Blog & News

Car dealers want a pause on new brands entering Australia, warning of resale and repair risks

· 2 min read

Car dealership building and forecourt in Glen Innes, New South Wales

The Australian Automotive Dealer Association (AADA), which represents new car dealers, has called for a pause on more car brands entering the Australian market. It warns that the rapid growth in brands is hurting dealers and could leave buyers facing lower resale values, slower parts supply and orphaned cars. This is a request from an industry group. No government has agreed to pause new brands, and brands that meet Australian safety and design rules can still enter the market.

What the AADA said

In a media release on 5 November 2026, the AADA said Australia’s new car retail industry “has reached a crisis point”.

AADA chief executive James Voortman said: “There are simply too many manufacturers operating in this market and we need a pause on further car brands entering this market.”

The association says the number of brands in Australia has grown from 39 in 2021 to 67 in 2026. It is calling for “urgent action from governments, vehicle manufacturers and suppliers”.

Voortman said the September quarter delivered the industry’s first negative quarterly profitability result since the global financial crisis.

GWM ORA 5 electric SUV, illustrative Australian-market product image

1 / 4

Illustrative model choice in the Australian market; no position on the AADA request is implied.

A pause, not a ban

Speaking on ABC Radio Perth, Voortman said the association was not asking for a permanent halt. “We’re just calling for a pause until we’ve put in place the required policies and obligations to allow brands to come into this market in a gradual way,” he said.

CarExpert reports that the pause is one of 10 recommendations from the AADA. Others include faster unfair trading protections and changes to how car makers set sales targets for dealers.

What the AADA says it means for buyers

The AADA argues that unrestricted brand growth is causing three problems for consumers:

  • Faster depreciation. It says heavy discounting to clear stock “devalues vehicles”.

  • Parts and repair delays. It warns of “a lag in parts supply with longer repair times”.

  • Orphaned vehicles. It says owners can be left without support “as brands disappear”.

These are the dealer body’s claims, and its release does not put figures on resale or repair times. The risks are worth checking for any car, whichever brand you buy.

How to protect yourself when buying a newer brand

  • Ask the dealer how parts are supplied in Australia and how long common repairs take.

  • Check how many service centres the brand has near you, not just where you buy.

  • Look at used listings for the same model to see how prices are holding up.

  • Read the warranty terms, including what happens if the importer or dealer changes.

Buying from a business also gives you rights under the Australian Consumer Law, including remedies for faults, regardless of the brand.

Will anything change

Not yet. The AADA is lobbying governments, car makers and suppliers, and any change to how new brands enter Australia would need government action. For now, new brands keep arriving. Recent examples include Chery’s Exlantix premium brand and Changan’s Nevo brand.

Tags

Category:Automotive News in Australia

About the author

Waqas Afzal

By Waqas Afzal

Founder & Senior Automotive Editor

View profile

Founder and Senior Automotive Editor at AussieMotor, covering automotive news, new car launches, vehicle pricing, buying guides, reviews, and market insights. I oversee editorial quality, fact-checking, SEO, and content strategy, with a focus on providing accurate, practical information that helps car buyers make better informed decisions.

222 articles · Joined 2026

Editorial Policy · Corrections Policy

View All →
Featured image for BYD Shark 6 Recall Australia Check Your VIN and Get the Free Repair

BYD Shark 6 Recall Australia Check Your VIN and Get the Free Repair

Waqas Afzal4 Min Read

BYD has recalled 32,009 Shark 6 utes in Australia because the spare wheel support cable could wear and break, allowing the wheel to detach while driving. Owners should check their VIN, contact a BYD dealer and arrange the free repair. This guide explains the affected production ranges, interim precautions and what to confirm before the workshop visit.