Enough already! Australia has too many car brands - and not all of them will survive | Opinion

Whoever said ‘you can never have too much choice’ clearly never saw the Australian new car market in 2025. The country is being inundated with not only new models, but seemingly new brands every month.

In 2025 alone we’ve had the introduction of Cadillac, Deepal, Geely, GMC, Jaecoo, Leapmotor, Omoda and Xpeng to our roads. These join other relatively new arrivals which include (but aren’t limited to) BYD, Chery, Chevrolet, Cupra, JAC and Zeekr, with more reportedly on the way.

While competition is great, and certainly there are many very likeable cars from most of these brands, I’m starting to feel like we’ve reached breaking point in Australia. We buy just over one million new cars each year, and that number won’t rise sharply anytime soon, so each new brand only splits the market into even smaller pieces.

When you factor in Toyota accounts for around 20 per cent of the market each year, and that too doesn’t look like changing anytime soon, then you have nearly 70 brands fighting over 80 per cent of what’s left. 

While there’s certainly some major positives to this booming industry, namely the increased competition, especially the brands from China, have slowed down the dramatic price rises we’ve seen post-pandemic. The market was already headed that way before 2020, with many brands working out it makes better financial sense to sell fewer cars but at a higher profit than it does to sell lots of cars for less margin. Without question, a major factor in the growth of Chinese cars in Australia is thanks to the highly competitive pricing strategy brands like MG, GWM, BYD and others have engaged in.

These new brands do give choice, but the downside of so much choice is it makes it harder for you, the new car customer, to know what to buy. Obviously we do our best here at CarsGuide to keep you informed, but frankly there are so many new brands - both those with history and reputation and those without - that buying is simply getting more and more complicated.

One of the biggest challenges with new brands, as in brands with no history in developed car markets, is that a new model that seems solid and good value now may age terribly and give you no-end of problems. Or, alternatively, it could be great and problem-free - but it’s an expensive gamble to find out.

But the cold, hard fact remains, the new car market is only so big and unless all brands not named Toyota prepare for a smaller market share, then not all will survive in all likelihood. In recent years Holden has gone, so too has Chrysler and Citroen, and there are seemingly several more hanging on with shrinking sales numbers. That will almost certainly leave customers facing an uncertain future for parts, servicing, etc, not to mention it will likely tank resale value. 

So, yes, choice is great, but too much choice can ultimately make life harder for everyone involved. Because at what point do we stop - 80 brands? 100? It may sound silly but at the rate some of these newer brands are multiplying with spin-offs and sister-brands, there appears to be no end in sight - and that’s not necessarily good news…