Car brands preparing for tough end to year
By Stephen Ottley · 31 Aug 2026
Car companies must get used to surviving on fewer sales, even the biggest names in the industry.So says two leaders of such brands, with both the local Audi and Skoda bosses admitting the influx of new competition and the ongoing cost-of-living crisis is putting them under pressure.Among the top 20 best-selling brands across the first half of 2026 only two non-Chinese brands experienced sales growth - Kia (up just 0.5 per cent) and Honda (up 2.2 per cent). The rest of the long-popular brands, including Toyota, Ford, Mazda and Mitsubishi experienced double-digit sales declines.Meanwhile, the brands with huge sales growth in Australia were all the newer Chinese ones, with BYD, Chery, Geely, Omoda-Jaecoo and Zeekr all more than doubling their sales in the first seven months of 2026 compared to 2025.The overall market, the total number of cars sold, is almost exactly the same as the first half of 2025, with just 1459 sales difference. Which means that the metaphorical ‘pie’ representing the local market is the same size, but more people want a slice and some brands are commanding a very large slice.In this climate Lucie Kuhn, Skoda Australia Brand Director, admitted to CarsGuide she is accepting of her brand’s 3.4 per cent sales decline so far in 2026. In comparison to related-brands Volkswagen (down 18.9%), Cupra (down 31%) and Audi (down 14.4%), Kuhn is right not to be too unhappy with how Skoda is performing.“I think every brand would like to grow,” she admitted.“It's simply in our minds, and this is actually what moves the brands forward. This kind of, let's say, set-up. But unfortunately the market conditions are so challenging, and not just because of the new entrants."I think in general, interest rate, pricing and this kind of stuff. yes, actually being able to deliver the same volumes as the last year is actually a kind of relatively solid news, I would say.”When asked if 2026 will mark a turning point for the industry and which brands lead the sales charts, Kuhn admitted it is likely the case that the entire industry will recalibrate and established brands will have to get used to selling less volume.“ The industry will be recalibrating,” she said.“I think this year it has just started, but I think we have ahead of us another three years at least, maybe three up to five. We'll see when the entire industry will be, let's say, looking for its new normal."Seventy competitors in the market, yeah, it's a lot. And I think every brand will try to find not only its new normal, but find its new viable normal. And viable normal for all the stakeholders, because this is the most complex thing. It’s not just OEMs, importer, dealers, and still being competitive and attractive enough to the customer."This is what is ahead all of us, and it doesn't matter if it's a legacy brand, but it's also the Chinese entrants, they will have the same thing. Because running like that, it's simply a penetration strategy. It will end up somewhere… and then what?”Audi Australia Managing Director Jeff Mannering went a step further and believes the market is actually “overcooked” in terms of legitimate customer sales.“ I think the automotive industry, I think the whole economy is under pressure,” Mannering said.“I think that, as I said, the cost of living is going up. I think there's a lot of propping up of numbers through, you know, registrations of, there's a lot of fleet cars going into, like very cheap cars. There's a lot of manufacturer support. The number is probably, I reckon, about 20 per cent overcooked on what actually is a customer car, it's been like that for some time.”Mannering admitted that despite the arrival of a new Q5 e-hybrid and updated Q4, Audi is likely in for a difficult second half of 2026 in terms of pure sales.“Whether it's a bounce back or not we just need to make sure that we are working with our dealers and making sure that the customers are getting the information that they need to know about our products. It's gonna be a tough second half of the year,” he said.As for 2027 and beyond, Kuhn believes the car brands will simply need to adapt to a new normal, with a focus on profit over volume, regardless of the heritage of the brand.“Viable actually means that every brand needs to find a volume and price point. Yeah? That makes you profitable on the dealer level and on, obviously, the supply level; importer, OEM, whatever,” she explained.“So volume growth is not a priority. You're not pushing the volumes anymore. You simply find a balance between volume and profit, and this is what right now everyone will be looking for.”For both Kuhn and Mannering, they know they will need to fight harder for their ‘slice of pie’ in the coming years as more and more new brands arrive and further shakes up the local market. ”Yeah, true. Are we happy about it? I would say no,” Mannering said.“But if it eventuates, and if you just base it on maths, it probably will eventuate. It's our job to make sure that we shift with the times… fight for some more pie.”