The beginning of the flood of cheap Chinese vehicles into Australia

JohnDe said:

I recently posted about a friend having trouble getting panel parts for a Chinese vehicle, and the high cost of the parts for what was a cheap vehicle to purchase new.

We are about to see a flood of Chinese vehicles that we have never heard of, I'm already seeing commercials with unbelievably cheap pricing. Does the old saying "you get what you pay for" still hold up?

The longevity of cheap Chinese vehicles is a complex issue with varying opinions. While some reports highlight quality improvements and even leading positions in certain categories like range-extended vehicles, others cite concerns about reliability and parts availability, particularly with older models and some specific brands. ​

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farmerge said:

I'm pretty sure the adage of "you get what you pay for" is still as good today as it is eons ago.
Buy cheap, get an el cheapo.

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Chery SUV rolls 40m down a cliff face in Adelaide’s south

The owners hope insurance will replace the write-off Chery SUV.

A car has been destroyed after rolling almost 40m over a cliff when the owner started the engine, then ducked back inside to grab something.

The Chery SUV is a write-off after rolling down a driveway, across a road and through a fence before plunging to the beach below at Hallett Cove, south of Adelaide.

Owner Marcus Mitchell was shocked to find his car gone after starting it to go to the shops, before going back inside his house for a few minutes, about 5pm on Tuesday.

“I was in a lot of shock at the time,” he told 7NEWS.

“I was glad that no one was injured or got in the way of the car when it went over the cliff and ,of course, there was nobody in the car thankfully either.”

The Mitchell family hope insurance will replace the Chery SUV after it rolled over a cliff.

Mitchell told 7NEWS the vehicle had experienced battery problems since he bought it, and that was why he left it running when he went back inside.

“I had left it running after a jump start and gone inside to get a last-minute thing for mum before going up to the shop and when I came down the car was gone,” he said.

The task now is removing the Chery SUV from the beach, with a sheer cliff face stretching kilometres either side at Hallett Cove.

The Mitchell family hope their insurance will replace the SUV.

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JohnDe said:

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farmerge said:

Wow this is one extremely "happy' EV owner.

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qldfrog said:

That is the issue with Australia is limited importers/network.
we once brought a Citroen by nostalgia and it was a nightmare.
Entry of chinese vehicles will be similar.
Our MG so far has been flawless.touching wood
And no , price does not make quality.
You can buy overpriced ****.
Look at hilux diesel disasters or the Ranger motor issue.
We just need time to let a proper supply chain setup
The fact a car is 4 software updates behind is an issue with the dealership, not the car.
It will get sorted out, not for all brands, and it could take a while but unless war and politics gets involved, Chinese cars are here to stay, and next Indian ones

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JohnDe said:

That is all true, including "price does not make quality" as proven by the high cost of Chinese parts for their vehicles.

The problem with the Chinese vehicles is that the Australian automotive sector is a relatively small and highly competitive market with excessively high competition, we have more makes and models than the US market. This means that initial imports of a brand are going to be low, which makes it uncompetitive to open a dealership network, which makes it necessary to either give a licence to a multi-dealership business or sublet warranty and service work to a national company like Ultra-Tune.

Once the vehicle manufacturer is selling enough cars to cover costs of opening its own dealership network they will take the licence away from those that have been doing the hard work. BYD are now going through that process, however, I have heard that they may be giving Ultra-tune the licence for service & repairs, until the infrastructure is all in place.

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Hyundai has cast doubt on "how long" Chinese car makers can continue to undercut rivals by thousands of dollars, amid allegations in Europe that the Chinese government is unfairly subsidising the production of vehicles for export markets.

The CEO of the South Korean car brand in Australia, Don Romano, told media there is only "some small advantage" on price for Hyundai to build cars in China for local showrooms.

Yet Hyundai's electric cars are undercut by tens of thousands of dollars by a new wave of Chinese brands, from more established names such as BYD and MG, to newer faces Geely and Leapmotor.


