Japanese car brands are losing ground to the Chinese marques like BYD, MG, and Chery

China has become a dominate force in the new-car market with brands like BYD, Chery, MG, and GWM solidifying their presence in Australia this year.

But, with a market cap of around 1.1-1.2 million new vehicles sold per year, the growth of Chinese brands means they are stealing share away from existing players.

And it is becoming clear exactly who is losing out: Japanese brands.

For the first four months of 2025, this figure was 56,510 sales, but in 2026, that number has shot up 40 per cent to 93,539.

Looking at the Japanese brands, 2025’s first four-month total sales was 186,507 units, whereas this year it sits at 150,797 – a decrease of 20 per cent.

Looking at the raw numbers, China’s share has jumped 37,029 units, whereas Japan’s total is down 35,710 – making it obvious where Chinese brands are succeeding in swaying customers.

Now, not all Chinese brands are finding success in 2026, but BYD (+110.8%), GWM (+26.8%), Chery (+92.4%), Geely (+842.8%), Zeekr (+955%), and Leapmotor (+116.5%) have all found sales growth so far this year.

There are also a number of new entrants that have launched in the last 12 months like Denza, Omoda Jaecoo, Deepal, Foton, and Farizon that are building momentum in Australia.

However, LDV (-9.4%), MG (-1.6%), and JAC (-44.8%) are the outlier brands from China that have seen sales slip this year.

On the Japanese side, all major brands – barring Isuzu Ute – are selling at a slower pace than last year.

The brand with the largest percentage sales slide is Nissan, which is down 32.2 per cent to 9737 units to the end of April, with each its model lines less popular than last year.

However, Nissan has reshuffled its line-up with the axing of the Juke, Leaf, and Pathfinder this year, while its Qashqai, X-Trail, and Navara were all recently updated.

Mitsubishi, meanwhile, has shed 25.5 per cent of its share this year largely due to the discontinuation of the Eclipse Cross and Pajero Sport, and its volume-selling ASX small SUV moving to a more sophisticated (and more expensive) European-sourced model.

Suzuki is down 23.4 per cent, again with all its model lines in the red, but the refreshed Jimny and Vitara are expected to help spark more interest in the brand.

Toyota has sold 17,502 units less this year for a 22.7 per cent drop, but its top-selling RAV4 and HiLux model were launched in new-generation forms in the last few months.

Subaru sales are down 19.3 per cent, while Lexus and Mazda have shed 13.8 and 13.1 per cent of sales so far this year.

Honda has seen the lowest drop, with 2026’s tally so far just 1 per cent – or 54 units – shy of last year’s figure.

Of all the Japanese brands, only Isuzu Ute has broken new ground this year, increasing its share by 6.7 per cent to 13,285 due to increased sales of the D-Max 4x2 ute and MU-X off-road SUV.

While China still has a way to go before it overtakes Japan in sales, it is obvious buyer preference is shifting.

If this trend continues, it will still take China a few more years to beat Japan in Australian new-car sales, but at the rapid pace the former moves with products and technology, that gap could quickly close.

Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.

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