Visitors tour a car show in Shanghai, China, May 1, 2025. (Photo: VCG)

China was the leading source of new vehicles sold in Australia for the first time in February, according to official data, ending the Japanese automotive industry's 28-year domination of the market.

The Federal Chamber of Automotive Industries (FCAI) said that 22,362 new vehicles sourced from China were sold nationally in February, exceeding 21,671 from Japan and 19,493 from Thailand.

Japan had been Australia's leading source of vehicles every month since 1998, according to the FCAI.

It said that Australia's new vehicle market recorded 90,712 sales in February, giving Chinese manufacturers a market share of 24.6 percent.

Of the 10 new automotive brands that have entered the Australian market since 2020, the FCAI said nine are made in China.

"After 28 years, Japan has been overtaken by China as the largest source of vehicles for the Australian market in a single month," FCAI Chief Executive Officer Tony Weber said in a statement.

"The Australian market is one of the most open and competitive in the world. New brands can enter, establish dealer networks and compete on price, technology and design. Consumers are the beneficiaries of that competition."

BYD was the largest Chinese brand in February, recording 5,323 new vehicle sales.

Through the first two months of 2026, BYD has sold 10,324 new vehicles in Australia compared to 3,956 new vehicles in the same period in 2025.

The FCAI noted that battery electric vehicles accounted for a record-high 11.8 percent of all new vehicle sales nationally in February.