Industry news
Watch your back Mazda, Hyundai and Ford!
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By Stephen Ottley · 01 Feb 2026
Ready or not, there is a new world order coming to the Australian new car market. The established order at the top of the sales charts is set to change dramatically in the near-future as local buyers continue to embrace the Chinese car brands.Like Japanese and Korean cars that came before, the initial backlash has given way to widespread acceptance and analysing the sales trends from recent years makes it clear that several of the leading Chinese brands are on the verge of cracking the top five in sales in 2026.But, as Newton’s Third Law of Motion tells us, for every action there is an equal or opposite reaction, which means brands that have been firmly ensconced in the top five on the sales charts will drop out.So, who will be the lucky Chinese brand to crack the upper echelon first? And which more established brand is most likely to drop out?For the first question there are two stand-out candidates and two more wild card options. GWM and BYD are the current leaders of the Chinese brands, finishing in seventh and eighth place on the 2025 sales charts. That’s a rise from 10th and 15th in ‘24, as GWM enjoyed a very healthy 23.4 per cent increase in sales last year, while BYD managed a staggering 156.2 per cent increase. But that wasn’t the biggest growing Chinese brand. That title belongs to Chery, which just missed out on a top 10 sales finish with 34,889 sales in 25, which was a massive 176.8 per cent growth on the previous year. And those figures don’t include the 3721 Omoda and Jaecoo sales. The final wild card is MG, which notched 41,298 sales in ‘25 but suffered a 18.4 per cent decline and fell from seventh to 10th on the charts. MG will need a dramatic turnaround but has installed new management specifically to address that problem.GWM and BYD are the clear-priced favourites to upset the order and put more pressure on the likes of Hyundai, Kia and Mazda in ‘26 and beyond. Both are investing in expanded line-ups, while GWM is going a step further and locally-tuning its new models to even further appeal to Australian customers.So who is the brand under the most threat of a sales ladder fall? Hyundai finished in fifth place in ‘25, but that was a clear improvement on ‘24, with the brand enjoying 7.7 per cent sales growth.Kia was next up, but was effectively neutral last year, reporting less than one per cent (0.4%) sales growth. Given this came despite the addition of the highly-anticipated Tasman ute, that’s not a positive result for the brand and puts more pressure on in ‘26.Mazda claimed third place, but suffered a 4.2 per cent sales decline, however, with sales over 90,000 units it can probably be considered fairly safe unless there is a dramatic change in the near-future.For either GWM or BYD to jump into the top five sellers they will need to add more than 25,000 sales. While that’s undoubtedly a huge jump, BYD actually attracted more than 31,000 new customers in 2025 - so it’s not impossible. Especially as it will add four models full-time this year - Atto 1, Atto 2, Sealion 5 and Sealion 8.So, while Toyota is likely to stay comfortably ahead of everyone else, the rest of the established order is up for grabs as Australian customers embrace these new brands and put pressure on the bigger names.
