Chinese car buyers are shifting toward larger and heavier electric vehicles, a move that is driving up expenses for road upkeep while adding to a funding shortfall estimated at as much as 61.7 billion dollars for repairs and maintenance.

According to data from the China Passenger Car Association, six out of ten new models introduced in the first half of 2026 exceeded five metres in length, similar to the dimensions of a Toyota LandCruiser 300 Series.

The share of new models under 4.5 metres, comparable to a Subaru Crosstrek, dropped sharply from 13 per cent in the first half of 2025 to just two per cent in 2026.

This shift toward bigger sizes has occurred as electric vehicles captured 35.4 per cent of the market in China, up from 30.1 per cent in the same period of 2025.

Declining income from fuel taxes has played a key role in creating the road funding gap, echoing discussions about potential road-user fees in Australia.

Electric vehicle buyers in China also benefit from much lower vehicle purchase taxes compared with owners of petrol and diesel models.

As vehicles grow in size and mass while generating reduced tax revenue, the funding shortfall has reached around 50 per cent and has likely grown beyond the 300 billion yuan gap projected by the transport ministry in 2023.

In response, authorities have reduced EV purchase incentives by cutting the tax discount in half to five per cent and limiting the benefit to 15,000 yuan.

Annual tax exemptions for plug-in hybrids and extended-range models have also been ended, as these powertrains are seen as contributing to the move toward larger and heavier vehicles.

Examples include the Denza B8 plug-in hybrid off-road SUV, which is 5195 millimetres long and weighs 3290 kilograms, and the GWM Tank 500 plug-in hybrid SUV at 5078 millimetres long and 2820 kilograms.

Chinese dual-cab utes sold locally, such as the BYD Shark 6, LDV Terron 9, MG U9 and JAC Hunter, all exceed five metres in length despite being lighter than large sport utility vehicles.

New energy-consumption rules that penalise heavier vehicles have been introduced to address what state media described as a risky weight competition.

Australia has likewise experienced strong growth in electric vehicle sales, reaching 23.3 per cent in June 2026, with the Tesla Model Y as the top-selling model overall.

Debates continue over road-user charges for electric vehicles in Australia.

A proposed federal road-user charge for electric vehicles was deferred following high fuel prices in March 2026, due to worries it could slow adoption needed for the net-zero 2050 target.

The charge was intended to offset falling fuel excise revenue as internal combustion engine sales decline, similar to issues faced in China.

Local councils in Australia also confront a road maintenance funding gap estimated at around one billion dollars for 2024-25.