Chinese-affiliated brands are gaining ground across key segments of Australia’s new vehicle market, with lower recommended retail prices and competitive specifications helping them challenge established manufacturers, according to analysis from RedBook.
The July 2026 RedBook Insider analysis, based on VFACTS and Electric Vehicle Council data, compared the top 50 best-selling models based on year-to-date data to May 2026 year-to-date. It found Chinese-affiliated brands were driving particularly strong volume growth in small SUVs, medium SUVs and light commercial vehicles, while legacy manufacturers recorded more modest growth in several segments.
Price and specification shift the market
RedBook’s analysis found Chinese-affiliated brands were entering almost every comparable segment at materially lower average recommended retail prices, with equivalent or, in some cases, higher levels of specification.
The analysis identified the price gap as a key factor behind the changing market dynamics. The average RRP for Chinese-affiliated small SUVs was around $33,000, compared with approximately $40,000 for legacy and non-Chinese brands. In the medium SUV segment, the respective averages were around $43,000 and $46,000, while Utes averaged approximately $45,000 compared with $51,000.
RedBook said the trend extended beyond cheaper electric vehicles. Since the COVID-19 Pandemic, established mainstream manufacturers have increased recommended retail prices due to factors including supply chain cost recovery, electrification investment, specification increases and margin optimisation.
Chinese-affiliated manufacturers have moved into the resulting value gap across both ICE and EV powertrains.
Implications for fleets and automotive businesses
The changing market has implications for fleet managers, dealers, financiers and insurers.
For fleet operators and financiers, RedBook said total cost of ownership assumptions may need to be reassessed as Chinese-affiliated brands increasingly compete through a combination of price, warranty, specification and running costs.
The changing brand mix also has implications for residual value forecasting, particularly in segments where established manufacturers previously held stronger pricing positions.
Insurers face evolving risk profiles as the vehicle parc includes more vehicles from newer and less-established brands, potentially introducing different parts supply chains and repair cost infrastructures.
For dealers, the competitive equation is increasingly shifting towards price-to-specification ratios rather than brand heritage.
The rise of Chinese-affiliated brands represents more than a short-term increase in competition. Rather, it indicates a shift in what buyers consider value, with consequences for businesses involved in pricing, financing, insuring, and managing vehicles.
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