BYD is beating Tesla - and this is why
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By Stephen Ottley · 31 Jan 2026
Tesla’s electric vehicle dominance came to an end in 2025, losing its global sales crown to BYD as it experienced its second consecutive year of declining sales.But most worryingly for the American brand, there is no reason to believe 2026 will be any better.For the first time official sales data credited BYD with 2.24 million electric vehicle sales, comfortably ahead of Tesla’s 1.64 million. While a win is a win, it’s the reasons why BYD trumped Tesla that should be of most concern to Elon Musk and his team.BYD out-performed Tesla despite suffering its weakest sales growth in its domestic market, but while enjoying sales growth in Europe and Australia. Notably, while Tesla remained Australia’s biggest seller of electric vehicles, with 28,856 recorded sales, BYD closed in dramatically, notching 25,207 EV sales (for direct comparison, that figure excludes its plug-in hybrid models).What really helps BYD’s cause moving forward is its focus on expanding its offerings and markets globally. Canada recently removed some of its restrictions on Chinese-made cars, which opens up a new growth region, and Europe has eased its hardline stance too.BYD has already confirmed the Atto 1, Atto 2, Sealion 5 and Sealion 8 will all be in Australian showrooms shortly, joining the Atto 3, Dolphin, Seal, Sealion 6 and 7 as well as the Shark 6. And that’s just the models confirmed, with either all-new or already available options likely to be added when the time is right.In contrast, Tesla is betting, once again, on technology. Musk’s current focus (at least in terms of Tesla) is growing both its robotaxi business and developing humanoid robots. Not a new, more-affordable car to compete with the Atto 1, but robots. BYD, on the other hand, is focused on making cars and expanding its portfolio to reach new customers. It doesn’t take a deep automotive industry analysis to assess which plan is the more likely chance of success.While there may well be a need for millions of humanoid robots suddenly over the next decade, the more humble reality is most people will be happy with a new car - even one they have to drive themselves.Which is really the difference between the two companies. BYD is a car manufacturer, Tesla is a technology company that happens to make cars. Musk has always seen Tesla as something different, something unconventional and the hard reality is that will ultimately limit its potential as a car maker. Don’t believe me? Well, just look how much time and resources Toyota, the world’s biggest car company, is investing in humanoid robots…That’s the underlying goal for BYD - beating Toyota. Becoming the biggest EV brand is merely a stepping stone along the way to its end goal. Although, achieving that will be a much harder task.In the short-term, there is seemingly little chance Tesla can recover the lost ground to BYD. The Chinese brand should be able to grow further in 2026, while Tesla faces an uncertain year ahead with no brand-new products coming and seemingly waning interest in what is already available.What Tesla needs in the short-term (and long-term) are more vehicles to sell. The Model 3/Y market is saturated, particularly in Australia, and the much-hyped Cybertruck has been a sales flop. Without new products to drive sales, Tesla will have to get comfortable not being the world leader in electric cars.
Toyota reveals battle plan as it fights China
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By Andrew Chesterton · 31 Jan 2026
Japanese automakers are facing a future-threatening crisis that threatens their very survival, says Toyota's global CEO Koji Sato, speaking in his role as chairman of the Japan Automobile Manufacturers Association .As reported by US industry title Automotive News, one of the world's most important automotive CEOs has unveiled a seven-point plan to ward off new challengers, principally from China, before calling on Japanese auto makers to unite in the face of the challenge."The question is how we can identify Japan’s winning strategies,” the executive said. “To survive the current difficult environment and grow as a mobility industry, I believe it is essential for the entire auto sector to unite and enhance our international competitiveness.”Mr Sato has identified seven major challenges facing the Japanese industry, and how to combat them, and has called on all members of the Japan Automobile Manufacturers Association to support the "plan of action".Step one in the plan is to lock down a stable supply of rare earth materials and lithium, given Japan’s dependence on their import. That puts the country on a collision course with China, who has exerted influence over supply chains.Step two is to forgo an EV-only approach to its future, with Toyota’s long-touted “multi-pathway approach” that focuses on hybrid, plug-in hybrid and pure-petrol powertrains in the mid-term. Toyota is also a supporter of hydrogen fuel cell technology.Step three is to invest in the most circular economy possible, linking brands together in tracing data and componentry.Step four is to take a lead out of Korea and China’s books, with both countries only too happy to embrace international expertise, be it in design or engineering. The plan highlights the challenge of attracting international talent to Japan, and insists that must change, especially in an era of software-heavy vehicles.Step five is to chase-down Tesla in vehicle autonomy - a field Japan was once a leader in - by removing regulatory roadblocks and introducing a locked-in deadline for full autonomy.Point six is to reform the taxes applied to vehicle sales in Japan, which can add up to thousands of dollars over the ownership cycle of a vehicle.And finally, point seven is to lower production costs by commonising componentry at scale, and building efficiency into the supply chain.“I believe it’s crucial to focus on how we can revitalise Japan’s automotive industry while building a sustainable business model,” Mr Sato said at a JAMA function. “I will strive to ensure Japan’s automotive industry can play a solid role within the global landscape.”
