Chinese Automakers Aim to Disrupt Australian Luxury Car Market
Chinese car brands are setting their sights on the Australian luxury car market, intending to compete with established names such as Audi, BMW, Lexus, and Mercedes-Benz. After years of offering affordable vehicles, these manufacturers are now looking to establish a presence in the high-end segment.
MG has confirmed its plans to launch its luxury sub-brand, IM, in Australia. The brand will begin by offering the electric IM5 sedan and the related IM6 SUV. This move follows the announcement that BYD, another major Chinese manufacturer, will introduce its luxury spin-off, Denza, bypassing its local distributor.
Denza plans to launch its U8 plug-in hybrid large 4WD in Australia as its first model. This model is designed to compete with the Lexus LX and Mercedes GLS. The U8 is 5.3 meters long and is powered by a petrol-electric powertrain generating 880kW and 1250Nm. It also boasts an electric-only driving range of 124km. In China, the U8 is priced at approximately $250,000.
Jez Spinks, Editor
Another potential Denza model for the Australian market is the B5 plug-in hybrid, which shares components with the BYD Shark 6 ute. Moreover, MG has chosen the name ‘IM Presented by MG Motor’ which retains the MG association, rather than launching IM as a completely separate brand. ‘IM’ stands for ‘Intelligence in Motion,’ and the brand, from the parent company SAIC, has Alibaba as a notable shareholder.
While pricing for the IM models is yet to be confirmed, it is expected that they will be priced similarly to comparable Tesla models, such as the Model 3 sedan and Model Y SUV. Another premium brand from China, Zeekr, owned by Geely, entered the Australian market in late 2024 with the X compact electric crossover, which is related to the Volvo EX30.
Many more Chinese brands are planning to enter the Australian market, even though most of them will be aiming for the mainstream segment. These brands will emphasize value, typically providing more features and performance than equivalent models from established European and Japanese luxury brands. This strategy is expected to put pressure on current luxury car market leaders.
