Ruqayyah Snyder
Australia has a rich history of car manufacturing, dating back to the late 19th century. The industry played a significant role in shaping the country's past, not only through the advancement of automotive technology but also by providing an essential mode of transport that changed the lives of many Australians. The first major carmaker in Australia was Ford Australia, founded in 1925, with the first Australian-designed mass-produced car being manufactured by Holden in 1948. However, in recent years, the Australian car manufacturing industry has experienced a decline, with local production ceasing in 2017 and all vehicles now being imported. Despite this, companies like Premcar have continued to create local market versions of popular cars, keeping the spirit of Australian automotive engineering alive.
| Characteristics | Values |
|---|---|
| History of car manufacturing | The history of car manufacturing in Australia dates back to the late 19th century. |
| Major car manufacturers | Ford Australia, Holden, Toyota Australia, General Motors Holden Limited, Mitsubishi Motors Australia, Volvo Group Australia, Mack, Renault, British Leyland, Finlayson Bros & Co. Pty Ltd, Haines & Grut Motor Buggy Co. Pty Ltd |
| Australian-owned car manufacturers | Holden, Premcar |
| Peak of car manufacturing | Australia's car manufacturing peaked in the 1970s with almost half a million cars produced. |
| Decline of car manufacturing | The industry has experienced a decline in recent years, with local car manufacturing ceasing in 2017. |
| Reasons for decline | Distance from decision-making centres of parent companies, lack of public spending and investment in education and vocational pursuits, anti-worker sentiment, high costs of manufacturing, competition from imported cars, technological advances |
| Government support | The Australian government injected $119 million into the industry in 2017 and announced the 'Advanced Manufacturing Fund' to aid closures and support unemployed workers. |
| Impact of closures | An estimated 40,000 people were impacted by the closure of assembly plants, including 6,600 employees of Ford, Holden, and Toyota. |
| Current status | Australia's automotive manufacturing industry is relatively small, with all vehicles sold in the country being imported. |
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What You'll Learn
History of Australian car manufacturing
Australia's automotive industry was created in the 20th century, with the first major carmaker being Ford Australia, founded in 1925. The first Australian-built car was a Ford Model T, launched in June 1925. The first Australian-designed mass-produced car was manufactured by Holden in 1948.
Other early Australian automobile manufacturers included Finlayson Bros & Co. Pty Ltd (1900-1904), J.A.C. Ziegler (1898-?) and Knowles Automobile and Motor Power Co. (1903-?) Tarrant, with the help of bicycle maker Howard Lewis, built the first car with a rear-mounted 6 hp Benz engine. This was followed by many improved designs, including the first fully enclosed car body made in Australia.
In 1950, British Leyland began assembling and manufacturing vehicles in Australia, continuing until 1975. In 1952, Australian Motor Industries (AMI) began assembly operations, producing a wide range of Standard, Triumph, and Mercedes-Benz cars, as well as Rambler models from American Motors Corporation (AMC). Toyota automobiles began assembly in 1963, and the Japanese company took a controlling interest in AMI in 1968, renaming it AMI Toyota Ltd in 1985.
In 1971, Chrysler Australia acquired a 15% interest in Mitsubishi Motors Corporation, leading to the production of Mitsubishi-designed, Chrysler-branded vehicles such as the Chrysler Valiant Galant and the Chrysler Sigma. However, Chrysler departed the Australian market in 1981, selling its shareholding to Mitsubishi Motor Corporation, which renamed the company Mitsubishi Motors Australia (MMA). Renault also had a presence in Australia, assembling models such as the Renault 10, 12, 16, and 18 until the closure of its Heidelberg plant in 1981.
In 2013, Ford announced it would end Australian production in 2016, and Holden followed suit, ending local production in 2017. Toyota also ceased manufacturing vehicles and engines in Australia in 2014. With the end of domestic passenger car manufacturing, Australia became reliant on imported vehicles, with companies like Ford and GM continuing to support the local market with imported cars.
Today, heavy vehicle manufacturing remains a significant presence in Australia, with companies like Volvo, Mack, and Kenworth building locally.