Chinese SUV newcomer in urgent recall
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By Tim Gibson · 30 Jan 2026
Jaecoo J7 recalled for potential "sudden loss of motive power."
BYD's latest rival teased in China
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By Tim Gibson · 30 Jan 2026
MG has teased its new all-electric sedan, as per a report in Car News China.The car could be MG’s latest efforts to break into the electric sedan segment in China and export markets. The image shows a blurred shot of the car in purple paintwork, with four doors and a coupe-like sloping roofline.Its overall design is sleek and sporty, but eerily similar to many of its potential rivals.It looks very similar to the Xiaomi SU7 electric sedan, meaning it is likely to be a rival for that car, which is rumoured to be heading to Australia within the next couple of years. The design also resembles the MG7 sedan, which recently launched in Australia with a 2.0-litre turbo-petrol engine, producing 170kW and 380Nm. This lends weight to the possibility that this new sedan is an electric MG7 variant, as does eagle-eyed reporting that spotted a small badge on the side of the car, reading '07'. There is no confirmed information about the car’s potential specifications or price, nor whether we might see it in Australia. If it does come to Australia, its closest rival will be the BYD Seal pure-electric sedan, with a starting price of $49,888, before on-road costs. It could also take on the China-built Tesla Model 3, which remains one of the best-selling EVs in Australia. MG currently has the electric IM5 on sale in Australia, starting from around $57,000, before on-road costs.So far, 164 examples of the IM5 have been sold Down Under, since it went on sale in June and it was one of the best-selling premium electric sedans in December. The IM5 competes with European electric sedan rivals like the BMW i5 and Porsche Taycan. MG is expected to bring across several new models in 2026, including the MG4 Urban, shaping as a more budget-oriented EV hatchback.
Merc aims to make its best even better!
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By James Cleary · 30 Jan 2026
More than fifty years after the model designation was first formally applied to Mercedes-Benz’s top-tier sedan, the German maker has unveiled a substantially upgraded version of its S-Class flagship.Claimed to consist of 50 per cent newly developed components and scheduled to arrive in Australia in the fourth quarter of this year, the update also corresponds with the three-pointed star’s celebration of 140 years since Carl Benz patented his ground-breaking motorwagen in 1886.Mercedes-Benz Australia told CarsGuide the local model line-up is yet to be confirmed, but there are no fewer than seven variants on offer for European markets (S350d, S450, S450d, S450e, S500, S580 & S580e) with standard and long versions available, the latter adding 110mm to the wheelbase and overall length.Engine options range across a 3.0-litre, in-line, six-cylinder, turbo-petrol producing up to 330kW/600Nm, a 3.0L twin-turbo diesel delivering 230kW/650Nm and a 4.0L twin-turbo flat-plane crank V8 pumping out 395kW/750Nm.Revised plug-in hybrid powertrain options combine the six-cylinder petrol engine with a single electric motor for up to 430kW (+55kW) and 750Nm of combined torque. A 22kW battery delivers an electric-only driving range of 93-103km.On the outside, luxury car-spotters should look out for a larger (illuminated) grille with the option of an illuminated star on the bonnet.Digital micro-LED headlights are new, as are tail-lights featuring chrome-framed stars. A fresh 20-inch wheel design incorporates 50 cross-spokes. Striking, or a detailing nightmare?Inside, the Mercedes-Benz ‘MBUX’ multimedia interface consists of a central 14.4-inch screen and a 12.3- inch passenger display combined under a continuous glass surface.Larger 13.1-inch displays are offered in the optional ‘MBUX High-End Rear Seat Entertainment System’. Speaking of entertainment, an optional Burmester ‘High-End 4D-Surround-Sound’ system includes ‘tactile transducers’ in the seats to “vibrate and pulse in time with the music” as well as 39 speakers, four exciters, 1750-watt output and Dolby Atmos.A fourth-gen ‘MB.OS supercomputer’ enables an expanded app portfolio including streaming platforms like Disney+ as well over-the-air updates and AI from ChatGPT4, Microsoft Bing and Google Gemini combined in one system to power up the car’s ‘Hey Mercedes' virtual assistant.Other tech highlights include upgraded park-assist functionality, the option of integrated video conferencing and heated seat belts “with a soothing warmth of up to 44°C”.Air suspension is standard across the line-up with ‘E‑Active’ body control an option.Also available to order is the new S680 Guard 4Matic special-protection vehicle combining an in-house developed ‘Integrated Protection System’ comprising an aluminium outer skin to achieve VR10 20, which Mercedes-Benz said is the highest civilian protection level.Pricing and final specification will be confirmed closer to the car’s local launch but in Germany the entry-level S350d 4Matic starts at €121,356.20 (including 19 per cent VAT) which, on a direct currency exchange translates to just under $206,000. For reference, the current (non-Maybach) Mercedes-Benz S-Class range starts with the S450 4Matic at $244,700, before on-road costs, rising to $335,100, BOC, for the S580L 4Matic.
