Leslie Massey
Australia has a long history of car manufacturing, with Australian constructors being very active at the beginning of car development. The first car made in Australia was the Phaeton, a steam car made in 1896. In the 20th century, a substantial car industry was created in Australia through the opening of Australian plants by international manufacturers. The first major carmaker was Ford Australia, and Holden, an Australian car company, designed and produced the first Australian mass-production car in 1948. Holden offered a broad range of original, locally produced vehicles, such as the Holden Commodore, and also offered badge-engineered Chevrolet, Isuzu, Nissan, Suzuki, Toyota, and Vauxhall Motors models. However, Holden ended their local manufacturing operations in Australia in 2017 and retired their brand name in 2020. Other car manufacturers in Australia included Toyota Australia, which manufactured local variants of its international models, and British Leyland, which assembled and manufactured vehicles in Australia from 1950 to 1975. While Australia had a significant car-building industry in the past, it is unlikely that the country will design, engineer, and mass-produce cars from the ground up again due to economic realities and the rise of the modern globalized economy.
| Characteristics | Values |
|---|---|
| History of car manufacturing | Active in the beginning, with the first Australian-made steam car in 1896. The first petrol-driven car was made in 1901. |
| Peak of car manufacturing | The 1970s, with almost half a million cars produced (10th in the world). |
| Major car manufacturers | Holden, Ford Australia, Toyota Australia, Australian Motor Industries (AMI), British Leyland, Chrysler Australia, Mitsubishi Motors Australia |
| Reasons for decline | High Australian dollar, lack of government support, competition from imports, small domestic market, high manufacturing costs |
| Current landscape | Some local variants of international models are produced, but most cars are imported from other countries. |
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What You'll Learn
Australia's car manufacturing history
Australia has a long history of car manufacturing, which has played a significant role in the country's past and present. The country's isolation made it more practical for Australia to produce its own vehicles, and it was active in the early development of cars.
The first imported car in Australia is believed to be the Pender-Hertel, which arrived in 1897. The Highland was one of the first vehicles offered for sale in 1894, initially as a motorised tricycle, and then as a four-wheeled, two-seater vehicle in 1896. The first car made in Australia was a steam car called the Phaeton, produced in 1896 by Herbert Thomson and Edward Holmes in Melbourne.
In 1901, Harley Tarrant produced the first Tarrant automobile, the first petrol-driven car built entirely in Australia. This was followed by many improved designs, including the first fully enclosed car body made in Australia. Tarrant's workshop eventually began using locally produced components, including engines, gearboxes, and rear axles.
In the 20th century, a substantial car industry was created in Australia with the opening of plants by international manufacturers. Ford Australia, established in 1925, was the first major carmaker, and Holden, which sold its one-millionth car in Australia in 1962, was the first Australian-designed mass-production car manufacturer in 1948. Holden offered a broad range of original, locally produced vehicles, such as the Holden Commodore, and also sold badge-engineered models from other companies.
Australian Motor Industries (AMI), founded in 1926, began assembly operations in 1952, producing a range of Standard, Triumph, and Mercedes-Benz cars, as well as Rambler models from American Motors Corporation (AMC). British Leyland assembled and manufactured vehicles in Australia from 1950 to 1975.
In the 1970s, Australian car manufacturing peaked at almost half a million vehicles annually, ranking 10th in the world. The country was known for designing and producing large-sized passenger vehicles. However, by 2009, total production had fallen to around 175,000, and the market was dominated by imported cars from Asia and Europe.
In 2013, Holden announced it would end its local manufacturing operations, and the Holden brand name was retired in 2020. Ford Australia's engine and vehicle plants closed in 2016, and Toyota Australia, which produced local variants of its international models, closed its factories in 2017. Despite these setbacks, Australia's automotive sector remains resilient, with a mix of automotive brands from various countries.
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The rise and fall of the Australian car industry
Australia's automotive industry rose from the aftermath of World War II, with the Australian government offering foreign companies subsidies and tax concessions to bring production to Australian soil. The first major carmaker was Ford Australia, which announced its headquarters in Geelong, Victoria, in 1925. The first Australian-designed mass-production car was manufactured by Holden in 1948, and the company would eventually become Australia's flagship brand.
The industry peaked in the 1970s, with annual automotive production in Australia reaching around 500,000 cars per year, and nearly a dozen manufacturers building vehicles in the country. The Australian car market was best known for the design and production of 'large' sized passenger vehicles.
However, the rise of the modern globalized economy brought new challenges for Australia's car industry. The rise of Japan and China in the global economy started to edge out traditional winners like Australia. As foreign money entered the Australian economy, the value of the country's currency increased, making exports more expensive. This was exacerbated by the lowering of import tariffs and the signing of Free Trade Agreements, making it difficult for the domestic industry to compete with cheaper foreign production inputs.
The mining boom also played a role in the decline of the Australian car industry, as foreign investment in the mining sector led to a rise in the relative price of the nation's exports. Additionally, retreating government support and the Toyota Production System also contributed to the industry's downfall.
By 2009, total production had fallen to around 175,000, and the Australian market was dominated by imported cars from Asia and Europe. Holden ended its local manufacturing operations in 2017, and the Holden brand name was retired in 2020. The last factory, operated by Toyota, also closed in 2017, marking the end of Australia's car-making industry.
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Australian-designed cars
Australia has a long history of designing and manufacturing cars. Due to the country's isolation, it was often more practical for Australia to make their own cars. In the 20th century, a substantial car industry was created in Australia through the opening of Australian plants by international manufacturers. The first major carmaker was Ford Australia, which established its headquarters in Geelong, Victoria, in 1925. The first Australian-designed mass-production car was manufactured by Holden in 1948. Holden offered a broad range of original, locally produced vehicles, such as the Holden Commodore, and also offered badge-engineered models from other companies, including Chevrolet, Isuzu, Nissan, Suzuki, Toyota, and Vauxhall Motors.