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Australian-owned car manufacturing companies
Australia has a rich history of car manufacturing, with the first Australian-designed mass-produced car launched in 1948. However, the country's car industry has faced challenges in recent years, with many manufacturers ceasing local production and importing vehicles instead. Nevertheless, Australia continues to have a presence in the automotive industry, with some local manufacturers still in operation.
One notable Australian-owned car manufacturing company is Ford Australia, the Australian subsidiary of Ford Motor Company. Ford Australia was founded in Geelong, Victoria, in 1925 and was the first major carmaker in the country. While Ford Australia ended local production in 2016, it remains a competitor in the Australian market through the importation of vehicles. Holden, an Australian automaker based in South Australia, is another significant player. Holden was acquired by General Motors and manufactured Australian-designed cars until 2017 when it transitioned to importing GM-branded motor vehicles.
In addition to Ford Australia and Holden, there have been other Australian-owned car manufacturing companies throughout the country's history. Tarrant, founded by Tarrant and Howard Lewis, produced the first fully enclosed car body made in Australia. Other historic manufacturers include Finlayson Bros & Co. Pty Ltd (1900-1904), Haines & Grut Motor Buggy Co. Pty Ltd (1908-1909), J.A.C. Ziegler (1898-?) and Knowles Automobile and Motor Power Co. (1903-?).
While the Australian car industry has seen a decline in local manufacturing, some small-scale producers remain active. Corsa Specialised Vehicles (CSV), established in 1994 and based in Mildura, is one such example. Additionally, Australia continues to have a presence in the automotive industry through design and development facilities, such as those maintained by Ford. Despite the challenges, Australia remains one of 13 countries with the capabilities to design and develop mass-market cars from scratch.
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Top-selling car brands in Australia
Australia's automotive industry was once substantial, with the country being known for its design and production of large-sized passenger vehicles. However, by 2009, total production had fallen significantly, and the market was dominated by imported cars from Asia and Europe.
Despite this shift towards imported vehicles, several car brands continue to be top-sellers in Australia. Here is a list of the top-selling car brands in Australia as of 2024 and 2025:
Toyota
Toyota has been Australia's top-selling car brand for decades, topping the new car sales charts for over 27 years in a row. In 2024, Toyota led the market with 241,296 vehicles sold, a 12.1% increase year-on-year. In 2025, Toyota extended its lead, recording 57,797 new vehicle sales year-to-date, more than double that of its nearest competitor. Popular Toyota models in Australia include the HiLux, RAV4, Corolla, and Prado. The RAV4 Hybrid, Corolla Hybrid, and Camry Hybrid were the top three best-selling new hybrid vehicles in Australia in 2024.
Ford
Ford Australia, a subsidiary of Ford Motor Company, has been present in the country since 1925. Ford secured second place in sales in 2024 with 100,170 vehicles sold. The Ford Ranger, designed at the company's Broadmeadows facility, was the best-selling vehicle in Australia in 2023 and is currently the country's most trustworthy vehicle. Ford's sales were up more than 30% in 2023, with 63,356 sales across the lineup.
Mazda
Mazda was the second most popular car brand in Australia in 2023 and came in third place in 2024 with 95,987 units sold, despite a 4.0% drop. The Mazda CX-5 is the most popular model in the Mazda category, particularly for those seeking a mid-size SUV. The Mazda BT-50 ute also saw improvements in sales numbers.
Mitsubishi
Mitsubishi Motors Australia (MMA) is one of the country's major importers of road vehicles. In 2024, Mitsubishi came in fifth place with about 74,500 vehicles sold. The Mitsubishi Outlander is the company's top-selling car and is one of Australia's most popular plug-in hybrid electric vehicles (PHEV).
Hyundai
Hyundai is another popular brand in Australia, known for its advanced technology and superior design features. In 2024, Hyundai dropped to sixth place with over 71,000 vehicles sold. While none of its models made the top 10 list for the year, the Hyundai Kona ranked tenth among the best-selling cars year-to-date in March 2025. The Hyundai i30 is the favourite choice among Australians when it comes to selecting a hatchback.
Other notable mentions include MG, which came in seventh place in 2024 with about 50,592 vehicles sold, and Isuzu, which ranked eighth in 2024 with 48,172 vehicles sold. Tesla also had a significant increase in sales in 2023, with a 135% increase and 46,116 deliveries.
