Extended waiting periods for spare components and reimbursements tied to newer vehicle marques in Australia have sparked demands to revise Australian Consumer Law.

The Buchan Review, commissioned by the Australian Automotive Dealer Association (AADA), has revealed that existing rules fall short amid prolonged delays for parts needed in repairs and routine servicing, especially with certain recent car brands.

The report noted: "Dealers confirmed that buyers encounter major holdups in Australia, particularly for EVs, along with workshop queues that may extend to six weeks solely for diagnosis.

"This stems partly from extended lead times for components, notably those unsuitable for air transport such as batteries. Such delays may entitle a vehicle to a buyback."

The review also determined that buyers might wait as long as 18 months to obtain funds after a vehicle buyback or refund.

It indicated these problems have caused some Australian dealers to decline non-warranty service on vehicles they did not originally supply.

Additionally, the Buchan Review discovered that expenses for extra buyer assistance, including loan cars, frequently go uncovered by vehicle makers, raising costs for dealers to offer these options.

Paired with lengthy waits for replacement parts, the absence of a loan vehicle can leave buyers without transport for prolonged stretches.

Under Australian Consumer Law, dealers bear legal duty to fix defects even while depending on makers for parts supply, technical aid, and warranty claim approvals.

Australia ranks among the globe's most competitive new-vehicle markets, featuring over 70 auto brands vying for yearly sales near 1.2 million units.

This stands against roughly two million annual sales in the UK, about 4.6 million in Japan, 16.3 million in the US, and more than 23.7 million passenger-car sales in China, the largest new-vehicle market worldwide.

Australia has seen an influx of fresh brands in the past year, such as Denza, Geely, IM Motors and GAC, with Forthing set to arrive shortly.

BYD, which sold just 243 fewer vehicles than longtime market leader Toyota in June 2026, set up its Australian subsidiary in 2022 and started local sales the next year.

The Chinese marque lately offered refunds after an admin mistake led 1265 customers to buy BYD vehicles, including the popular Shark 6 dual-cab ute, that they thought were made in 2026 but were actually produced in 2025.

"The arrival of new OEMs, especially Chinese marques and electric vehicles, brings hurdles around consumer law adherence, cultural factors, and technical concerns like battery dependability," the report stated.

"These matters typically surface only after several years of vehicle operation, posing ongoing risks for OEMs."

The conclusions align with remarks from former Toyota Australia vice president of sales, marketing and franchise operations Sean Hanley in comments to CarExpert in 2025.

"My view is that rushing to market carries some risks since buyers continue to prize quality, durability, reliability," Mr Hanley said.

"Some may question this as outdated, yet these remain qualities that customers seek."

Chinese brand Xpeng, which entered Australia in 2024, took over local distribution from independent importer TrueEV on April 1, 2026. The shift left some buyers awaiting cashback offers from the prior distributor during a late-2025 promotion.

Xpeng Australia confirmed this week it will fulfill those pending payments for qualifying customers, even though the incentives came from another distributor now in court proceedings with the firm.

The AADA noted these actions differed from experiences some dealers reported with other makers.

"This review demonstrates that Australia's consumer laws fail to deliver the results consumers and new car dealers merit," AADA chief executive James Voortman said.

"The data in this report shows some international makers either avoid engaging with or inadequately address Australia's consumer law processes.

"Vague terms and unclear steps generate extra business costs, add strain to tribunals and, crucially, leave drivers without vehicle access for long stretches."