The Australian automotive landscape is on the cusp of a significant transformation, with industry experts predicting the departure of several established car brands. This forecast comes as the market faces unprecedented saturation, driven by an influx of new entrants, particularly from China.
Market Saturation:
- Numerous new brands, particularly from China, are entering the Australian market
- Deepal, Leapmotor, Xpeng, and Zeekr launched in 2024
- Geely, Jaecoo, and Foton set to enter in 2025
Historical Context:
- Recent years have seen the exit of brands like Infiniti, Chrysler, and Citroen
- Holden's departure in 2020 was a significant shock to the industry
Consumer Behavior:
- New car buyers are considering more options than ever before
- Average number of vehicles considered has risen to 2.9, up 13% year-over-year
- 49% of buyers consider three or more vehicles
Brand Importance:
- Brand remains the most crucial factor for 36% of buyers
- Country of origin is not a top consideration for most consumers
Industry Predictions:
- James Voortman, CEO of the Australian Automotive Dealer Association (AADA), warns of impending brand departures
- Concern focuses on established brands with large dealer networks and customer bases
Market Dynamics:
- Some brands, like BMW and Cupra, have seen increased interest post-purchase
- Others, including Alfa Romeo, Jaguar, and Renault, have struggled to maintain interest
As the Australian automotive market evolves, established brands face increasing pressure from new entrants. The industry is poised for a period of significant change, with potential brand exits reshaping the choices available to Australian consumers.
