Leslie Massey
Australia's automotive market is mature, with modest growth expected in the future. In 2022, Australia was the 16th largest market for total US exports, the sixth-largest export market for automotive parts, and the ninth-largest export market for new light vehicles. In 2022, new vehicle sales in Australia totalled 1,081,429 units, with SUVs accounting for 53.1% of the market, light commercial vehicles 23.7%, passenger cars 18.8%heavy commercial vehicles 4.4%. While the supply of EVs is increasing, demand remains weak, with Australian families and businesses slow to adopt lower-emission vehicles.
| Characteristics | Values |
|---|---|
| Maturity of the market | Mature with modest growth expected |
| US exports to Australia in 2022 | $1.4 billion worth of auto parts and 27,494 new light vehicles |
| Number of vehicle brands | 60 |
| Number of vehicle models | 380 |
| Number of dealer locations | 3,600+ |
| Total new vehicle sales in 2022 | 1,081,429 units |
| Percentage of sales that were SUVs | 53.1% |
| Percentage of sales that were light commercial vehicles | 23.7% |
| Percentage of sales that were passenger cars | 18.8% |
| Percentage of sales that were heavy commercial vehicles | 4.4% |
| Total new vehicle sales in 2021 | 1,049,831 units |
| Percentage of sales that were SUVs | 49.6% |
| Percentage of sales that were passenger cars | 24.2% |
| Percentage of sales that were light commercial vehicles | 22.4% |
| Percentage of sales that were heavy commercial vehicles | 6.4% |
| Total new vehicle sales in the first four months of 2025 | 381,017 units |
| Total new vehicle sales in the first three months of 2025 | 290,403 units |
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What You'll Learn
Vehicle sales and exports
Australia's automotive market is mature, with modest growth expected in the future. In 2022, the country was the ninth-largest export market for new light vehicles from the US, both by value and units. That year, the US exported 27,494 new light vehicles to Australia, totalling $1.057 billion. There are over 3,600 dealer locations in Australia, with 60 vehicle brands and 380 vehicle models sold in the market.
In 2021, 1,049,831 new passenger cars, SUVs, and commercial vehicles were sold in the local market, up from 916,968 in 2020. SUV sales accounted for 49.6% of the market, followed by passenger cars at 24.2%, light commercial vehicles at 22.4%, and heavy commercial vehicles at 6.4%. However, new vehicle sales in Australia decreased by 4.6% year-over-year in the first three months of 2025, with a decline in passenger car sales and an increase in SUV sales.
US manufacturers have a positive reputation in Australia for producing high-quality, well-engineered auto aftermarket and specialty products. They have found success in supplying aftermarket performance parts, off-road and light truck accessories, repair tools, and consumables. US-made pickups like the Ford 150/250, GM Silverado, Toyota Tucson, and Dodge Ram are imported by private companies and converted to right-hand drive locally due to the high conversion cost. However, the Ram sells in higher numbers than its competitors at a converted price of under AU$100,000. Ford plans to offer the F150 in Australia through its dealer network, also converting it to right-hand drive locally.
There are limited barriers to exporting automotive products to Australia, especially with the Australia-US Free Trade Agreement. If products are classified as automotive items with a minimum of 51% US content, they are exempt from customs tariffs under this agreement. However, vehicle compliance in Australia can be more complex than in the US, with the Australian Design Rules (ADRs) guiding compliance requirements. Small modifications may require a construction engineer's report to ensure compliance.
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Vehicle type popularity
Australia's automotive market is mature, with modest growth expected in the future. In 2022, almost 1,081,429 new vehicles were sold in the country.
SUVs are the most popular vehicle type in Australia, with sales of these accounting for 53.1% of the market in 2022, up from 49.6% in 2021. This is followed by light commercial vehicles, which accounted for 23.7% of the market in 2022, and 22.4% in 2021. Passenger car sales have been declining, with a 27.4% decrease in sales in April 2025 compared to the same period in 2024, and they made up only 18.8% of the market in 2022, down from 24.2% in 2021. Heavy commercial vehicles made up 4.4% of the market in 2022, down from 6.4% in 2021.
The demand for electric vehicles (EVs) in Australia is weak, despite an increase in supply and 89 models being available in the country. Sales of battery-electric vehicles were the lowest since October 2022, with a 4.4% sales share in January 2025.
There is a market for off-road vehicles in Australia, with consumers keen to customise their light trucks. Popular brands in this market include Toyota Hilux, Ford Ranger, Mitsubishi Triton, and Nissan Navara.
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Manufacturing and assembly
Australia's automotive market is mature, with modest growth expected in the future. In 2022, the country was the sixth-largest export market for automotive parts from the US and the ninth-largest export market for new light vehicles.
The history of car manufacturing in Australia is long and varied. Australian constructors were very active at the dawn of car development, and in some areas, they were ahead of their overseas counterparts. Due to the country's isolation, it was more practical for Australia to make its own cars. The first imported car in Australia is believed to be the Pender-Hertel of 1897.
In 1926, Australian Motor Industries (AMI) was founded and began assembly operations in 1952. It produced a wide range of Standard, Triumph, and Mercedes-Benz cars, as well as a variety of Rambler models from American Motors Corporation (AMC) until 1987. Assembly of Toyota automobiles began in 1963, and the company took a controlling interest in AMI in 1968, leading to a name change to AMI Toyota Ltd in 1985.