Zeekr rival's 750km family EV
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By Tim Gibson · 30 Jan 2026
Xpeng’s updated X9 electric people mover has just been shown off, sharpening up as a rival in the competitive segment.
Why Tesla is no longer S3XY
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By Tom White · 30 Jan 2026
Tesla will end production of its groundbreaking Model S sedan and its Model X SUV spin-off, the two models that put the brand on the map and arguably started the global electrification push.Controversial CEO Elon Musk said the Model S and Model X will reach the end of the line before the middle of this year as the company reconfigures its California factory to produce its Optimus home assistant robot.The Model S and X were discontinued in Australia in early 2023, and our market never saw the significantly updated models that were sold only in left-hand-drive markets over the last few years of their production run.“It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” Musk said during the brand’s fourth quarter earnings call.“If you’re interested in buying a Model S and X, now would be the time to order it.”However, while the Model S and X might go down in history as one of the most influential duos ever built, ushering in the age of electrification, the writing has been on the wall for the larger Tesla models for some time.According to Tesla’s Q4 2025 Production, Deliveries & Deployments statement, the Model 3 and Y accounted for 97 per cent of the brand’s global footprint last year.According to Musk, once the Model S and X factory is re-purposed for Optimus robots, it is targeting a production of one million units a year. The home assistant robot will apparently be in its as-yet-unrevealed third-generation form, which Musk says is the first version meant for mass production.Meanwhile, the Tesla factory in Texas will begin producing the brand’s latest model, the driverless Cybercab, over the course of the first half of the year.According to Musk, the Cybercab won’t have “human controls” and a recent pre-production version spotted testing in the wild stuck relatively closely to the cars shown at the company’s I, Robot reveal event in 2025.While driverless trials have already started in the US for Tesla’s pilot robotaxi service without back-up drivers, the path to implementing driverless taxis in Australia is much less clear.Although Tesla has launched its self-driving software, styled FSD (Supervised) into our market, it currently exists in something of a legaslative grey area, specifically requiring the driver to be aware at all times. As long as the driver meets the monitoring conditions in the car, it can fully navigate of its own accord simply based on the in-car navigation software.It is unclear what happens in the event of an accident, although regulators are working on a legal framework, aware that more autonomous vehicles will be on our shores before long.Tesla is not the only automotive company with a stake in robotics or autonomous vehicles. While almost every brand, especially Chinese carmakers, are developing autonomous vehicle tech, other companies like Hyundai are heavily invested in robotics.The South Korean giant purchased US robotics firm Boston Dynamics, which is known for its humanoid and quadruped robots, used for a variety of industrial and military applications.Tesla’s local operation continues to tick along nicely, with the Model Y retaining the title of the best-selling electric car in Australia by a healthy margin. It was also the 10th best-selling vehicle in Australia overall in 2025.Its Model 3 isn't faring as well, down 61.3 per cent year-on-year, although it is still the third best-selling EV in Australia.The biggest threat to Tesla is the rise of Chinese rival BYD, which stormed the charts in 2025 off the back of its popular and competitively priced range of electric and plug-in hybrid vehicles.While the Model Y kept its closest competitor, the BYD Sealion 7, at bay last year, it’s hard to imagine the pioneering American brand staying ahead of its competitors for long with little in the way of new product on the horizon.
