New automotive challengers set their sights on Australia
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11 min read
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News
11 min read
It seems like a new challenger auto brand is being confirmed for the Australian market on an almost weekly basis these days. All employ aggressive export expansion strategies, some of them with plans to become top-five players Down Under and at least one of them to overtake Toyota and dominate the local industry.
Yet, which brands are either officially confirmed or all but certain to come to the local market in the next 12 to 18 months or so, and how will this impact your business and the broader automotive landscape?
Last year, we brought you the new market entrants that were entering the Australian market to join the importers already here. Most of the heavy hitters have now arrived and set up shop.
The new brands yet to arrive are often subsidiaries owned by the larger mainstream firms and have a very different role to play in Australia. If the first wave aimed to build volume, the second is coming to build profit. And aspiration. With rare exception, these new brands promise luxury, prestige or high-grade off-road products.
These are companies that have seen the Tesla business model and want some of that for themselves. Holding out the promise of much faster charging, thanks in no small part to lithium iron phosphate (LFP) battery technology, these upcoming brands are at an advantage against EVs from other makers. However, which of these companies are joining the fray in Australia over the next few years, and what does this mean for dealers and the competitive landscape?
Many questions remain around issues like pricing, warranty, servicing and other aftersales provisions, all crucial considerations for dealer networks. Not to mention the impact on existing auto brands and their model ranges. And then there’s the question of long-term viability for some of these start-ups: export or extinction?
But for now, here (in no particular order) are the 13 new challenger auto brands we expect to arrive in Australia soon, and what they mean for the industry.
An electric sub-brand owned by upcoming brand GAC Motor, Aion is primed to introduce the UT, a Toyota Corolla-sized hatchback, in the Australian market during 2025.
It’s speculated that the Aion UT will snatch the mantle of Australia’s cheapest EV from the BYD Dolphin when it arrives, possibly undercutting the Dolphin by several thousand dollars. That’s serious disruption territory for dealers working in the budget EV space.
The second-generation Aion ‘V’ small SUV is also expected to join the local range some months later, positioning Aion as a direct threat to the likes of both MG and BYD. The Aion Hyper supercar division is also a chance to come Down Under with its Ferrari-slaying, Thai-built SSR, think halo effect for the brand.
A brand aiming to take market share away from Tesla, Avatr is owned by a consortium of Changan, battery-maker CATL and telecommunications giant Huawei. That’s quite the tech partnership.
A spokesperson for the brand has told carsales that the brand would like to set up shop in Australia from 2026. The model portfolio from launch is expected to comprise either, or both, the Avatr 11, a mid-size electric SUV, or the striking Avatr 06, a large, luxury sedan. Both models are available in their home market with plug-in and extended-range variants.
Denza, a luxury arm from mainstream brand BYD, is tipped to enter the Australian market this year. For dealers, this represents BYD’s serious push upmarket.
The brand will launch with the B5, a plug-in hybrid SUV based on the BYD Shark 6. In good news for local dealers and buyers, the B5 has been tested locally for chassis tuning, powertrain calibration and durability. That’s the kind of local development work that builds confidence.
Other models in the range yet to be confirmed for Australia include the larger, LandCruiser-sized B8, the D9 (a luxury people mover), and the N9 SUV, with three rows of seating. Also on the cards for Oz, the slinky Z9 GT resembles a Porsche Panamera Sport Turismo with a BYD Seal nose grafted to it.
Automotive giant Guangzhou Automobile Group (GAC) confirmed plans last year to launch in Australia in 2025 with an arsenal of combustion and electrified models, particularly in the large SUV segments.
The two frontrunners are the GS8 hybrid (featuring Toyota hybrid technology) and the ES9 plug-in hybrid. However, other models earmarked for Aussie release in the next 18 months include the M8 and E9 people-movers.
How the two large SUVs fare against the established Kia Sorento and Toyota Kluger champions remains to be seen, although the new duo will likely have the edge on pricing at the very least. And further down the track, there’s a chance a production version of the Cybertruck-inspired Pickup 01 will come to Australia.
Due to legal objections from Apple, Chery will market its iCar brand as iCaur in global markets, which will include Australia next year.
Not so much a luxury brand as an off-road-focussed brand, iCaur will start its right-hand drive offensive in that home of the Land Rover, the UK. The plug-in/range-extended iCaur V23 looks like the love child of a Suzuki Jimny and a Toyota FJ Cruiser.
It’s one of three vehicles likely to get the nod for Australia, the other two being the larger V25 range-extended hybrid SUV and the flagship V29, a vehicle approaching the Range Rover in size. For dealers in regional areas or those with adventure-focussed customers, this could be interesting territory.
IM Motors is an offshoot of MG. The importer has already announced prices and specifications for the first two models to go on sale, the IM5 sedan and the IM6 SUV.
