Aussie car boss warns of industry ‘collapse’
Aussie car boss warns of industry ‘collapse’
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Aussie car boss warns of industry ‘collapse’

Stephanie Coombes 🕒︎ 2025-11-10

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Aussie car boss warns of industry ‘collapse’

Deals of the Week 6:59AMMonday, November 10th, 2025 In the know quiz Set your local weather Breaking News Courts & Law Courts & Law Courts & Law Courts & Law South Australia Western Australia Northern Territory Breaking News North America US Politics South America Middle East UK Politics Health Problems Mental Health Inspiration Weight Loss School Life Restaurants & Bars Food Warnings Relationships The Sealed Section Family & Friends Fashion Shows Fashion Trends Face & Body Cosmetic Surgery True Stories Lifestyle Videos Travel Ideas Short Breaks Food & Drinks Destinations North America New Zealand Middle East Central America South America Travel Advice Tips & Tricks Accommodation Australian Holidays Northern Territory South Australia Western Australia Travel Videos Entertainment Celebrity Life Hook Ups & Break ups Celebrity Photos Celebrity Kids Celebrity Deaths Celebrity Style What To Watch Morning Shows Current Affairs Upcoming Movies Movies Reviews Music Festivals Books & Magazines Golden Globes Entertainment Videos Social Media Mobile Phones Home Entertainment Archaeology Environment Climate Change Sustainability Natural Wonders Motoring News On the Road Technology Videos Cost of Living How to Save Salary Secrets Personal Finance Superannuation Australian Culture Power & Influence Inside Parliament Gig Economy Breaking News Manufacturing Other Industries Australian Economy World Economy Interest Rates Federal Budget Australian Markets World Markets Australian Dollar Cryptocurrency Real Estate Sydney & NSW Melbourne & VIC Adelaide & SA Cricket Live Scores V8 Supercars Sports Life American Sports Paralympics Horse Racing Expert Opinion More Sports Sport Videos Sales & Deals Home & Appliances Health & Wellbeing Motoring News ‘Reckoning’: Aussie car boss warns of industry ‘collapse’ One of Australia’s leading automotive figures says the industry will face a ‘reckoning’ with a wave of ‘consolidation and collapse’ coming for major brands. Stephanie Coombes November 10, 2025 - 10:29AMMotoring Copied URL to clipboard Honda Australia’s chief executive Jay Joseph has warned that not all car makers competing in Australia will survive, and predicts a wave of ‘consolidation and collapse’ is coming for Chinese brands. “It doesn’t seem realistic that all the brands that are competing in Australia today will remain viable,” Joseph said. “There are brands that are [selling] less than one per cent [of cars sold in Australia]. “They’re not selling enough vehicles to sustain a dealer network that would be able to service vehicles in a profitable way.” MORE: Sad origin of ‘big ute’ revolution There are stormy waters ahead for car companies in Australia, warns Honda Australia CEO Jay Joseph. Picture: Supplied Joseph, who had a 27-year tenure at American Honda Motor Co before his appointment as CEO, says Australia is “the most competitive and fragmented auto market in the world” with some European and Asian car makers struggling to remain profitable. He also accused some automakers of ‘designing by superstition’. “There are 70 brands in this country, vying for 1.2 million new car sales per year. Compared to all of my prior history in the United States, where there’s 42 brands competing for 16 million new car sales. That’s a much easier pie to slice.” MORE: Speed icon does the unthinkable Copied URL to clipboard CHINA CAR BRANDS IN TROUBLE Joseph believes that Chinese car brands will also face a turbulent decade after their meteoric rise on the global market. “It seems unrealistic that after a period of rapid growth, there won’t be consolidation and collapse, and some of those companies will not survive.” In Australia, China is now the second-largest source of new vehicles behind Japan, with brands like BYD, GWM and MG gaining popularity. “Credit where it’s due, the Chinese car makers have been on the steepest learning curve in the history of the auto industry. They have gone from zero to competitive, faster than any other nation in the history of the auto industry.” Honda is hoping for big things for its coming Super-ONE in Australia. Picture: Supplied But Joseph argued that some newer entrants are still “designing by superstition” rather than through engineering experience gained over time. “One of our advantages at Honda is that we’ve documented everything that ever went wrong with any one of our products,” he said. “If you design from a philosophy of understanding how to prevent something from failing, that’s very different than just copying a design and hoping it works.” Joseph said quality differences may be less pronounced in the electric era, where powertrains have fewer moving parts and more standardised components, but manufacturing discipline remains an important part of the process. Chinese brand BYD has come from almost nowhere to gain a large foothold in Australia Picture: Supplied “It matters how you attach the inner door panel,” he said. “It matters how you install the glass. The sequence of doing things affects whether your headliners fall down after five years of UV abuse, or just normal wear and tear.” More Coverage Aussies want these ‘non-woke’ cars: Toyota David McCowen Car giant ditches ‘nightmare’ Aus driving tech Looking ahead, Joseph predicts industry-wide upheaval in the next decade. “The auto industry has these reckonings, especially in times of financial crisis, which seem to happen about once every 10 or 12 years,” he said. “We’ll see who’s still standing at the end.” Join the conversation Add your comment to this story To join the conversation, please log in. Don't have an account? Join the conversation, you are commenting as More related stories On the Road Huge change for Australia’s favourite car Australia’s favourite car is undergoing some huge changes that drivers have waited almost a decade for. Motoring News China’s ‘perverse dumping’ in Aus ‘ignored’ The Aussie government is being accused of ignoring potential national security and environment risks posed by China’s ‘perverse dumping’ Down Under. On the Road Collapse to domination: Ford’s Aussie revival Ford’s Australian facility appeared lost when production of the iconic Falcon shut down. Now, it is a global powerhouse servicing more than 180 countries. Registration In The Know Quiz Newsletters Competitions Welcome to news.com.au Code of Conduct Help and Support General Feedback Advertise with us Standards of Practice Licensing & Reprints Our News Network The Daily Telegraph The Courier Mail Our Partners realestate.com.au CODE Sports A NOTE ABOUT RELEVANT ADVERTISING: We collect information about the content (including ads) you use across this site and use it to make both advertising and content more relevant to you on our network and other sites. 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