The car brands disappearing from Aussie suburbs amid dealership 'bloodbath' - with peak body estimating half of all new cars will be made in China within a decade

By ASHLEY NICKEL, NEWS REPORTER, AUSTRALIA Published: 16:00, 28 July 2026 | Updated: 16:06, 28 July 2026 Dealerships around Australia are increasingly swapping trusted European and Japanese car brands for Chinese models as the market shifts to the cheaper imports. The Australian Automotive Dealer Association (AADA) has now estimated more than half of all new vehicles sold in Australia will be from Chinese manufacturers by 2035. Electric vehicles made up 35.8 per cent of sales in June, spurred on by fuel price uncertainty amid the conflict in the Middle East.  AADA chief executive James Voortman last week said 'the combination of China's rise and the intense competition it brings along with the challenges in complying with new emissions standards is changing the fabric of this industry'. 'This year 67 car brands are aggressively competing for market share, and we have been saying for some time that not all of these brands can survive.' Citroen pulled out of the Australia in 2024 after a century in the market, followed by Fiat passenger vehicles in July this year, while Peugeot will downscale its business.   A prominent owner of Volkswagen, Mitsubishi and LDV franchises in northeast Victoria last week confirmed it would close those three dealerships. It blamed the government's New Vehicle Efficiency Standard, which effectively fines companies that release cars with high emissions, for the lull in business. Three Volkswagen (above), Mitsubishi and LDV franchises in northeast Victoria are set to close The family behind the three franchises have registered a new company, likely to sell Chinese-made MG cars (pictured is the MG HS) 'Due to Government legislative changes affecting the motor industry that are beyond our control, the Jacob Group of Companies has made the difficult decision to surrender the Volkswagen franchise,' the owner wrote online. 'After more than 25 years of proudly serving our community as Australia's first standalone Volkswagen dealership, we would like to sincerely thank our customers, staff and community for your loyalty, trust and support throughout our journey.' The Jacob Group, the family business behind the three closing dealerships, registered a new business under the name Wangaratta MG on July 7, the Herald Sun reported. Victorian Automobile Chamber of Commerce chief executive Peter Jones said dealerships, like those owned by Jacob Group, were likely to start changing manufacturers to match market demand. 'Dealers need to make money and so they're swapping out profitable from non-profitable,' Mr Jones said. The Jacob Group are far from the only dealerships trading European cars for Chinese vehicles. Essendon Volkswagen, on the outskirts of Melbourne, has similarly swapped its range of Volkswagens for MGs. Now the only Volkswagens on-site are those utilising the dealership's servicing and parts operation. Essendon Volkswagen (above) has similarly abandoned its Volkswagen sales in favour of more popular Chinese An investigation by the outlet using Google Street View showed a similar story at many dealerships, with several 'Ford' and 'Nissan' sellers now displaying cars from Chery, Omoda and Jaecoo - all from China.   Mitsubishi Motors Australia's former chief executive Shaun Westcott predicted a 'bloodbath' as Australia's automotive industry adjusted to Chinese cars entering the market back in 2024. 'Our country doesn't have an industry to protect, everyone thinks this is the place to be, we don't have any tariffs, we don't have any barriers,' he said. 'We're going to go into a period of excess supply and not everybody will survive that, and there's going to be a bit of a bloodbath.' Mr Westcott's prediction proved true with the AADA now expecting the number of car brands in Australia to grow from 67 to 75 by 2031. Both Volkswagen and Mitsubishi were once best sellers in Australia but sales have slumped in recent years. Volkswagen's Australian sales were down 20.6 per cent in 2025 while Mitsubishi's dropped by 17.9 per cent. Each manufacturer sold 28,970 and 61,198 vehicles respectively. Sales for LDV peaked in 2023 with 21,298 vehicles sold that year. It has sold just 6,409 so far this year.