China beats Japan as primary seller for vehicle imports in Australia, while Toyota sales slump for second month in a row

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In just two months of sales for 2026, the Australian new vehicle market has marked a major milestone, with Japan losing its title of lead vehicle importer for the first time in 28 years.

China will hold the title of Australia’s lead vehicle source by volume for February, alone contributing 25,781 new vehicle sales, ahead of Japan (21,671) and Thailand (19,493). These figures represent new vehicles assembled in their respective nations.

Overall, new vehicle sales for the month of February totalled 94,131 units, down 2.7 percent year-on-year (YOY) when combining data collected from both the Federal Chamber of Automotive Industries and Electric Vehicle Council. 

Australia’s favourite vehicle for the month of February was the Ford Ranger, 2025’s overall winner. It managed 4325 deliveries last month (up 7.1 percent on February ’25), ahead of the fresh-faced Toyota Hilux (3625), Tesla Model Y (2791), Chery Tiggo 4 (2315), and Mazda CX-5 (2099).

The Chery’s remarkable 116.8-percent gain year-on-year from February 2025 (1068 units) contributed in no small part to the dominance of Chinese-sourced vehicle sales for the month.

While Chinese automakers may not snag other prestigious titles such as Australia’s most popular brand, – Toyota – or car, – the aforementioned Ranger – an increasing number of cut-price Chinese vehicles such as the Chery Tiggo 4, BYD Sealion 5, and Geely EX5 have quietly contributed to China’s huge leading-importer win.

For instance, ninth-place Haval Jolion (1804) enjoyed 38.1-percent higher volume than this time last year.

An uptake in Chinese vehicle manufacturing has also helped the nation dethrone Japan. International brands like Tesla, Polestar, and Volvo exclusively market Chinese-assembled vehicles in Australia, last month contributing 3274, 145, and 630 sales respectively. 

Additionally, models from other Asian brands such as Hyundai’s Elexio, Mazda’s 6e, and Kia’s EV5 are sourced from China in an effort to optimise cost and affordability. 

Despite a shift in buyer attitudes, Japan-owned and predominantly assembled Toyota remained Australia’s leading vehicle retailer, last month contributing 13,606 vehicle sales to alone comprise 14.5 percent of the new vehicle market.

Toyota’s impressive result comes despite a huge 5226-unit sales decrease year-on-year (down 27.8 percent).

The Japanese automaker attributed this downturn to ‘buyers transitioning to new models‘, referencing the new-release Toyota Hilux and forthcoming sixth-generation RAV4. These cars lead a Toyota new-model product offensive which encapsulates the upcoming Toyota Hilux BEV, CH-R electric, and later, a modular-platformed Corolla.

Toyota Australia executives are still confident the brand will register more than 200,000 new vehicles by the end of 2026.

Japan’s Mazda placed second in February new vehicle sales, shifting 7042 units (down 19.9 percent YOY), with Ford nipping at the heels to take third place with 6907 units (up 9.0 percent).

Both Kia and Hyundai rapidly closed the gap on the podium last month, narrowly missing out on a market-favourite shake-up. Kia took fourth-place overall with 6710 units (just 197 units shy of Ford), and Hyundai snagged fifth with 6266 units. 

Over 60.3 percent of all vehicles sold last month were SUVs. Light commercials (such as utes) took second place, comprising a further 22.5 percent of the market, leaving heavy commercial and passenger cars to scramble over a remaining 17.2 percent.

Pure petrol and diesel continue to be Australia’s favourite fuel types for 2026, contributing 33,309 and 26,963 sales respectively during the month of February. Plugless-hybrid took third for the month with 13,868 sales, and dedicated EV fourth with 11,134 sales. PHEVs numbered just 5854 examples.