Toyota's decades-long reign as Australia's favourite carmaker is under threat, and it is not a feeling the global giant is used to. Panic can sound like a maelstrom of desperate voices competing with sirens, stampeding footsteps and the rhythmic thrum of helicopters overhead. Or the simple chime of an email notification.
This week, it was a message timed to coincide with BYD hosting reporters on an enormous ship that has the car industry rattled. Capital letters shouted “TOYOTA SECURES ADDITIONAL PRODUCTION”. But the soft “ding” accompanying their note did not put a dent in BYD’s moment.
The BYD Shark 6 is a popular pick. Picture: Thomas Wielecki. If anything, Toyota’s carefully timed notice reinforced the enormous impact of the BYD Zhengzhou, a ship sent to Australia with nearly 5000 hybrid and electric cars on board as part of a response to this year’s fuel supply crisis.
Chinese brands accelerate
BYD’s enormous vessel might have sailed all the way to Melbourne powered by the hype of a brand that has overtaken all but Toyota on the monthly sales charts. It may only be a matter of time before it reaches number one.
Industry sales figures show BYD’s monthly sales for May rose from 3225 last year to 8211 this year. Deliveries for the first five months of the year more than doubled from 15,199 in 2025 to 33,454 in 2026. Toyota remains on top, but the manufacturer is in decline. Its sales dropped from 23,576 last year to 16,342 this year, and deliveries for the year to date have dropped from 100,753 to 76,017.
Legacy brands struggle
The story is repeated across the car industry. Legacy brands struggle to hold ground while emerging marques reach new heights. Brands like GWM, Chery and MG are accelerating. Beyond them, Geely (2636) outsold Subaru (2178), Omoda Jaecoo (2570) was ahead of Nissan (1780) and Zeekr (1043) beat Volvo (608) as new names found recognition last month.
All those brands offer something new for Australian motorists. For years, insiders at rival brands have quietly confided that BYD is the one brand they are truly worried about. Toyota’s sales are falling.
BYD has a broad portfolio of vehicles spanning from hatchbacks to family SUVs, utes, prestige machines and even a supercar that is faster than any Ferrari in its YangWang U9 Xtreme. It has the capacity to build and distribute cars at enormous scale. It has the backing of an enormous dealer group here in Eagers Automotive. It has overtaken Ford, Mazda, Hyundai and Kia to become the second best-selling brand in the country for the last two months, and that is unlikely to change as BYD ramps up supply with a goal of surpassing Toyota as the top automotive brand in Australia.
BYD aims for every Australian family
BYD vice president Liu Xueliang says the company strives to be “an Australian brand”, one that touches “every family of Australia”. Jaecoo is another Chinese brand making a big impression. While established brands such as Ford have abandoned buyers on a budget, BYD’s range starts from $27,000 drive-away, and there are four sub-$50,000 cars in its lineup. Its plug-in hybrid and electric cars are tailor-made for increasingly strict environmental regulations that fine car makers for selling cars that exceed government emissions targets – and threaten the viability of brands that fail to adapt.
It will be a little while before Toyota is dethroned as the number one brand for a full year. Toyota reckons it will sell 220,000 cars this year – BYD will do well to reach half that tally. But the gap is closing. And the industry has well and truly sounded its alarm.
