Leslie Massey
Australia has a long history of automobile manufacturing, with the first Australian-made cars being steam-powered. In recent years, however, the country has seen a decline in domestic vehicle manufacturing, with many companies ending their local assembly operations. Despite this, Australia still produces a significant number of cars annually, with data from CEIC showing an average yearly production of 235,645 units from December 1997 to 2023. The data also shows that production reached an all-time high of 413,261 units in 2003. In 2023, there were over 21 million registered vehicles in Australia, with the number expected to continue climbing year on year.
| Characteristics | Values |
|---|---|
| Total number of registered vehicles in Australia in 2021 | 20,267,832 |
| Total number of registered vehicles in Australia in 2022 | 20,687,047 |
| Total number of registered vehicles in Australia in 2023 | 21,168,462 |
| Total number of registered vehicles in Australia as per the latest data | More than 21 million |
| Number of registered motor vehicles in New South Wales in 2023 | 6,154,814 |
| Number of registered motor vehicles in Queensland in 2023 | 4,598,755 |
| Number of registered motor vehicles in South Australia in 2023 | 1,556,185 |
| Number of registered motor vehicles in Western Australia in 2023 | 2,437,785 |
| Number of registered motor vehicles in Northern Territory in 2023 | 166,110 |
| Number of cars sold in Australia in 2023 | 3.3 million |
| Highest number of cars produced in Australia in a year | 413,261 in 2003 |
| Lowest number of cars produced in Australia in a year | 4,730 in 2020 |
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What You'll Learn
Australia's first cars
Australia has a long history of car manufacturing, with Australian constructors being very active at the beginning of automobile development. Due to the country's isolation, it was often more practical for Australia to make their own 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 types of automobiles to be offered for sale in Australia, first as a motorised tricycle in 1894, and then as a four-wheeled, two-seater vehicle in 1896.
The first car made in Australia was a steam car. Dubbed the 'Thomson Motor Phaeton', it was made in 1896 by Herbert Thomson and Edward Holmes of Armadale, Melbourne. The Phaeton was exhibited in 1900 using the first pneumatic tyres made in Australia by Dunlop. The 5-horsepower single-cylinder steam carriage was durable and reliable, taking its creators 493 miles from Bathurst to Melbourne at an average speed of 8.7 miles per hour.
In 1900, Bruno Hammer built a one-off automobile in Mount Torrens, South Australia. In 1901, Harley Tarrant produced the first Tarrant automobile, which was the first petrol-driven car built entirely in Australia. The car was powered by a rear-mounted 6 hp Benz engine. Tarrant was joined by bicycle maker Howard Lewis, and their car was followed by many improved designs, including the first fully enclosed car body made in Australia.
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Holden's closure
The closure of Holden's Elizabeth plant in South Australia marked the end of an era for the Australian automotive industry. Holden, formerly known as General Motors-Holden, was an iconic Australian automobile manufacturer, importer, and exporter. Founded in 1856 as a saddlery manufacturer in South Australia, Holden ventured into the automotive field in 1898 and became a subsidiary of General Motors (GM) in 1931. Over the years, Holden offered various models, including the Commodore, Caprice, and Ute, as well as badge-engineered vehicles from Nissan, Suzuki, Toyota, and Isuzu.
However, Holden faced challenges in the highly competitive Australian market, with declining sales and market share losses to rivals such as Ford, Mitsubishi, Nissan, and Toyota. The Camira, introduced in 1982, initially sold well but eventually contributed to Holden's financial losses due to quality issues. Holden also struggled with a strong Australian currency, high manufacturing costs, and a small domestic market. In 2013, the company revealed it had received significant federal government assistance, and in December of that year, Holden announced it would end its local manufacturing operations by 2017.
The decision to close the Elizabeth plant had a significant impact on the Australian automotive industry and the local community. Holden was a market leader for decades and promoted its Australian identity and patriotism. The closure resulted in the loss of local manufacturing jobs and dealt a blow to national pride. Holden's business shifted to car styling and importing, and the Holden brand name was eventually retired in 2020, marking the end of a 164-year-old company.
The closure of Holden's Elizabeth plant was not an isolated incident, as Ford and Toyota had also abandoned the Australian car-building business around the same time. Various factors contributed to the decline of the Australian automotive industry, including increasing global competition, changing consumer tastes, and the Global Financial Crisis. Additionally, government policies and GM's global product management strategies played a role in Holden's decision to exit local manufacturing.
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Nissan's expansion
Nissan has had a long history in Australia, with the company assembling cars in the country since 1966. However, in the 2010s, Nissan, like many other car manufacturers, ended local manufacturing operations and shifted its focus to car styling and importing. Despite this, Nissan has maintained a presence in the Australian market and has even expressed desires to expand its offerings in the country.
