September 2026 New Car Sales: Chinese cars dominate as BYD settles into second place in the sales race

Richard Blackburn

Contributor

Ranger tops RAV4 and Tesla Model Y on the podium while Aussie appetites for BEVs continue to surge

Chinese car brands dominated the sales charts last month, making up more than a third of sales, largely due to the popularity of their electric and plug-in hybrid models.

Relative newcomer BYD continued its spectacular growth, consolidating its second spot on the year-to-date sales charts behind Toyota.

BYD sales have more than doubled in the first nine months of the year on the back of booming sales of the electric Sealion 7 SUV and the plug-in hybrid Shark 6 ute.

Toyota sales were down 3.5 per cent on the same month last year, despite improved supply from head office. Only last month, the brand was predicting it would end the year with 230,000 sales. Year-to-date sales are down almost 16 per cent on 2025.

Chinese vehicles accounted for more than 35 per cent of total sales in September, while Japanese imports slumped to just 22.5 per cent of the market.

Sales of Chinese imports were up by 74.2 per cent in September, while Japanese imports were down 13 per cent and Korean imports dipped 21.5 per cent.

The Ford Ranger bounced back to the top of the sales charts with 5062 sales after the brand overcame the delivery delays that dogged the model in August.

The Toyota RAV4 took second spot with 4624 sales, narrowly ahead of Tesla’s Model Y (4476 sales) and Hilux (4455). BYD’s Sealion 7 rounded out the top five with 2687 sales.

Five of the top ten selling vehicles were made in China, while four Chinese brands made the top ten for the month.

Electric vehicles made up almost a quarter of the new-car sales last month. Last September, their share was just 11.3 per cent.

Australians bought 26,287 electric vehicles last month, compared with 26,018 petrol vehicles, 25,173 diesels and 17,843 hybrids.

More than half the new vehicles sold in September had some form of electrification.

The dramatic increase in EV market share has been driven largely by the high price of fuel in the wake of the Middle East conflict.

Generous fringe benefits tax exemptions have also made EVs more cost effective than petrol, hybrid and diesel alternatives for people leasing vehicles through work.

Federal Chamber of Automotive Industries acting chief executive Dianne O’Hara said the surge in EV sales was showing no signs of slowing.

“Australian motorists are embracing a broader range of powertrains, following greater model choice offered by manufacturers and growing competition,” Ms O’Hara said.

“The changes seen throughout this year are continuing. Many consumers are making practical decisions and selecting from the range of available technologies that best meet their needs.”

Plug-in hybrid sales in September were more than double the same month last year, while hybrid sales grew by more than 20 per cent. By contrast, sales of conventional petrol vehicles were down by 36.2 per cent and diesel by 18.4 per cent.

Sales of traditional utes and vans have slumped this year. Sales were down 13.2 per cent in September and more than 10 per cent year-to-date.

Meanwhile, sales of big American pick-up trucks are growing, up 13.2 per cent in September and almost 12 per cent year-to-date.

Japanese and European brands continue to suffer from the onslaught of attractively priced Chinese EVs.

Volkswagen sales were down 36.9 per cent last month, while Subaru (down 42.6 per cent in September), Mitsubishi (down 41.5 per cent), Suzuki (down 39.3 per cent) and Nissan (down 30 per cent) are also struggling to attract buyers.

Overall new-car sales were up slightly from last September, with 108,778 sales recorded, compared with 106,891.