Nissan warns more car brands to stop selling vehicles in Australia

The boss of Nissan Australia has claimed some car brands will soon pack up and leave the country because the market is overcrowded. 

Japanese, American and South Korean car makers dominate sales in the country, but a raft of new Chinese brands have either already launched or are gearing up to over the next few years. 

‘It’s not sustainable to have, within five years, 100 brands in the market,’ said managing director of Nissan Oceania, Andrew Humberstone, reported Car Expert.

He pointed to the US and UK markets ‘which have 40 and 42’ brands available ‘though depending on the data source some say it’s 53’ and how this was far fewer sellers despite a much larger population than Australia.

‘We’re at 69 or 70 already and 12 more coming in. They’re saying 100 brands in the country within the next five years, that’s a very, very complex marketplace.

‘The business case does not fly, simple. It doesn’t work.’

Mr Humberstone said Australians who buy new cars, particularly of non-established brands, could be at risk of being left in the lurch should the venture collapse. 

He said car parts might become no longer available for specific models and residual sales value could plummet if the brand no longer had a presence in the country.

Nissan, which is the 12th biggest-selling car brand in Australia, said it had no plans to exit the country 

Mr Humberstone said while new car brands might be at risk of exiting the country should they be unable to establish a foothold, there’s also the potential for well known car makers to leave. 

Las month French car manufacturer Citroën announced it would pull out of Australia after 100 years. 

‘Whilst we acknowledge and celebrate Citroen’s rich history in the Australian market, we must look to the future and consider the rapidly evolving, dynamic, and competitive nature of the industry and local market, alongside changing consumer demands,’ General Manager David Owen said. 

Mr Humberstone said Nissan had no intention to leave the country but was concerned about new car makers competing for sales.

‘We’re a very strong brand. But actually, if you look at where we are, in terms of our market share, it raises a number of questions because arguably, we should be in a better position.’

Chinese brand Great Wall Motors (pictured is its Tank 300 model) has been selling cars in the country since 2009 but it will soon be joined by a raft of new Chinese car makers

The XPeng G6 is among the range of EVs set to flood the Australian market

Nissan sold 39,376 vehicles in Australia in 2023, putting it as the 12th biggest-selling car brand. 

Among the Chinese brands now competing in Australia are Chery, BYD, MG, JAC and Xpeng, with even more to launch.

Swinburne University future urban mobility professor Hussein Dia said upcoming electric vehicle launches had the potential to change Australia’s automotive mix. 

EVs from little-known Chinese brands are set to compete with existing models from Tesla and Volvo

‘This is what we have been waiting and calling for – more variety across electric vehicle models and sizes and across a range of prices as well,’ he said. 

‘It will be good for consumers because it means lower prices, more competition and, from what I have seen, they are quality vehicles.’ 

Prof Dia said some may be budget options, but others would be luxury vehicles as many Chinese automakers had teamed with European brands to refine their products. 

‘They have been working on this for a long time in China,’ he told AAP. 

‘They launched joint ventures with international car makers and now they’re reaping the benefits.’ 

The EVs will also launch about the same time as the federal government’s New Vehicle Efficiency Standard, which will put a cap on emissions designed to force an increased supply of electric vehicles beyond demand levels so as to push down 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 into buying a fully-electric car as part of a Labor and Greens push to slash carbon emissions by 43 per cent 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 in 2024

Evie Charging chief executive Chris Mills said the growing competition was likely to significantly impact drivers, particularly those who had been driving an EV bargain.

‘In this next calendar year, into 2025, we’re going to be flooded with a bunch of new cars and new models,’ he said.

‘And I think it’s true when people say 50 per cent of people considering new cars are considering an EV for their next new car.’

Mr Mills said the company was expanding its public charging sites and planned to have 840 bays operating 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 increase in sales slowing down this year.

Climate Change and Energy Minister Chris Bowen’s New Vehicle Efficiency Standard, coming into effect in January 2025, will aim to slash average new car emissions by 60 per cent in just four years

US Cybersecurity and Infrastructure Security Agency executive director Brandon Wales has warned Australia to be wary about Chinese espionage, from the use of Chinese-built cranes to cars.

‘It should receive – and deserves – a higher degree of scrutiny,’ he told The Australian Financial Review.

Nationals senator Matt Canavan said China couldn’t be trusted with electric vehicles if Chinese companies like Huawei were banned from installing the 5G mobile network.

‘Given that we have banned China from building our 5G network, it seems strange to me that there’s not greater scrutiny on allowing China to control the vehicles that we drive,’ he told Daily Mail Australia.

‘There’s at least great risks in a 5G network as there would be in a vehicle that travels a hundred kilometres an hour.’ 

Pictured is BYD Americas executive Stella Li with a BYD Dolphin electric vehicle

ELECTRIC AUTO BRANDS TO CHARGE INTO AUSTRALIA

Zeekr: This Chinese brand, with a name that stands for ‘zero, evolving, electric and krypton’, has pledged to bring three electric cars to Australia by the end of 2025. The Zeekr X compact SUV will cost less than $60,000 and is expected in October.

Geely: The Chinese car giant might attract plenty of attention when it launches its Radar electric ute in Australia late this year. Called the Riddara R6 in other markets, the electric Toyota HiLux rival could feature a range of up to 571km.

XPeng: Three electric cars from this car maker are expected in Australia in the next three years, with the first model, the G6 SUV, due in October. Pricing for the vehicle, which promises to reach 100km/h speeds in 6.2 seconds, will be released in September.

Aion: The electric arm of automaker GAC, or the Guangzhou Automobile Group, has committed to launching a battery-powered hatchback, similar in size to a Toyota Corolla, in 2025.

Jaecoo: A luxury spin-off of the brand Chery, Jaecoo is expected to bring a mid-sized SUV called the J7 to Australia this year. The vehicle has styling similar to a Range Rover and will be available in two-wheel and four-wheel drive configurations.

Leapmotor: Expect to see two cars from this Chinese brand in Australia late in 2024. Its C10 mid-sized SUV and T03 small car, also known as a mini-car, will announce its arrival.

Skywell: A competitively priced SUV is expected from this brand in 2024. Known as the Skywell ET5 overseas, it will be sold as the EVA 5 locally and promises a range of up to 489km and a price of less than $50,000.