But the report reveals China’s growth is not confined to BEVs, but exports of internal combustion engine (ICE) and diesel vehicles, especially light commercial vehicles and SUVs, have also risen. The report states China’s rapid rise is a combination of several factors, including lower production cost, rising consumer demand for low-emission vehicles, and the Federal Government’s New Vehicle Efficiency Standard (NVES), which came into effect on the 1st of July. MORE: ‘Jet on wheels’: Luxury van’s insane cost The policy penalises high-emission vehicles and incentivises clear alternatives, and is expected to reshape the types of cars entering the Australian market. While most automotive exporting countries have seen rising manufacturing costs since 2017, vehicle prices from China have remained flat or declined. The Chinese government has also invested heavily in battery and EV technology, which has placed China at the forefront of manufacturing. Australia’s appetite for Chinese brands is also growing, with emerging automakers like BYD, Zeekr, XPeng, GWM, and Chery gaining market share quickly. The AADA report also highlights China’s rise as part of a broader transformation in Australia’s car market, driven by the end of local manufacturing, changing consumer preferences and global trade trends. Previous import booms were led by Japan in the 1990s, South Korea in the early 2000s and Thailand in the late 2000s. But China’s current growth is expected to outpace them all.