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The future of Australian car manufacturing
Australia's automotive industry has a rich history, with Ford Australia, the country's first major carmaker, and Holden, which produced the first Australian-designed mass-production car in 1948. However, in recent years, the industry has faced challenges, with Ford, Holden, and Toyota ending local manufacturing in the 2010s. The future of Australian car manufacturing now lies in electric vehicle (EV) production and conversion.
Melbourne-based engineering firm Premcar is leading the way, with plans to convert popular utes like the Toyota HiLux and Ford Ranger into electric vehicles. This project aims to extend the lifespan of these vehicles while reducing their carbon footprint. While Premcar requires additional funding to fully realize its ambitions, its efforts represent a significant step toward a "Future Made in Australia."
Despite the challenges, Australia still possesses a skilled automotive workforce, and companies like Premcar are leveraging local expertise to innovate and adapt to changing market demands. Additionally, the country continues to have a robust heavy vehicle manufacturing base, with companies like Volvo, Mack, and Kenworth building locally.
Looking ahead, the revival of Australian car manufacturing hinges on several factors. Firstly, financial incentives and investments are crucial for encouraging local companies to design, develop, and manufacture EVs and EV-related components. Secondly, addressing philosophical and political challenges, such as hesitancy toward public spending and anti-worker sentiments, is essential. Finally, Australia's geographical distance from decision-making centers and parts suppliers remains a hurdle to overcome.
In conclusion, the future of Australian car manufacturing is evolving toward electrification and innovation. By leveraging local skills and resources, companies like Premcar are paving the way for a new era in the country's automotive industry. While challenges remain, Australia has the potential to become a significant contributor to the global EV market and reshape its automotive landscape.
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Foreign car exports to Australia
Australia's car industry was historically dominated by international manufacturers, with Ford Australia being the first major carmaker in the country. Holden, a subsidiary of General Motors, and Toyota Australia also manufactured cars locally. However, in recent years, local production has declined, and by 2009, the Australian market was dominated by imported cars from Asia and Europe.
Ford Australia, Holden, and Toyota Australia have all ended local production in recent years, with Ford and Holden becoming importers of vehicles and Toyota repurposing its factories. Mitsubishi Motors Australia, formed after Chrysler sold its Australian operations, also discontinued local production in 2008.
While Australia still has some local manufacturing of heavy vehicles by companies like Volvo, Mack, and Kenworth, the large-scale production of passenger vehicles has shifted overseas. This shift is due in part to the high costs of manufacturing in Australia, the country's distance from other parts suppliers, and the dominance of imports from Asia and Europe.
In 2023, Australia's exports of motor vehicles totalled $193 million, a decrease from $214 million in 2022. Imports of motor vehicles, on the other hand, totalled $19.8 billion in 2022 and increased by 26% in 2023, reaching $24.96 billion. This data highlights the significant trade imbalance in the automotive sector, with imports far exceeding exports.
The top trading partners for Australia's imports of motor vehicles in 2023 were Japan, with 35% of the total imports, and Thailand, with 26%. These two countries alone accounted for over $12 billion of the motor vehicle imports into Australia.
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Frequently asked questions
Australia has a rich history of car manufacturing, dating back to the late 19th century. However, in recent years, the industry has experienced a decline, with local car manufacturing ceasing in 2017. All vehicles sold in Australia are now imported. Despite this, there are still some local automotive companies, such as Premcar, that are creating opportunities with major carmakers.
The decline of the Australian car manufacturing industry can be attributed to various factors, including the distance from parts suppliers and the high cost of manufacturing in a small and saturated market. Additionally, the closure of factories by major manufacturers like Ford, GM, and Toyota significantly impacted the industry.
Holden, a subsidiary of General Motors, was an Australian automaker that manufactured cars in Australia until 2017 when it became an importer of GM-branded vehicles. Other Australian-owned car manufacturers in the past included Finlayson Bros & Co. Pty Ltd, Haines & Grut Motor Buggy Co. Pty Ltd, and Tarrant, who built the first fully enclosed car body in Australia.
