On this page we give you a snapshot of the Australian automotive industry, looking 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 Companies 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 (from late 2006) sedan sedan Medium PMV - I4 Large PMV - V6 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. Market Growth The Australian vehicle market is considered a mature market, however over recent decades there have been large fluctuations in vehicle sales, with the major influences being: car prices, which rose markedly as the AUD weakened in the mid 1980s and then stabilised in the 1990s with lower inflation and reduced import duties on vehicles the economic slowdown at the beginning of the 1990s, the subsequent economic recovery and then sustained growth lower car prices during this decade because of a stronger exchange rate and reduced tariffs. As the chart below shows, the Australian vehicle market recovered in the first half of the 1990s and reached a record in 1998, which was followed by a gradual decline in sales before the market reached new records in each year from 2002 to 2005. After a slight fall in 2006 another record was set in 2007 when the market exceeded 1 million vehicles for the first time. Sports utility vehicle sales have grown strongly since the mid 1990s and, as for all other vehicle types, sales were a record in 2007. Vehicle Sales - Australia Thousand vehicles [Source: VFACTS vehicle sales data] Leading Marques The strongest selling marques have typically been the companies that have Australian car manufacturing plants - Ford, Holden, Mitsubishi and Toyota - over the last 15 years. Mitsubishi sales fell away as demand for the Australian made Magna and its successor 380 was eroded, sales by some importers rose above Mitsubishi and in March 2008 local manufacture by the company ceased. On the other hand Toyota sales have about doubled over that time while Holden and Ford sales have weakened in more recent years in line with reduced sales of large cars. Japanese imported brands including Nissan, Mazda, Honda and Subaru have also been strong sellers in the Australian market for the last three decades and their sales have typically strengthened in recent years. During the 1990s Hyundai became a strong participant in the Australian market, but sales fell back markedly from 1999 before beginning a strong recovery in 2004, while Kia has consolidated its presence in Australia. The chart below shows sales by marque at about 5 year intervals since 1991. A number of European marques including Audi, Peugeot and Porsche, which are not shown on the chart, have strengthened their sales in Australia during the last 10 years, as have Suzuki and the Chrysler marques. Vehicle Sales by Marque - Australia Thousand vehicles [Source: VFACTS vehicle sales data] Vehicle Parc 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 10 years in March 2007. Australian Vehicle Parc Million vehicles [Source: Australian Bureau of Statistics, Motor Vehicle Census, Australia, catalogue no 9309.0, various years.] Quarterly Vehicle Sales 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. This was most noticeable in the June quarters - the chart below showing the weakness of this quarter in 2000 and 2001 compared with all other years charted, both prior and post. 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. The 2005 year was reinforced by record sales in each of the first three quarters. 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 although high fuel prices dampened sales of large cars. In contrast to 2005, sales in 2006 were a little down in each of the first 3 quarters and it was only the December quarter that exceeded the same quarter of 2005. Sales fell for all types of vehicles except heavy commercials for the full year. With petrol prices reaching new heights, smaller cars and SUVs sold well while sales fell for large cars and medium and large SUVs. Each quarter of 2007 recorded the highest sales for that quarter and the December quarter finished the year with a big leap in sales compared with the same quarter of 2006. 2008 has also proved to be a strong year for sales with highest ever March and June quarters, although on a seasonally adjusted basis the June quarter was lower than the 2 preceding quarters. Monthly sales in July and August were weaker again. Quarterly Vehicle Sales Thousand vehicles [Source: VFACTS vehicle sales data]