Dealers Warn of Crisis as Brands Multiply
The Australian Automotive Dealer Association says the new car retail sector has reached a crisis point as brand numbers rise sharply.
Updated on Nov. 10, 2026 in Buying/Selling
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The Australian Automotive Dealer Association has warned the country's new car retail industry is at a crisis point. The September quarter delivered the industry's first negative quarterly profitability result since the global financial crisis.
Why it matters
The association attributes the downturn to unrestricted growth in car brands and intensifying competition in a market of around 1.2 million vehicles. Citroën ceased operating in Australia in November 2025, ending its 101-year presence.
The number of brands grew from 39 in 2021 to 67 in 2026, a 56% increase, while the UK has around 40 brands for more than 2 million vehicles. Most of the growth came from new Chinese brands, and the industry's profitability figures for the period have not been broken down further.
The players
Australian Automotive Dealer Association
The peak industry and advocacy group representing Australian car dealers, which has called for government intervention in the sector.
Citroën
The French carmaker that ended its 101-year continuous presence in Australia in November 2025 after declining sales.
The details
Manufacturers are pushing excess stock onto dealers, and aggressive discounting is eroding margins and devaluing vehicles. Dealers carry the financing costs and risk of unsold vehicles, and the association has proposed a 10-point plan including a pause on new brand entry.
Timeline
November 2025: Citroën ceases operations in Australia due to declining sales.
September quarter 2026: Industry records its first negative quarterly profitability since the global financial crisis.
2027: Several Chinese brands reportedly target Australian launches.
Roadmap
Australia's brand count now sits well above the UK's roughly 40 brands and the US's 40 to 45, despite a far smaller market. The pattern echoes the rapid Chinese brand expansion now reshaping car markets worldwide.
Buyers may find a wider choice of brands but should be cautious about resale values and parts availability for less established makes. Dealer discounting may offer short-term deals, though long-term support for newer brands is uncertain.
The takeaway
Buyers should research a brand's long-term presence and parts supply before committing to a purchase. Checking resale value and service network coverage can help avoid being left with an orphaned vehicle.
Further reading
Explore more on Buying/Selling to see how dealer pricing pressures affect car purchases.
Source note: This article includes information reported by B&T.
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