"The real issue when you talk about competitiveness is probably when you look at Chinese EVs, and the question I'd have is how long can they sustain that low price, when we're all using the same materials and the same equipment?" said the Hyundai boss.

"When you look at the same systems that are used to build these cars, the same equipment and the same materials, eventually it comes to an equilibrium, where we're all having it on the same cost factor that we're going to have to all live with.

"And then the pricing really just comes down to what it takes to distribute the cars and market the cars."

Pressed on whether he believes Chinese car brands are selling vehicles at a loss to claim sales, Romano said: "I don't know how they do it, other than I read the same things you do about government intervention and support.

"All I do know is that long-term, this all equals out.

"Whether it's cost of living, whether it's manufacturing, employment costs, eventually it's one big world that we all live in, we're all going to be living in the same economic environment.

"Whatever advantage one country has over another – I've seen this happen in my 40 years, where it used to be cheaper to build in one country than another, and then suddenly it's just as expensive.

"I think that's ultimately going to happen globally, and whether that's in my lifetime or not that I can't answer, but for right now it appears they have the advantage."

The European Union made headlines last year when it applied tariffs of up to 35.3 per cent on Chinese-built electric vehicles sold in the region, after an in-house investigation concluded they were being unfairly subsidised by the Chinese government to make them cheaper to buy in Europe.

said they are "causing a threat of economic injury to EU BEV [battery-electric] vehicle producers."

Tariffs on Chinese-made vehicles ramped up in the US under President Donald Trump, but it was his predecessor, Joe Biden, who quadrupled an import duty on Chinese EVs from 25 per cent to 100 per cent in 2024, citing "unfair trade practices" and "artificially low-priced" exports.

Among Australia's cheapest new electric vehicles is the Chinese-made Geely EX5, an electric mid-size SUV priced from $40,990 plus on-road costs – less than $2000 dearer than a similarly-sized, base-model Hyundai Tucson, despite being battery-electric.

BYD offers the Dolphin electric hatch from $29,990 plus on-road costs, with a longer list of equipment and superior driving range to the smaller $39,000 Hyundai Inster electric city SUV.

"I think there's always going to be someone that's cheaper that can build a car for less money somewhere, and if you look through the rear-view mirror, you're going to see them there," Romano told media.

"I'd prefer to look through the windshield and go forward.

"I also look at some of the best practices by some of the manufacturers out there that have succeeded in building a strong brand and producing really great products at a higher level. That's where we need to look."

Hyundai's sibling brand Kia has embraced Chinese production for Australian showrooms, sourcing the Tesla Model Y-sized EV5 electric SUV from a factory 300km north of Shanghai.

It has helped the brand offer the vehicle from $56,770 before on-road costs, compared to $72,590 plus on-roads for the larger, better-equipped but Korean-built EV6.

Hyundai fields one rival to both vehicles in Australia, the $69,800 Ioniq 5. It sells a vehicle based on the Kia EV5 in China as the Elexio, but it is yet to be confirmed for local showrooms.


"You'd think so, but no," Romano said, when asked if it would be cheaper for Hyundai to build cars in China.

Asked cryptically about a Chinese-made electric SUV akin to the Elexio, he said: "Well, you've got an EV5 out there, right? It's made in China. Is it cheap? No, but does it sell? Yeah.

"It depends on what you're demanding out of the manufacturer, and I think that's what it comes down to.


"And whether that's in Korea or China, again with our agreements and the way we're producing, I think there may be some small advantage, but that could be offset by the distribution channel. It depends on how long it takes to ship.


"[If] we're bringing cars in from India, you can imagine the cost associated with that.

"Then there's other issues, like you find out even at the ports where they actually take them, sometimes there's dust and issues that you didn't have to deal with in Korea or in China. So all these factors come into play."

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JohnDe said:

That is all true, including "price does not make quality" as proven by the high cost of Chinese parts for their vehicles.

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rederob said:

The cost of Chinese car parts pales into insignificance when compared with low volume European imports.

