With no spy concerns and tariffs, BYD and other Chinese EVs race ahead in Australia

Since coming to power in 2022, Prime Minister Anthony Albanese’s government has aggressively promoted EV adoption as part of the country’s plans to cut down on emissions – a change that came after a decade of weak climate action under conservative leaders.

That’s created a powerful tailwind for electric car demand. EVs accounted for 7.2 per cent of Australian new car sales in 2023, up from 3.1 per cent a year earlier.

While Tesla too is greatly benefiting, it is the Chinese manufacturers in the non-premium end of the market which pose the biggest threat to incumbent carmakers like Toyota and Ford whose wide line-ups of petrol-engine cars mean they have more to lose.

Last year, sales for EV giant BYD, which entered the market in 2022, climbed nearly six times to more than 12,000 vehicles. It now has 14 per cent of Australia’s EV market, second to Tesla which has 53 per cent, data from the Federal Chamber of Automotive Industries shows.

“The opportunity is very clear,” said David Smitherman, chief executive at EVDirect, BYD’s distributor in Australia.

“We need to now get into the mainstream market because we’ve sold to the early adopters and the passionate EV purchasers.”

BYD will add two SUVs and a pickup truck to take its product line-up in Australia to six this year, Smitherman said. EVDirect will also open 30 more dealerships in the next 18 months for total of a 55 and has embarked on fleet sales to companies like Uber.

Chinese state-owned SAIC Motor will launch three new models this year under its MG brand, including the MG3 plug-in hybrid and MG Cyberstar electric roadster, taking its EV/hybrid product line-up in Australia to five.

Incumbent carmakers are also looking to up their game. Ford has two electrified vehicles in