Both vehicles are based on the same modular platform underpinning the MG4 and feature single or dual electric motors. Prices undercut the smaller Tesla Model 3 and Model Y, and even the flagship IM6 costs less than $91,000 on the road. For existing MG dealers, this is a natural step up the premium ladder.
Deliveries of the two EVs are set to start within months.
Another auto brand of the Chery Holdings Group that’s on the radar for Australia is Jetour, an SUV specialist projected to enter Australia shortly, although that remains unconfirmed.
A reliable US report last year quoted official sources as confirming Jetour would enter both the Aussie and Kiwi markets sometime in 2025.
It’s understood the brand will produce some right-hook vehicles locally, while others will be remanufactured from left- to right-hand drive using factory kits in Malaysia and Indonesia.
The most likely model to kickstart its Aussie assault is the Jetour T2 large off-roader, a cut-price Land Rover Defender-style SUV previewed by the Jetour Traveller.
One long-awaited brand that is now on the back burner for introduction to Australia is Lynk & Co, the upmarket brand formerly owned by Geely.
New parent company Zeekr (which remains majority owned by Geely) has chosen to establish itself in Australia first, pushing back a local launch for Lynk & Co by three years. Sometimes patience is required in this game.
Another newcomer steadying itself for an entry into the Australian auto market is NIO. As long ago as 2021, the brand had hinted at global expansion plans that included Australia.
The first model out of the blocks for the brand in Australia is expected to be the NIO Firefly, a small hatchback packaged to compete with the BYD Dolphin. Recalling the Honda e in its retro looks, the Firefly has been spotted testing in Australia.
Other models that could, or are likely to reach Australia include the ET5, ET5 Touring (wagon) and ET7 passenger cars, the ES6, ES7 and ES8 SUVs, and the EC8 coupe/crossover SUV.
Except for the Firefly and the EC7, the NIO range stalks Tesla (what EV brand doesn’t these days?). The ET5 and ET7 are competitors to the Tesla Model 3 and Model S, respectively, and the ES8 is a Model X rival, leaving Model Y buyers to be mopped up by the ES6 and ES7.
An electric SUV spin-off from NIO, Onvo will offer three models, the L60, L80 and L90. The Onvo L60 is aimed squarely at Tesla Model Y buyers.
As the flagship of the range, and boasting three rows of seats, the Onvo L90 is expected to pose a threat to the Kia EV9 if the Kluger-sized SUV makes it here. Yet unseen, the L80 model will sit between the other two models.
Just days after the TrueEV/XPeng announcement, local company EV Automotive announced it will import the Skywell ET5 mid-size SUV to Australia, where it will temporarily be rebranded as the EVA 5. Skywell was expected to be on sale by 2025 but that has yet to materialise.
First customer cars are due on local soil either late this year or early next, with pricing set to start from below $50,000 drive-away for the cheapest of three front-drive variants.
Two battery capacities of 72 kilowatt-hours (kWh) and 86kWh will be offered to sustain a 150-kilowatt electric motor, providing a maximum cruising range of between 400-490 kilometres depending on the variant.
The tech giant’s move into automotive represents an interesting convergence of technology and mobility. With a 2028 launch timeline, there’s plenty of opportunity for strategic market preparation.
At present, Xiaomi cannot meet domestic demand for its two models, the SU7 sedan and the YU7 SUV, both of which are larger EVs, in the same mould as Tesla’s Model S and Model X, respectively.
BYD is moving upmarket in Australia, with its Denza prestige stablemate on the way. But the well-established firm may also offer Aussies a brand that is even more aspirational. That brand is Yangwang.
Imposing and luxurious, the Yangwang U8 is an electric SUV that is bigger than a 300 Series LandCruiser and delivers the sort of opulence consumers expect of a Range Rover. The U8 has undergone local testing in the Northern Territory and South Australia, which bodes well for local introduction.
At the other end of the packaging and dynamics scale is the Yangwang U9, a sleek sports coupe that incorporates BYD styling cues in a shape embodying similar proportions to an R35 Nissan GT-R.
While the stars are in alignment for the U8 coming to Australia (but possibly branded as a Denza product), the U9 is a more remote prospect, but not entirely out of the question.
This wave of new market entrants represents more than just additional choice for consumers. These challenger brands are bringing fresh approaches to everything from direct sales models to service delivery, and they’re not afraid to undercut established brands on price.
The smart money says some of these brands will succeed spectacularly, while others may struggle with the realities of the Australian market. The key for established brands and dealer groups is understanding which segments are most at risk and where the opportunities lie for partnership or competitive response.
One thing’s for certain: the Australian automotive landscape is about to get a lot more interesting.
A modified version of this article originally appeared on carsales.com.au
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