The Chinese car industry has come a long, long way since the first vehicles from Chinese brands started arriving here in 2009, and the stigma that came from these lacklustre offerings is eroding, according to the boss of one of the newest automotive brands on the Australian market.
Those early Chinese-brand models sold in Australia were generally cheap and cheerless, thanks to old technology, dubious safety performance, and poor fit and finish.
While some of those brands like ZX Auto and JMC disappeared quickly, others from this era survived and are now thriving (GWM), or they withdrew and re-entered later to much greater success (Chery) – and it’s these vehicles that have helped turn around sentiment on Chinese-branded vehicles.
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“Only recently they’ve just talked about four Chinese brands who are sitting in the top 10 brands in Australia. I think that answers your question around what people think of incoming Chinese brands,” Deepal Australia general manager Cormac Cafolla told CarExpert.
Mr Cafolla was referring to the VFACTS industry sales report for August, when BYD, GWM, MG and Chery all finished in the top 10.
GWM and MG were in the top 10 last year, and BYD joined them in the first half of this year.
Sales of Chinese-built vehicles – which also includes models from Western brands like BMW and Tesla – rose by 57.5 per cent in 2023 and then by 8.6 per cent in 2024, reaching 210,113 units.
That made China the third largest supplier of new vehicles to Australia, behind only Japan and Thailand.
“The fit, finish and quality of these products far exceeds perhaps the perception of Chinese brands from the past, and the quality they brought in,” added Mr Cafolla, noting the “state-of-the-art” manufacturing facilities now in China.
“I think some Australian buyers need to perhaps experience them to see just how good they are, so perhaps there’s a stigma but I think it’s eroding day by day.
“I think the quality of the brands that are coming in will prove themselves.”
The Australian market has been inundated with new Chinese brands in recent years.
Besides Deepal, others like Chery, Geely, JAC, Leapmotor, Omoda Jaecoo, Xpeng and Zeekr have come here in the past two years alone, with even more Chinese brands waiting in the wings.
Some have been more successful than others. Chery could well become a regular fixture on the top 10 best-selling brands, while Deepal has delivered just 155 vehicles this year – though the caveat there is its sales figures didn’t appear in VFACTS reports until May.
Deepal and its parent company Changan may be unknown brands in Australia, and ‘Made in China’ may still have some negative connotations, but Mr Cafolla says he’s not going to shy away from Deepal’s Chinese heritage.
“It gives strength to the brand to talk about its credibility and its tenure, so we will probably start to talk a little bit more about the Changan relationship and really reinforce the 41 years of manufacturing experience for automotive, the 163 years of company experience within the industrialisation period,” he said.
Founded in 1862 as a military supplier, Changan started producing off-roaders in the 1950s, before it began manufacturing civilian vehicles – Suzuki models built under license – in 1984.
Changan subsequently established joint ventures with Suzuki, Ford and Mazda, though only the latter two survive today.
It also has its namesake vehicle brand plus the standalone Deepal and luxury Avatr marques which produced their first vehicles in 2022.
Despite being one of the largest state-owned automakers in China, Changan never had a presence in Australia until the Deepal electric vehicle (EV) brand launched here late last year with the aid of Subaru distributor Inchcape.
The mid-size S07 electric SUV was followed in recent weeks by the unusual E07 Multitruck borrowed from Changan’s Nevo sub-brand.
While both are sourced from China, not all Australian-market Deepals will come from there.
The upcoming S05 – due in the fourth quarter of 2025 – will be sourced from Changan’s new Thai plant.
Deepal produces only EVs and extended-range electric vehicles (EREVs), and Mr Cafolla says the latter could eventually join EVs in the brand’s local lineup.