Industry Seeks Ban on New Car Brands

The Australian Automotive Dealer Association wants a temporary halt on new brands entering the market as the industry records its first negative profit result since the global financial crisis.

Updated on Nov. 5, 2026 in Buying/Selling

Isometric editorial illustration of identical blank car silhouettes on a concrete port beside stacked shipping containers, illustrating the influx of new car brands into Australia. — The Australian Automotive Dealer Association is calling for a temporary ban on new car brands after the industry's first negative profit result since the global financial crisis. AI Illustration. Upload story photo >

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The Australian Automotive Dealer Association is calling for a temporary ban on new car brands entering Australia. The September quarter delivered the industry's first negative profitability result since the global financial crisis.

Why it matters

The number of car brands in Australia has grown rapidly, which the association says has created unsustainable commercial conditions for dealers. Intense competition and rising business costs are squeezing the sector across the country.

Australia records 54 car brands per one million cars sold, compared with 19.8 in the United Kingdom, 18.9 in Canada and 16.4 in Germany. Over 103,000 new vehicles were sold in October, with China supplying 36 per cent of new car sales and Japan 23 per cent.

The players

Australian Automotive Dealer Association

The national body representing car dealers across Australia, which has called for a temporary ban on new brands entering the market.

The details

Six new brands, including Avatr, iCaur, Freelander, Exlantix, Luxeed and Hongqi, are confirmed to enter Australia next year. The association argues that a flood of new brands can lead to rapid depreciation of vehicles, parts supply lags, longer repair times and orphaned vehicles if companies leave the country.

2021: Australia had 39 car brands.
September quarter: The industry recorded its first negative profitability result since the global financial crisis.
October: Over 103,000 new vehicles were sold in Australia.
Next year: Six new car brands are confirmed to enter Australia.

Roadmap

The industry's first negative profit result since the global financial crisis marks a sharp turn for Australian dealers. Australia's brand density of 54 per one million cars sold far exceeds that of the United Kingdom, Canada and Germany, placing the market under pressure from rapid expansion.

Buyers of vehicles from newly arriving brands may face rapid depreciation, delayed parts supply and longer repair times if a company later withdraws from the market. Shoppers should weigh the long-term availability of parts and servicing before buying from a brand with a limited local footprint.

The takeaway

Before buying from a newer brand, check how well it is supported locally for parts and servicing. Careful research now can help avoid costly repairs and resale losses later.