Australian-Made Cars: Past, Present, And Future

Australia's automotive industry has witnessed a notable evolution, from pioneering car development in its early years to the recent cessation of local manufacturing. The first Australian-made steam car, the Phaeton, debuted in 1896, and the country's first petrol-driven car, the Tarrant, was produced in 1901. Over the years, various manufacturers, including Ford Australia, Holden, and Toyota, contributed to the local industry. However, by 2017, the Australian car market had collapsed, with companies shifting to importing vehicles or closing their production plants. Currently, there is a growing focus on electric vehicles, and Australia is experiencing a surge in demand for international models adapted to suit the local market. While the country's automotive sector is in transition, its future may lie in embracing environmentally-friendly technologies and leveraging its mineral resources to revitalise local manufacturing.

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The first Australian-made cars

Australia has a long history of car manufacturing, which dates back to the late 19th century. The first imported car in Australia is believed to be the Pender-Hertel, which arrived in 1897. However, due to the country's isolation, it was often more practical for Australia to make their own cars.

The first car made in Australia was a steam car. The Phaeton, a 5-horsepower single-cylinder steam carriage, 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.

In 1901, Harley Tarrant produced the first Tarrant automobile, which was the first petrol-driven car built entirely in Australia. Tarrant was joined by bicycle maker Howard Lewis, and the car was powered by a rear-mounted 6 hp Benz engine.

In 1948, the first Australian-designed mass-production car was manufactured by Holden. The Holden 48-215, also known as the FX, was economical, sturdy, and stylish, and it quickly became popular with the public. The Holden transformed post-war Australia, enabling suburbs to spread and creating new forms of shopping, leisure, and work. The Holden became a symbol of personal freedom and national success, and it remains an iconic car in Australia's history.

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Australian car brands today

Australia's automotive industry has witnessed a significant transformation in recent years, with a shift from local car manufacturing to the importation of vehicles. As of 2017, there were no longer any cars being completely made in Australia, marking a decline in the country's once-thriving automotive sector. However, this doesn't mean that the Australian car market is non-existent; there is still a demand for international vehicles to be locally modified to suit Australian conditions and preferences. This has created opportunities for local engineering companies to modify vehicles and adapt them for the Australian market.

Despite the changes in the industry, some Australian car brands have managed to maintain their popularity. Toyota has consistently been one of the most popular car brands in Australia, offering a range of safety features and advanced models. In 2024, the Toyota HiLux was a top-selling model, with impressive sales figures across its 4x2 and 4x4 variants. Other well-known models, such as the Toyota RAV4 and the newer Toyota Corolla Cross, have also gained popularity among Australian drivers.

Hyundai is another brand that has gained recognition in Australia for its advanced technology and superior design features. The Hyundai i30, in particular, has become a favourite choice for Australians looking for a hatchback, even outperforming the Toyota Corolla in sales. Hyundai's Santa Fe and Tucson models have also seen significant boosts in sales, with the former cracking the top 10 best-selling cars in the country.

MG is also a popular choice among Australian car buyers, known for its rich heritage and sleek design. In the electric vehicle (EV) market, Tesla has established a strong presence in Australia, offering unbeatable value for money and trusted performance on the road. Tesla's Model Y has seen impressive sales figures, and the Model 3 is also gaining traction among Australian consumers.

While the Australian automotive industry has faced challenges, there is a growing focus on electric vehicles and a push to revive local car manufacturing. The Australia Institute's Carmichael Centre has proposed leveraging the country's rich mineral resources to develop and manufacture electric vehicles locally. The government is also working on an EV strategy, aiming to provide Australians with access to the latest transport technology while reducing environmental impacts.

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Electric vehicles in Australia

Australia's automotive industry has a long history, with Australian constructors playing a significant role in the early development of cars. However, in recent years, the Australian car market has faced challenges, with global manufacturers shutting down their production plants in the country. As a result, there are currently no cars being completely made in Australia.