British Leyland assembled and manufactured vehicles in Australia from 1950 to 1975. Chrysler departed the Australian market in 1981, selling its remaining shareholding in Chrysler Australia Ltd to Mitsubishi Motors Corporation of Japan, which renamed the company Mitsubishi Motors Australia (MMA). Holden, an Australian automaker based in South Australia, ended local manufacturing operations in 2017 and became an importer of GM-branded motor vehicles. Ford also ended Australian production in 2016, but it continues to operate design and development facilities in the country.
Kenworth Australia, a subsidiary of Paccar Inc, is the largest single-nameplate manufacturer in the country. It began production in 1971 and manufactures heavy-duty semi-trucks for the Australian and New Zealand markets at its plant in Bayswater, Victoria. In 2018, Paccar began assembling DAF Trucks next to the Kenworth facility. Mack Trucks have been manufactured in Australia since 1963, and after Volvo acquired the truck and bus arm of Renault in 2000, production was moved to Volvo Group Australia's facility in Wacol, Queensland.
Performance parts are in demand for Australian-manufactured performance vehicles from Ford and GM Holden, including the Commodore and Falcon. The off-road market is also promising, with consumers keen to customize their light trucks. Popular accessories include upgraded suspension components, bull bars, roof racks, upgraded lighting, and shock absorbers.
There are relatively few barriers to exporting automotive products to Australia, and US manufacturers have a good reputation for making high-quality, well-engineered auto aftermarket and specialty products. Private companies import US-made pickups such as the Ford 150/250, GM Silverado, Toyota Tucson, and Dodge Ram, and convert them to right-hand drive locally.
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Market growth
Australia's automotive market is mature, with modest growth expected in the future. In 2022, Australia was the 16th largest market for total US exports. That year, the US exported almost $1.4 billion worth of auto parts and 27,494 new light vehicles to Australia, totalling $1.057 billion. There are over 3,600 dealer locations in Australia, with 60 vehicle brands and 380 vehicle models sold in the market.
In 2021, 1,049,831 new passenger cars, SUVs, and commercial vehicles were sold in the local market, up from 916,968 in 2020. SUV sales accounted for 49.6% of the market, followed by passenger cars at 24.2%, light commercial vehicles at 22.4%, and heavy commercial vehicles at 6.4%. New vehicle sales in Australia in 2022 totalled 1,081,429 units, with SUVs accounting for 53.1% of the market, light commercial vehicles at 23.7%, passenger cars at 18.8%heavy commercial vehicles at 4.4%.
While the Australian automotive market is expected to grow modestly, new vehicle sales have decreased in recent months. In January 2025, the Federal Chamber of Automotive Industries announced that new vehicle registrations of 86,804 units represented a 3.3% decrease compared to the previous year. Similarly, in March 2025, new vehicle registrations of 108,606 units were a 0.9% decrease year-over-year. This trend continued in April 2025, with new vehicle registrations of 90,614 units, a 6.8% decrease compared to April 2024. These decreases have been attributed to various factors, including economic conditions and a drop in demand for electric vehicles.
Despite these recent decreases in new vehicle sales, there are still opportunities for market growth in Australia. The off-road market is particularly promising, with consumers keen to customise their light trucks due to the vast tracks of outback terrain. Performance parts are also in demand for Australian-manufactured performance vehicles, and the local motorsport market is very healthy. Additionally, there are relatively few barriers to exporting automotive products to Australia, especially for US manufacturers who have a good reputation for high-quality, well-engineered auto aftermarket and specialty products.
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Vehicle compliance
In Australia, vehicle compliance regulations are governed by various authorities and bodies, including the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts. This department manages policy and standards development, including vehicle safety, emissions, vehicle noise, and fuel consumption labelling.
The Road Vehicle Standards (RVS) laws and the Australian Design Rules (ADRs) provide the regulatory framework for vehicle compliance. The ADRs are national standards for vehicle safety, anti-theft measures, and emissions. They cover a range of aspects, including occupant protection, structures, lighting, noise, engine exhaust emissions, and braking.
To ensure compliance, vehicle owners must familiarise themselves with the regulations and seek expert advice when needed. Compliance may involve specific requirements for vehicle modifications and aftermarket accessories. For example, small modifications may require a construction engineer's report to ensure the vehicle complies with the ADRs.
Compliance also impacts the resale value and insurability of vehicles. Compliant vehicles are more likely to retain their resale value and can be easier to insure, providing long-term financial benefits to owners.
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Frequently asked questions
Australia's automotive market is mature, with modest growth expected in the future. In 2022, there were over 3,600 dealer locations across the country, with 60 vehicle brands and 380 vehicle models sold in the Australian market.
In 2022, SUVs accounted for almost 53.1% of the market, with popular models including the Toyota Hilux, Ford Ranger, Mitsubishi Triton, and Nissan Navara. Other top-selling models include the Toyota Prado, Jeep Grand Cherokee, Mazda BT-50, and Toyota Land Cruiser.
While there has been a push towards lower-emission vehicles, Australian consumers are not rapidly adopting electric vehicles (EVs). Despite an increase in the supply of EVs, with 89 models available in the country, demand remains weak. This trend is consistent with other advanced markets globally.
