Surge of Chinese EVs in Australia Sparks Dumping Concerns, Up to 50 Brands Expected by 2030

By Madz Dizon

Jun 12, 2024 03:58 AM EDT

Surge of Chinese EVs in Australia Sparks Dumping Concerns, Up to 50 Brands Expected by 2030
A Hyundai KONA Electric charges at a EV charge station in Crows Nest on January 19, 2021 in Sydney, Australia.
(Photo : Brendon Thorne/Getty Images)

Concerns spark over the increasing number of Chinese electric vehicles entering the Australian car market, with suggestions that a significant number of brands could arrive by the turn of the decade.

China Leads Australian EV Market with 80% Share

In accordance with data from the Federal Chamber of Automotive Industries, China has dominated the electric vehicle market in Australia, supplying over 80% of EVs in the country during the initial months of the year. 

According to Sky News, Chinese vehicles have also gained popularity and now rank third in terms of popularity, trailing behind Thailand and Japan.

Increased awareness of electric vehicles and competitive pricing from Chinese brands are being cited as two important factors contributing to the recent rise in demand. 

However, concerns are growing over the impact of tariffs imposed by the United States and European Union on cars imported from China.

READ NEXT: OCBC Bank to Bolster Corporate Banking with Expanded Software Engineering Team in Shenzhen 

EU Investigates China's EV Exports

While both moves are motivated by the goal of safeguarding domestic manufacturing interests, the EU took the initiative by conducting a thorough investigation into China's export behavior.

This investigation was prompted by concerns that Europe was being inundated with lower-priced EVs due to overcapacity and weakened domestic consumer demand.

In Australia, similar concerns have been raised, but the Albanese government has indicated that it does not currently believe tariffs are necessary. 

However, the Department of Foreign Affairs and Trade has stated that it will keep a close eye on the market for any indications of anti-competitive behavior.

Tesla continues to dominate the Australian market, with over half of all electric vehicle sales last year. 

However, BYD is making significant progress and gaining ground, thanks to its ability to provide a more affordable price point.

In January, BYD outperformed Tesla in monthly sales, with Elon Musk's company facing supply chain challenges.

According to Scott Dwyer, a representative from the University of Sydney's Institute for Sustainable Futures, Australia is reaping the benefits of the rise in Chinese-manufactured EVs, ABC Business via MSN reported.

READ MORE: Volvo Shifts Production of Chinese-Made EVs to Belgium Amid EU Crackdown Concerns

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