Fiat’s decision to stop selling new cars in Australia could be a sign of tougher times ahead for some international car brands.

The Italian brand has reportedly struggled to compete in Australia’s increasingly crowded and highly competitive new-car market.

Experts warn that smaller carmakers may face growing pressure as Chinese brands expand rapidly and consumers are offered more affordable electric and hybrid vehicles.

The shift in Australia’s automotive market is forcing manufacturers to rethink their strategies and focus on models that better match local demand.

Industry competition is expected to intensify as electric vehicles and new international brands continue to gain ground.

Fiat’s departure could therefore be just the beginning, with other car brands potentially facing difficult decisions about their future in Australia.