Unfortunately there is a rush to buy PHEVs which have both ICE and electric motors, such as the Sealion 6 and dozens more models. People think they save money on fuel, but forget that servicing costs and parts availability can be very costly.
My BYD Atto 3 is booked in for its 3rd service after almost 3 years of low km (less than 12000km/year) driving and will cost me the grand total of $189. It will be my second paid for service since buying it in October 2022, making my total service costs to date $378... and that service cost is capped until 2028.

As for quality, the MyCar service centre manager I go to said that EVs are the least likely vehicle to come in for repair work outside of mandatory warranty servicing, by a very long margin, and that the vast majority of these EVs are made in China including luxury EVs like the Polestar.

As for servcing delays, they are generally around a week, and delays longer that will generally relate to repair work requiring parts with limited vailability rather than regular servicing. As a complete aside, when I bougth my BYD I was told that the only part that would be delayed if something went wrong was a broken windscreen replacement, there being literally none in Australia at that time.

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rederob said:

My BYD Atto 3 is booked in for its 3rd service after almost 3 years of low km (less than 12000km/year) driving and will cost me the grand total of $189. It will be my second paid for service since buying it in October 2022, making my total service costs to date $378... and that service cost is capped until 2028.

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• GAC Honda models ranking highest in their respective segment are Honda Accord and Honda Odyssey.
• Geely models ranking highest in their respective segment are Geely Binyue and Geely Boyue.
• SAIC Volkswagen models ranking highest in their respective segment areVolkswagen Lamando L and Volkswagen Lavida.

Owner-Reported Problems Point to Lower New-Vehicle Quality as Price Competition Intensifies, J.D. Power Finds

SHANGHAI: 28 Aug. 2025 – Overall new-vehicle quality in China has declined from 2024 by a notable increase of 17 problems per 100 vehicles (PP100) to 229 PP100, according to the J.D. Power 2025 China Initial Quality StudySM (IQS), released today. As price competition increases, the reported quality of internal combustion engine (ICE) vehicles has deteriorated across all three brand segments. Domestic brands and mass market brands have each increased by 18 PP100, while premium brands have risen by 13 PP100, suggesting that cost pressure under fierce competition may be directly impacting quality control and delivery performance.

While internal combustion engine (ICE) vehicles have shown significant improvement in product appeal,[1] quality problems have continued to climb for a second consecutive year, highlighting a widening gap between enhanced product experience and owner-perceived quality.

The study, now in its 26th year, measures initial vehicle quality by examining problems experienced by new-vehicle owners within the first two to six months of ownership. Overall initial quality is determined by problems per 100 vehicles, with a lower number of problems indicating higher quality.

The 2025 study finds that both design-related problems and manufacturer-related problems have risen sharply, up by 9.0 PP100 and 8.8 PP100, respectively, from 2024. The study also reveals that the accelerating push toward intelligent features has introduced new quality risks. As ICE vehicles undergo rapid iterations of intelligent functions, problems involving infotainment systems, seating and driver-assistance technologies are climbing. Among the nine major problem categories measured in the study, all except powertrain have increased in PP100 compared with 2024. Infotainment (+5.2 PP100), seats (+3.3 PP100) and driver assistance (+1.8 PP100) are the most notable. Infotainment problems are highly concentrated, with owners citing poor human vs. machine interface design (voice recognition, touch control logic) and hardware limitations (screen responsiveness, Bluetooth connectivity), which significantly disrupt the continuity of frequently used functions.

“Against the backdrop of multiple competitive pressures in terms of industry technology, configurations and pricing, the IQS performance of traditional fuel-powered vehicles has sustained a pronounced year-over-year decline,” said Elvis Yang, general manager of auto product practice at J.D. Power China. “How to maintain market share and enhance perceived quality amid the new energy transformation is a key issue that ICE vehicle manufacturers must solve in the next few years. At present, the top priority is to optimize the in-vehicle experience of technological configurations, focus on users’ high-frequency scenarios and make efforts to solve issues with strong user perception such as misidentification and slow response. Meanwhile, as the user structure and demand preferences of ICE vehicle owners change, automakers need to re-examine the user experience indicator system and quality risk control strategies and effectively put user-centric quality management at the forefront.”