In recent years, Nissan has gone through a tumultuous period, discontinuing its passenger cars due to flagging sales but finding success with its range of SUVs. Models such as the Qashqai, X-Trail, and Patrol have been popular in Australia, and Nissan has recognised the country's growing interest in US-style trucks with the adoption of the Titan's 'PRO4-X' badge for the Navara.
To rival competitors like Ford and Mitsubishi, Nissan Australia has expressed interest in bringing in additional models, such as the Titan, a US-built full-size pickup with a powerful engine and high towing capacity. The company also recognises the potential of electric vehicles, with the Nissan Leaf already on offer and the Ariya, an all-electric mid-size SUV, expected to reinvigorate the brand locally.
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Tarrant's first car
Colonel Harley Tarrant, born in 1860 in Clunes, Victoria, was the son of a miner and owner of the Clunes Gazette, Joseph Tarrant. Tarrant was a businessman and worked as a surveyor on the Nullarbor Plain. He was passionate about camping, overseas travel, and automobiles. Tarrant's interest in motoring began during his time as a surveyor, where he dreamed of motor vehicles traversing the great expanse of Australia. He began writing publicity articles on the motor car, which were published in the cycling magazine Austral Wheel.
Tarrant's next machine, produced in 1903, was 90% locally made, including the engine, and became the prototype for at least eight others. These cars were built for endurance rather than speed and were designed to suit Australian conditions. Tarrant played an important role in local motoring affairs, lobbying for better traffic regulations and serving on the governing committee of the Automobile Club of Victoria. He also won his event in the club's first motor race meeting in 1904, averaging 26 miles (42 km) per hour.
In 1907, Tarrant shut down the production of his own car and acquired the Victorian franchise for Ford. Knocked-down versions of the Model T began arriving in Australia in 1908 and were assembled by dealers. Tarrant assumed responsibility for the distribution of Ford automobiles in Victoria, and the Model T proved to be a massive success in Australia. Tarrant's car company was eventually sold in 1950 to the Austin Motor Co. (British Motor Corporation).
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Current car stats
Australia has a long history of automobile manufacturing, with the first car made in the country being a steam-powered vehicle built in 1896. However, in recent years, the country has seen a decline in domestic vehicle manufacturing, with many companies ending their local assembly operations. Despite this, there are still a number of small-scale car producers in Australia, and the country continues to import and export vehicles and automotive components.
According to the latest publicly available federal government figures from 2024, there are more than 21 million registered vehicles in Australia. This number has been increasing year on year, with 20,267,832 registered vehicles in 2021, 20,687,047 in 2022, and 21,168,462 in 2023. New South Wales had the highest number of registered motor vehicles in 2023, with 6,154,814, while the Northern Territory had the fewest, with 166,110.
In terms of vehicle sales, 2023 saw a record-breaking year, with more new cars sold in Australia than ever before. The combined new and used car market in the country sold almost 3.3 million cars. While used cars outsold new cars, the new car market experienced significant growth, with slightly more people buying new cars in 2024 compared to 2022. The most popular type of car owned by Australians in 2024 is the SUV, which took over from sedans in 2022. Additionally, more people are driving hybrid cars, while fewer are driving unleaded petrol vehicles.
The average Australian typically keeps the same car for five to ten years, with those in South Australia being the most likely to keep their cars for longer periods, often exceeding a decade. The majority of those aged 18 to 27 tend to keep their cars for one to five years. The pandemic has also influenced car-buying habits, with 41.2% of respondents who purchased their car after 2021 stating that the pandemic made the process more challenging and expensive.
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Frequently asked questions
Data on the number of cars manufactured in Australia each year is unavailable. However, as of January 2023, there were over 21 million registered vehicles in the country, with approximately 15.33 million passenger vehicles.
The Phaeton, built in 1896 by Herbert Thomson and Edward Holmes of Armadale, Melbourne, was the first car built in Australia. It was a steam-powered car with a 5 horsepower single-cylinder engine.
The Tarrant, built in 1901 by Harley Tarrant in Melbourne, was the first petrol-powered car manufactured in Australia.
Several car companies have had manufacturing plants in Australia over the years, including Ford, Nissan, Mitsubishi, and Volkswagen. However, many of these plants have since closed, with Ford ending local manufacturing in 2017 and Mitsubishi closing its plant in 2008.
There are no major Australian car brands with a significant market presence. However, there have been small-scale automakers and specialty vehicle producers in the country, such as Corsa Specialised Vehicles (CSV) based in Mildura.