The first petrol-driven car built entirely in Australia was the Tarrant automobile, produced by Harley Tarrant in 1901 in a small workshop in Melbourne. Tarrant was joined by bicycle maker Howard Lewis, and the car was powered by a rear-mounted 6 hp Benz engine. This was followed by many improved designs, including the first fully enclosed car body made in Australia.
Australian manufacture of cars rose to a maximum of almost half a million in the 1970s, ranking 10th in the world. By 2004, manufacture still exceeded 400,000, but by 2009, it had fallen to around 175,000, with the Australian market dominated by imported cars from Asia and Europe. In 2016, Ford Australia and Holden closed their engine and vehicle plants, and Toyota Australia followed suit in 2017. As of 2020, Holden has been shuttered and will no longer be sold as a GM brand.
Despite the decline in local manufacturing, Australia remains one of 13 countries with the capabilities to design and develop mass-market cars from scratch. Australian-designed cars are still manufactured by companies such as Ford Australia and Toyota Australia, which manufactures local variants of its international models, such as the Camry and Corolla. Additionally, there are several small-scale producers of cars in Australia, including Corsa Specialised Vehicles (CSV), a small-scale automaker established in 1994 and based in Mildura, Australia.
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International manufacturers in Australia
Australia's automotive industry was established in the 20th century, with international manufacturers setting up local plants. The country was particularly known for designing and producing large-sized passenger vehicles.
Ford Australia
Ford Australia, a subsidiary of Ford, was the first major carmaker in Australia. In 1925, Ford announced that its Australian headquarters would be in Geelong, Victoria. The company produced the first Australian-designed mass-production car in 1948, and continued to manufacture cars in the country until 2016. Ford Australia also has a performance car division, Ford Performance Vehicles (FPV).
Holden
Holden, a subsidiary of General Motors (GM), was another key player in Australia's automotive industry. The company was founded in 1856 as a saddlery business and later transitioned into automotive manufacturing. Holden produced a range of locally designed and manufactured vehicles, including the Commodore and the Falcon. In 2017, Holden ended its local manufacturing operations and shifted its focus to car styling and importing.
Toyota Australia
Toyota Australia, a subsidiary of the Japanese company Toyota, manufactured local variants of its international models in Australia. The Corolla, one of the world's most popular auto nameplates, has been a top-selling car in Australia. Toyota Australia also produced the Camry, which was another popular model.
Other International Manufacturers
Other international manufacturers with a presence in Australia include British Leyland, which assembled and manufactured vehicles in the country from 1950 to 1975. Chrysler, an American company, was also active in the Australian market until 1981 when it sold its shareholding to Mitsubishi Motors Corporation of Japan. The resulting company, Mitsubishi Motors Australia (MMA), continues to be a major importer of road vehicles.
Additionally, Australian Motor Industries (AMI), founded in 1926, assembled a range of vehicles from various international brands, including Standard, Triumph, Mercedes-Benz, and Rambler models from American Motors Corporation (AMC). Volvo Group Australia, which acquired Mack Trucks in 2000, operates the largest vehicle plant in Australia.
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The future of Australian car manufacturing
Australia has a long history of car manufacturing, with Australian constructors being very active in the early days of car development. The first Australian-made cars were steam-powered, and the first petrol-driven car was produced in 1901 by Harley Tarrant in Melbourne.
The 20th century saw the creation of a substantial car industry in Australia, with Ford Australia and Holden leading the way. Holden offered a broad range of original, locally produced vehicles, such as the Holden Commodore. In 1948, Holden manufactured the first Australian-designed mass-production car.
However, the Australian car industry has faced significant challenges in recent years, with a decline in local manufacturing and an increase in imported vehicles. Several factors contributed to the decline, including the high value of the Australian dollar, a strong mining industry, and retreating government support. The rise of globalization also meant that Australia's manufacturers struggled to compete with the large-scale vehicle exports of other countries.
As a result, many car companies have left Australia or shifted their focus. Ford and Mitsubishi departed, while Holden ended its local manufacturing operations in 2017 and retired its brand name in 2020. Toyota Australia also transitioned to manufacturing local variants of its international models, such as the Camry and Corolla.
Despite the challenges, there are still opportunities for the Australian car industry to evolve and adapt. With a focus on car styling, electric vehicles, and military vehicles, there is potential for a new era in Australian car manufacturing. Additionally, Australia continues to be a market for a mix of automotive brands from around the world, including Japanese, European, Chinese, South Korean, and American manufacturers.
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Frequently asked questions
Australia used to have a thriving automotive industry, but it has declined in recent years due to economic factors and retreating government support. So, while Australia may have made good cars in the past, it is debatable whether it still does.
Australia was best known for the design and production of large-sized passenger vehicles. Holden, for example, offered a broad range of locally produced vehicles, such as the Holden Commodore.
Australian Motor Industries (AMI) was an Australian company that produced a range of vehicles, including Standard, Triumph, and Mercedes-Benz cars. AMI was acquired by Toyota in 1985 and became AMI Toyota Ltd.
The Ford Everest is a vehicle that embodies the stereotypical Australian lifestyle. Additionally, the first petrol-driven car built entirely in Australia was the Tarrant automobile, produced by Harley Tarrant in 1901.
The Australian automotive industry has been in decline, with companies such as Ford, Mitsubishi, and Nissan withdrawing their manufacturing operations from the country. In 2020, Holden also ended its local manufacturing operations and retired its brand name in 2020.
