Chinese automaker GAC is launching in Australia this month with a surprising model lineup, including a plug-in hybrid people mover alongside more conventional SUVs. This move challenges the Australian market’s preference for SUVs while tapping into a niche segment dominated by the Kia Carnival.
The People Mover Paradox
People movers, or MPVs, remain popular in markets like China and Japan, often used for executive transport. However, in Australia, they’re largely seen as family vehicles. Despite this perception, the people mover segment has seen modest growth since 2020, reaching 13,654 sales last year—less than mainstream mid-size cars but more than sports cars.
GAC’s M8 plug-in hybrid enters a market where the Kia Carnival holds a staggering 74% share. While competitors like the LDV MIFA and Zeekr 009 exist, they haven’t made significant inroads. GAC hopes to disrupt this by offering a competitively priced, plug-in hybrid option—a first for the Australian segment.
China’s Success, Australia’s Skepticism
The M8 has been a best-seller in China, outselling rivals like the Honda Odyssey by a wide margin. However, the Australian market is different. The Carnival has long dominated, and previous challengers have struggled. GAC acknowledges this, but believes its plug-in hybrid powertrain and pricing could attract a broader customer base.
Shifting Strategy
GAC’s decision to prioritize a people mover over more popular passenger cars is unusual. The company admits that passenger car sales are declining in Australia, while SUV demand remains strong. However, GAC insists that it will bring in more models in the future if there is sufficient customer demand.
Wider Model Range
GAC offers a wide range of vehicles under its GAC Auto, Aion, and Hyptec brands. The company plans to launch eight models in Australia by 2027, including electric hatchbacks, sedans, and even a supercar. Engineering for right-hand drive isn’t an issue, as GAC already has global platforms that support both configurations.
Market Position
GAC was the 11th best-selling auto group in China last year, with its Aion brand finishing as the 20th best-selling brand overall. The company is betting that its value proposition and expanding model range will resonate with Australian buyers.
Ultimately, GAC’s success in Australia will depend on its ability to overcome the market’s SUV obsession and convince buyers that a plug-in hybrid people mover is a viable alternative.
