experience but more so, a quality after sales experience with reliable and timely servicing and repair work. Brands that cannot compete on that level will struggle.”
However, in the race to supply vehicles to Australia, the AADA is asking the Government to move at pace to protect Australian franchised new car dealers with their election commitment before we start to see market consolidation and departures.
“After recent the recent Federal Court decision involving Australian new car dealers and Mercedes-Benz AG, we have seen that franchising laws will not protect against franchisors using their power imbalances to increase their profits at the expense of Australian businesses.”
“The Albanese Government must move to legislate on their election commitment to introduce an Unfair Trading Practices regime to protect franchised new car dealers which will give them confidence to invest in the transition to electric vehicles.”