Following are key findings of the 2025 study:

• Core design and engineering issues escalate: Problems related to functional design usability, NVH (noise, vibration, harshness) engineering and failures of key components have risen significantly. This reflects shortcomings in aligning R&D with user scenarios as well as reduced efficiency in supply chain collaboration. Compared with 2024, the areas with highest PP100 deterioration include uncomfortable seatbelts (+1.4 PP100); excessive fan/blower noise (+1.1 PP100); and voice recognition systems that are difficult to use (+0.9 PP100).
• Hybrid vehicles demonstrate competitive advantage: Both premium and mass market brands continue to expand their hybrid portfolios, with lower prices further accelerating market penetration. In 2025, hybrid models (including hybrid electric vehicles (HEVs) and 48V mild hybrids) account for 18% of fuel vehicle sales, up from 14% in 2024. Premium brands constitute 50% of this volume, while mass market brands account for 47%. At the same time, the average transaction price of hybrids has fallen to RMB 331,000 from RMB 390,000, a 15% year-over-year decline. Compared with conventional gasoline vehicles, hybrids deliver superior initial quality and product design. With consistent reliability and an enhanced user experience, hybrid vehicles are emerging as a differentiated advantage and are poised to become a strategic pathway for fuel vehicles to compete against new energy vehicles.

Study Rankings

Land Rover ranks highest in initial quality among premium brands with 208 PP100, followed by Porsche (213 PP100) and Cadillac (218 PP100).

GAC Honda (208 PP100) ranks highest in initial quality among mass market brands. Dongfeng Honda (209 PP100) ranks second. GAC Toyota and SAIC Volkswagen rank third in a tie, each with 219 PP100.

Chery (220 PP100) ranks highest in initial quality among Chinese domestic brands. GAC Trumpchi (221 PP100) ranks second. CHANGAN and Geely rank third in a tie, each with 222 PP100.

Across 18 segments in the 2025 study, 18 models receive awards.

• GAC Honda models ranking highest in their respective segment are Honda Accord and Honda Odyssey.
• Geely models ranking highest in their respective segment are Geely Binyue and Geely Boyue.
• SAIC Volkswagen models ranking highest in their respective segment areVolkswagen Lamando L and Volkswagen Lavida.

Other models ranking highest in their respective segment are Cadillac XT5; Changan CS75; Chery Tiggo 9; Land Rover Range Rover; Lexus NX; Mercedes-Benz A-Class; MG 5; Toyota Crown Kluger; Toyota Frontlander; Volkswagen Bora; Volvo S90; and Wuling Jiachen.

The China Initial Quality Study (IQS) measures new-vehicle quality by examining problems in two segments: design-related problems and defects/ malfunctions. Specific diagnostic questions include 218 problem symptoms across nine categories: features/ controls/ displays; exterior; interior; infotainment system; seats; driving experience; driving assistance; powertrain; and climate.

The 2025 study is based on responses from 19,913 owners who purchased their vehicle between July 2024 and March 2025. The study includes 148 models and 39 different brands; among them, 143 models and 38 brands achieved sufficient samples. The study was fielded from January through May 2025 in 81 major cities across China.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on J.D. Power WeChat and Weibo.

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JohnDe said:

Across 18 segments in the 2025 study, 18 models receive awards.

• GAC Honda models ranking highest in their respective segment are Honda Accord and Honda Odyssey.
• Geely models ranking highest in their respective segment are Geely Binyue and Geely Boyue.
• SAIC Volkswagen models ranking highest in their respective segment areVolkswagen Lamando L and Volkswagen Lavida.

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JohnDe said:

An example for an LDV D90

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