|
This page features a snapshot of the Australian automotive industry as at February 2009.
We look at:
|
- the companies that make cars in Australia and the models they make
-
growth in the Australian vehicle market over the last decade
-
the best selling marques
-
growth in the Australian vehicle parc
-
quarterly vehicle sales
|
The Australian vehicle market is supplied by 3 local car manufacturers and by imports from most world light vehicle makers. The number of car makers fell to 3 in March 2008 when Mitsubishi Motors Australia ceased manufacturing the 380 model. Each of the car manufacturers in Australia make a range of vehicle variants essentially based on one platform and with a high degree of commonality across derivatives. The table below sets out key models and body types, but does not specify all variants.
|
Australian Manufacturers and Models
|
| Manufacturer |
Models |
Variants |
Segment/Engines |
| Ford |
Falcon
Territory |
sedan, wagon and utility
AWD/RWD wagon |
Large PMV and PUCC - I6 & V8
Medium SUV - I6 |
| Holden(GM) |
Commodore
Statesman Caprice |
sedan, wagon and utility
sedan |
Large PMV and PUCC - I6 & V8
Upper large PMV - I6 & V8 |
| Toyota |
Camry
Aurion (Camry based) |
sedan
sedan |
Medium PMV - I4
Large PMV - V6 |
 |
The level of production has varied considerably over the decades, with the reduction in import tariffs leading to the removal of smaller cars from local assembly and a focus on the larger cars and their variants shown in the table above.
This focus on large cars has had mixed results for the industry, with the specialisation leading to record exports in 2005 and again in 2008, but exposing the industry to the impact of higher fuel prices since 2005. By the end of 2008 export markets were turning down at the same time that the global financial crisis was increasingly affecting the Australian vehicle market.
In 2008 total vehicle production was 324,722 light vehicles with 159,876 exported.
Both Ford and Holden have committed to assembling small cars again in Australia, with Holden commencing in 2010 and Ford following in 2011 – projected volumes are modest.
All 3 Australian car manufacturers also import CBU vehicles to complete their range, with light and small cars, sports utility vehicles and light commercial vehicles being the predominant imports.
Since the 1970s, the leading pure importers have been the Japanese companies, but during the 1990s penetration of the Australian market by Korean manufacturers was marked.
European imports have tended to concentrate in the prestige and luxury car market, but in recent years there has been a significant resurgence in non-luxury European imports.
Heavy commercial vehicles are imported from most of the major makers and there are 3 assembly plants in Australia which have assembled about 7,000 trucks a year in recent times.
|
|
The Australian vehicle market is now considered a mature market, however over recent decades there have been large fluctuations in vehicle sales.
As the chart below shows, the Australian vehicle market grew almost continuously to a record in 1985, but then fell back because of the weak exchange rate which raised vehicle prices markedly and was followed by the early 1990s recession.
Growth resumed in the mid 1990s and sales reached a new record in 1998. After some stagnation, new growth emerged in 2002 and record sales were achieved in 5 of the last 7 years. The standing record was set in 2007 when the market exceeded 1 million vehicles for the first time – despite a strong start to the year and sales remaining above 1 million, sales fell by 6 percent in 2008.
|
|
Vehicle Sales - Australia
|
Thousand vehicles
[Source: VFACTS vehicle sales data]
There have been many shifts in the types of vehicles sold over the decades and the next chart shows how the growth has been shared since the early 1990s, with:
the increasing range of SUVs taking much of the market growth
relatively stagnant sales for conventional cars and wagons over the last decade
both light and heavy truck sales strengthening considerably.
|
|
Vehicle Sales by Type - Australia
|
Thousand vehicles
[Source: VFACTS vehicle sales data]
|
The strongest selling marques have typically been the companies that have Australian car manufacturing plants – Ford, Holden, Mitsubishi, Nissan and Toyota – but with Nissan ceasing local manufacture of cars in 1992 and Mitsubishi in 2008, along with increasing popularity of smaller cars and SUVs, the ranking of marques has changed somewhat.
Toyota, with its mix of local manufacture, the popular imported Corolla and the wide range of imported light commercials and SUVs has increased its sales in every year since 2002 and was market leader for the 6th year in succession in 2008. Holden and Ford have not fared so well losing ground this decade – the damage to their locally made car sales from high fuel prices has been significant, but unlike Toyota they have not been able to leverage their imports to offset those losses.
Japanese imported brands have been strong in the Australian market for the last 4 decades and their sales have typically strengthened in recent years. As importers Nissan and Mitsubishi retain a strong presence in the market, while Mazda has been the 4th largest volume marque since 2005. Honda, Subaru and Suzuki have also made strong gains.
During the 1990s Hyundai became a strong participant in the Australian market, but sales have been variable, while Kia has consolidated its presence in Australia.
Volkswagen is now the strongest European light vehicle marque in Australia, following rapid growth this decade, but most European marques including Audi, BMW, Mercedes-Benz, Peugeot and Porsche have strengthened their sales in Australia during the last 10 years.
The chart below shows sales by marque at 5 year intervals since 1993, but it does not include most European brands and other lower volume marques.
|
|
Vehicle Sales by Marque - Australia
|
Thousand vehicles
[Source: VFACTS vehicle sales data]
|
Despite being a relatively mature market, the number of vehicles on Australian roads has continued to grow strongly, as the chart below shows. Much of this growth was achieved by extending the life of vehicles - the average age of vehicles on Australian roads rose from 7.1 years in 1979 to 10.7 years in 1998. With the strong growth in sales since, scrappage of older vehicles has lifted again leading to a small reduction in average vehicle age to 9.9 years in March 2008.
|
|
Australian Vehicle Parc
|
Million vehicles
[Source: Australian Bureau of Statistics, Motor Vehicle Census, Australia, catalogue no 9309.0, various years.]
|
The introduction of GST in mid 2000 and subsequent phase in of GST input credits for vehicle purchases distorted vehicle sales patterns in 2000 and 2001, while a weak exchange rate and slower economic growth tended to dampen the annual totals.
In 2002 total sales reached a new record, which was surpassed again in each year to 2005. Particular contributors to this growth were sales of SUVs and light commercials, as well as of light, small and medium segment cars, which were buoyed by price reductions, new models and major facelifts.
Price reductions flowing from the reduction of tariffs on imported cars from 15 percent to 10 percent and the continuing strength of the Australian dollar further stimulated the market in 2005, although high fuel prices began to dampen sales of large cars.
In contrast to 2005, sales in 2006 fell for all types of vehicles except heavy commercials. With petrol prices reaching new heights, smaller cars and SUVs sold well while sales fell again for large cars.
2007 was a record year, with every quarter a record for the respective quarter and the December quarter yielding a big leap in sales compared with the same quarter of 2006.
2008 opened strongly with record sales again for both the March and June quarters, before the reality of the global financial crisis hit Australian buyers. As the chart shows sales then slumped with the September quarter well below the same quarter of 2007 and the December quarter the weakest for that quarter since 2002.
|
|
Quarterly Vehicle Sales
|
Thousand vehicles
[Source: VFACTS vehicle sales data]
|
|