Here’s where Chinese brands aren’t winning

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Tim Gibson

News Journalist

3 min read

These luxury brands are having a smashing time in the SUV game.

October sales data has revealed that established luxury brands are still successfully fending off competitors, including their Chinese challengers. 

The SUV market is the most fiercely contested new car segment in Australia, accounting for more than 60 per cent of sales.

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There has been an influx of Chinese alternatives into the Australian market recently as they look to take hold.

Sales data indicates Aussie buyers are sticking with traditional and more luxury alternatives, such as Mercedes-Benz which recorded a more than 15 per cent increase in year-to-date sales to the end of October, compared to the same point in 2024. 

Among the big sellers for the German giant have been its mid-size GLC SUV, which has seen an almost 50 per cent year-on-year increase.

Its smaller GLA has received a boost in sales of a little over 16 per cent, while the large streamlined GLE is up more than 30 per cent. 

2026 Mercedes-Benz GLC
2026 Mercedes-Benz GLC

This upturn means the brand is approaching 20,000 sales overall for 2025, which is more than 3000 more than this time last year. 

German rivals Audi and BMW and are also up for the year, registering 1.5 and 4.7 per cent increases, respectively. 

Japanese luxury brand Lexus has enjoyed a similar increase, up almost 10 per cent compared to this time last year. 

2026 Lexus LBX
2026 Lexus LBX

Its LBX SUV has seen a sales increase of 46.5 per cent, equating to just shy of 1800 examples sold for 2025 so far, with the larger NX still a strong seller.

Chinese brands have not been deterred by this resurgence of established options, and are still a force to be reckoned with in the market. 

There are new Chinese brands entering the fray, offering more affordable options comparatively to the big hitters, with greater variety in powertrain set-ups.

BYD has introduced the plug-in hybrid Sealion 6 and all-electric Sealion 7 in the SUV space, while GWM’s Tank 300 and Tank 500 have posed a challenge to other manufacturers. Zeekr’s 7X is another choice for buyers.

BYD’s Sealion 6 and Sealion 7 combine for nearly 10 per cent of total sales in the cheaper medium SUV segment, attempting to hunt down its rivals. 

The MG HS Hybrid+ is a new option and will start from $40,990, before on-road costs, while the IM6 recently launched as a luxury all-electric SUV starting from $60,990, drive-away.

Photo of Tim Gibson
Tim Gibson

News Journalist

One of Tim’s earliest memories of cars is sitting in an Aston Martin at a car lottery in Heathrow Airport as a child preparing to come back to Australia after a holiday. He dreamed of being a journalist from early high school and worked as a football match reporter for his local association in the Illawarra before moving on to bylines at Football New South Wales and Football Australia. After working on radio at ABC Illawarra during university, Tim joined CarsGuide as a News Journalist to tackle the latest motoring news.
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