Despite this setback, there is a growing focus on electric vehicles (EVs) in Australia. The government is working on an EV strategy and providing incentives to promote the adoption of electric vehicles. The Electric Car Discount exempts zero and low-emission cars from import tariffs and fringe benefit taxes. Additionally, public charging stations for EVs are becoming more widely available, with support from the government.

Several international EV models are available in Australia, offering a range of options for consumers. These include the Tesla Model Y, which became the best-selling car in Europe, and the Nissan Leaf, the first mass-produced all-electric vehicle for the global market. The BMW i3, known for its innovative design and lightweight materials, is another popular choice.

While the Australian car market may be facing challenges in terms of manufacturing, the shift towards electric vehicles presents an opportunity for revival. Australia's rich mineral resources can be leveraged to support the production of electric vehicles locally. With rising petrol costs and the phasing out of traditional combustion engines, electric vehicles are becoming an increasingly attractive option for consumers in Australia.

Local engineering companies are also playing a role in the EV space by modifying international vehicles to suit the Australian market and conditions. This includes converting left-hand drive vehicles to right-hand drive and re-engineering models to meet local standards. As the demand for electric vehicles continues to grow, Australia has the potential to rebuild its automotive industry in an environmentally and socially transformative way.

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Australia's automotive sector decline

Australia's automotive industry developed and survived because of two benefactors: global parent companies and the Australian state. The decline in state support meant greater reliance on parent companies. The problems the parents faced in the aftermath of the global economic crisis made local dependence on them increasingly precarious. The most damaging outcome of the crisis was the shift back to local manufacturing.

The Australian automotive industry's decline occurred within a long-term cycle of new assistance, declining protection, new investment, inadequate restructuring, weak profitability, declining market share, and new assistance. Each cycle, however, was unable to stave off renewed crisis and eventual demise. Over the same period, Australian policy-makers transformed the economy from one of the most protectionist in the developed world to one of the most open.

The neoliberal policy structure in the 1980s and 1990s restricted the range of policy choices available for restructuring the industry. The domestic politics of industry assistance acted to restrict the neoliberal colonisation of the policy agenda. Political imperatives for continuing assistance were shaped by neoliberalism.

The government spent a lot of money to balance automaker books: Holden received 1.8 billion Australian dollars in subsidies and grants between 2001 and 2012; Ford and Toyota each took over a billion. However, profits were tiny and rare, and losses were massive and routine. Ford succumbed in 2013, which made it even harder for Holden and Toyota to survive; with so few manufacturers, equipment and supplier costs went up.

In 2017, mass vehicle assembly in the country ceased altogether, as the last global automakers operating in the country closed their final plants, with negative spillover effects along the automotive manufacturing supply chain. After 2017, Australia became the only major industrial country with no vehicle assembly. This decline has been attributed to factors such as high manufacturing and labour costs, a mining boom, retreating government support, and the Toyota Production System.

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Future of Australian car manufacturing

Australia has a long history of car manufacturing, with the first Australian-made car being produced in 1896. However, in recent years, the Australian car market has struggled, with many global car manufacturers shutting down their Australian production plants. High manufacturing and labour costs, as well as the country's isolation, have been blamed for the industry's demise.

Despite this, there is a glimmer of hope for the future of Australian car manufacturing. There has been a spike in demand for international vehicles to be locally modified to suit the Australian market and conditions. This has created a steady revenue stream for local engineering companies, such as Segula Technologies Australia and The Walkinshaw Group.

In addition, there is a growing focus on electric vehicles (EVs) in Australia. A report by the Australia Institute's Carmichael Centre suggests that Australia's rich mineral resources can be used to manufacture electric vehicles locally. The government is also working on an EV strategy and options for fuel efficiency standards.

Melbourne-based engineering firm Premcar is also playing a significant role in the future of Australian car manufacturing. Premcar has been working on plans to convert thousands of Australia's best-selling vehicles, such as the Toyota HiLux and Ford Ranger, into electric versions. This project aims to reduce the carbon footprint of these vehicles and give them an additional 10 years of service life.

While there are no cars currently being completely made in Australia, the combination of local engineering modifications and the growing focus on electric vehicles could potentially revive the Australian car manufacturing industry in an environmentally and socially transformative way.

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