‘They’re in a different world’: Why cut-price Chinese cars like the Chery Tiggo 4 don’t worry Toyota Australia

---

Australian new-car sales remain strong in an increasingly price-sensitive market, but sales giant Toyota isn’t worried about losing its grip on top spot in Australia any time soon. 

New Chinese brands are offering more features and technology for prices that “so-called legacy brands” aren’t able to match, Toyota Australia vice president sales, marketing and franchise operations Sean Hanley told Chasing Cars.

“The reality is, we’re probably not going to be able to compete on price against all these new players.

“They’re in a different world to us, right? Trying different things, trying to inject themselves into the market, trying to find their place,” said Hanley. 

“Fair enough — that’s competition. We’ve been dealing with that [for] 50 years, that’s not new.”

What is new is the ferocity and sheer number of new market entrants in 2025. Two better-known names, MG and GWM, have been joined by Chery, Geely, GAC and many others in the last 24 months. 

It is the impressive sales result last month from the Chery Tiggo 4, a cut-price small SUV that Chasing Cars testing has found to be in need of improvement, that caught the attention of the local industry. 

In November, there were 2287 Chery Tiggo 4s registered in the country according to the Federal Chamber of Automobile Industries (FCAI) VFACTs report, making it the most popular small SUV and fifth best-seller overall. 

When asked what contributed to the Tiggo 4’s success, a Chery spokesperson noted an increasing dealer network (more than 86 locations) and brand awareness. 

“We look to continue this growth into 2026 with the brand further continuing to strengthen its local model lineup,” the spokesperson said. 

Toyota sales in danger?

Hanley isn’t put off by more affordable new brands making a major dent in Toyota’s local sales. 

“There’s always price sensitivity, that’s a fact of life. Is it the overarching consideration for the buyer in that segment (…) the Toyota buyer? I’m not so sure of that. 

“I don’t want to be complacent, or even arrogant about it, because there is price sensitivity — particularly in an economy that seemingly has growing cost of living issues,“ said Hanley. 

“However, it’s a reality of the territory we’re in. So therefore, If you can’t compete on price because you don’t believe it’s a sustainable model in this market, you’ve got to offer other things.”

In Toyota’s case, it’s a set of values that Hanley described as “not even strategically scientific”, including a proven track record with over 50 years in this country, a dealer network that extends beyond 250 locations, and generally class-leading resale value. 

“They’re the things we offer. And those values, I believe, are just as important to the young generation as they are for the older generation. Because what’s old has become new again, you see.”