Toyota's old school plan to fix huge problem
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By Tim Gibson · 29 Jan 2026
Toyota will offer steering locks as part of its battle to maintain security on its new vehicles.Late last year, 60 high-end Toyota vehicles were allegedly stolen, including LandCruiser four-wheel drive and LandCruiser Prado models, with a total estimated value of $9.0m.Many of these have individual starting prices at or above $100,000 mark.They are also some of the best-selling cars in Australia.Several were recovered in Melbourne and Queensland, before they were meant to be shipped overseas.Toyota Australia released a statement earlier this month and said security enhancements have been implemented. “Toyota is committed to continuously improving vehicle security and has progressively introduced advanced protective measures across its range. “In 2025, Toyota took further steps to enhance security on several models, including the New HiLux, LandCruiser 300 and LandCruiser Prado providing owners with even greater peace of mind,” the statement said.It looks like Toyota have now beefed up its physical prevention with the addition of a steering lock as an optional accessory.The steering locks are available as a genuine Toyota accessory on all models, and in the past few decades were used as a deterrent to car thieves.“Constructed from automotive-grade steel for strength and durability. An internal spring system ensures the arm extends smoothly with minimal effort, while the four-point contact technology delivers a secure and consistent grip on the steering wheel,” Sydney City Toyota’s website reads.“The locking system is designed with anti-tampering features to enhance security and reliability. The surface is coated with a soft resin finish that helps prevent scratches or damage during use.“The bright red body improves visibility and serves as a clear deterrent.”The steering lock is likely to be the first of several new features to be provided by Toyota for increased security.The brand is currently developing an additional engine immobiliser to combat the issue.
The empire strikes back at China!
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By Dom Tripolone · 29 Jan 2026
Chinese carmakers have got the jump on the Europeans, with the emerging brand delivering superior electric cars at cheaper prices. Now German carmakers are finally ready to fight back.BMW is preparing its new iX3, which is the first vehicle off its much ballyhooed Neue Klasse electric vehicle platform.First deliveries commence in Europe in coming months before its Australian arrival mid-year.It appears to be a smash hit before a single order has been filled.According to Autonews, demand has far exceeded expectations and BMW has been forced to introduce a second production shift at its factory in Hungary to catch up.This kind of fever pitch sales run mimics that of some of the most popular alternatives in China.Vehicles such as the Xiaomi YU7 electric SUV, which would be a rival to the iX3, received more than 200,000 orders within minutes of going on sale.BMW sales chief Jochen Goller said customer interest in the iX3 had been “overwhelming”.On paper the iX3 is the most impressive electric car from a Euro maker to date, with some deeply compelling stats.Leading the charge is its WLTP-verified 805km driving range, which leaves a lot of petrol cars in the shade.Next up is its 400kW max charging rate, which BMW claims can pump 350km of range back into the battery in 10 minutes, or recharge from 10 to 80 per cent in 20 minutes.The first grade confirmed for Australia is the 50 xDrive, which has dual motor performance to push out 345kW and 645Nm. This enables it to complete the benchmark 0-100km/h sprint in under five seconds.CarsGuide got to test the new iX3 in Europe in 2025, and can confirm it lives up to the hype.It now appears European buyers think the same, with the iX3 sold out until next year on the continent.Mercedes-Benz also revealed its answer to the iX3 at the 2025 Munich motor show, the GLC EV.It isn’t quite as impressive on paper as the iX3, but its 700km-plus range, up to 330kW charging speed and 4.3 second 0-100km/h time make it no EV slacker.Chinese-owned Volvo is preparing to launch its impressive EX60 this year, too.It’ll match the iX3 in several key areas such as driving range and charging speed.