In the 12 months to September, BYD imported almost 51,000 electric vehicles into Australia but sold fewer than 38,000. This sizeable difference contrasts with other brands that manage tighter inventory levels.
Australia’s ongoing shift to electric vehicles is being fuelled by both consumer interest and government policy. While EV sales are climbing, challenges such as range anxiety and inadequate infrastructure continue to hinder broader adoption. The Albanese government has rolled out new standards designed to support low-emission vehicle imports and help move the country towards its target of net-zero emissions by 2050. These standards reward manufacturers for bringing in low-emission vehicles and penalise them when emissions exceed set limits.
Under the policy, companies like BYD can earn emissions credits for each compliant vehicle imported. These credits can then be sold to companies with higher-polluting vehicles, offering financial benefits even when cars remain unsold. For example, one of BYD’s electric models can generate up to $7050 in tradable credits based on current emissions data. As these credits are awarded upon import rather than sale, other carmakers and dealerships have raised concerns about fairness. They argue that credits should be issued when vehicles are sold, not simply stored.
This discrepancy has led dealer groups to push for a change in how emissions credits are allocated. They are urging the government to move the accounting point from import to sale to prevent oversupply and potential financial losses. Although the government acknowledges the issue, it has said that shifting to a sales-based model would be challenging under existing legislation. A regulatory review scheduled for next year may address the matter.
For now, new and often state-backed Chinese EV brands are expected to continue entering the market. This intensifies competitive pressure at a time when EVs account for only 8.1% of total vehicle sales annually.
The surge in imports without matching demand could influence the evolution of low-emission transport in Australia. However, it also risks straining dealerships and clouding the objectives of a policy that intends to cut emissions by increasing EV uptake among consumers.
