Fiat Halts Passenger Car Imports to Australia as Chinese EV Sales Rise

Fiat will stop importing passenger cars to Australia after current stock is sold, the company said Tuesday. The Italian brand, owned by Stellantis, will keep only the Ducato and Scudo vans on sale locally. The move follows a 30 percent drop in Fiat passenger car sales to 144 units in the six months to June. Stellantis said it would continue to assess demand and future opportunities in Australia.

More than 20 new vehicle brands have entered Australia over the past decade, most from China. XPeng announced plans Tuesday to launch five new models in the country within six months. Mike Costello, an industry analyst at Cox Automotive, said the overall market has not grown enough to support the increased number of competitors.

He noted that brands already face a marketplace that has expanded by about a third.

Electric vehicles accounted for about one in four new car sales in Australia last month. When plug-in hybrids are included, the share reaches nearly half. BYD has nearly overtaken Toyota as Australia's top-selling brand. Chinese models often carry lower prices, newer technology, and shorter delivery times than some established competitors.

Riz Akhtar, founder of electric vehicle consultancy Carloop, said brands that have operated in Australia for decades now face pressure. He cited Citroen's earlier exit and noted that many legacy manufacturers lack products matching current buyer preferences.

A Stellantis spokesperson said the company remains focused on meeting customer expectations and will share more details on Fiat and Abarth plans when appropriate.