Chinese automaker BYD has indicated that it is open to producing components or potentially complete vehicles in Australia, following recent comments by Prime Minister Anthony Albanese suggesting that technological advances linked to the global growth of electric vehicles (EVs) could provide an opportunity for Australia to revive its automotive manufacturing industry.

Speaking during Australian Made Week last month, Albanese highlighted the possibility that emerging EV technologies could support a return to vehicle manufacturing in Australia following the closure of the country's major automotive production facilities. During an official media event in Melbourne, BYD Vice President Liu Xueliang was asked whether the company had discussed such a possibility with the Australian government.

"Not in the plan yet, maybe our priority will be sales volume, and fulfilling customer needs first, but BYD is very open, so anything is possible," Liu said.

Liu made the comments at Port Melbourne, where the Zhengzhou, one of eight roll-on/roll-off (RORO) vessels operated by BYD, had commenced unloading 4,309 vehicles shipped from Shanghai. He also outlined the company's plans in Australia beyond passenger vehicles.

"You've seen the BYD energy storage system, but in the future, not just passenger vehicles - we're bringing more commercial vehicles, because I see it is a really hard time for a lot of commercial vehicle owners because the diesel price has skyrocketed," Liu said.

BYD has the capability to explore manufacturing opportunities due to its level of vertical integration, a business model in which a company controls a significant portion of its supply chain to manage costs and production. The company was founded in 1995 as a battery manufacturer before entering vehicle production in 2003.

The automaker has expanded its global manufacturing operations. In addition to its operations in China, BYD operates production facilities in Thailand, Brazil and Uzbekistan, as well as a battery plant in California. The company is also planning multiple production facilities in Europe.

In Australia, BYD recently rose to second place in the monthly vehicle sales rankings, behind Toyota.

One factor that could support any future manufacturing-related discussions is the trade relationship between Australia and China. The two countries have had a Free Trade Agreement (FTA) in place since 2015. The agreement came into effect during the period in which Australia's domestic automotive manufacturing industry was winding down, with Ford ending local vehicle production in 2016, followed by Holden and Toyota in 2017.

As a result of the FTA, vehicles imported from China are not subject to tariffs or import duties in Australia. Similar arrangements also apply to vehicles imported from countries such as Japan and Thailand, which have free trade agreements with Australia. Tariffs had previously been used to support Australia's vehicle manufacturing sector before being progressively reduced and replaced by free trade agreements during the 2010s.

The possibility of a return to automotive manufacturing in Australia has also been raised by other Chinese vehicle manufacturers. During the 2026 Beijing Motor Show in May, Chery International President Zhang Guibing commented on the country's former manufacturing base.

"Australia has too many car manufacturers, because based on the market size, I think they should have one factory or some different factories. But I think, today, most of the factories, later they are dismembered. From time to time, our chairman has also asked me to lead the thinking on whether it is possible that we can bring the factories back or something," Zhang said.

The comments from both BYD and Chery come amid discussion about whether the transition towards EVs and related technologies could create new opportunities for automotive manufacturing and component production in Australia.