Lyla Lindsey
Japanese cars have been popular in Australia since the 1950s, when they first entered the market. In 1958, the first Japanese car to reach Australian shores was a Datsun. By 1968, a dozen Japanese car brands were established in the country. Japanese cars were initially cheaper and more reliable than their British and Australian competitors. While the market share of Japanese cars in Australia has been declining in recent years due to the rise of Chinese car brands, Japan was still Australia's biggest source of cars as of 2024, with almost one-third of all cars sold being made in Japan.
| Characteristics | Values |
|---|---|
| Japanese car brands in Australia | Suzuki, Subaru, Toyota, Mitsubishi, Nissan, Lexus, Isuzu, Honda |
| Australia's biggest source of cars | Japan |
| Market share of Japanese cars in Australia | 27.3% (2023), 32.5% (2014), 38.3% (2005) |
| Top Japanese car model in Australia | Toyota RAV4 SUV |
| Australia as an export market | Japanese manufacturers used Australia as a trial export market before expanding to the US and Europe |
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What You'll Learn
Japanese cars were Australia's first import from Asia
Japanese cars were initially very affordable in Australia, which led to them being treated as disposable. However, by the mid-1960s, most Japanese cars were well-rated, and local assembly of some models began in 1966. In the last 19 years, the average yearly market share of Japanese-made cars in Australia has been 32.7 per cent, with the highest figure being 38.3 per cent in 2005.
In 2023, Japanese cars accounted for 27.3 per cent of all sales, with 124,535 units out of a market-wide total of 456,833. While this made Japan Australia's biggest source of vehicle imports, the market share was the lowest since 2005. This coincided with a spike in deliveries of cars made in China, which accounted for 72,619 units in 2023, an increase of almost 80 per cent year-on-year.
In 2024, Japan retained its position as Australia's favourite source of new cars, with almost one-third of all cars sold being made in Japan. This was despite a 9.8 per cent growth in Japanese car sales, compared to an 8.4 per cent decline in sales of Chinese-made vehicles.
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Australia's import regulations and standards
Under the RVSA, it is an offence to import a road vehicle into Australia without obtaining prior approval through the ROVER online application and approval portal. This approval process ensures that vehicles meet the necessary safety and environmental standards, with specific criteria applying to each import type. For example, vehicles must undergo modifications and maintenance procedures, including the replacement of fluids and tyres, and the modification or replacement of components such as lights and mirrors to adhere to Australian Design Rule (ADR) standards.
The RAV is a comprehensive database of vehicles that have met the stringent requirements of the RVS legislation and have been approved for the Australian market. This register replaces the need for vehicle identification plates under the previous MVSA. A non-RAV entry import approval may be suitable for vehicles that will not be used on Australian roads or only in exceptional circumstances, such as for testing, market evaluation, or temporary import.
It is important to note that the import regulations and standards in Australia also depend on the type of vehicle being imported. For example, motorised wheelchairs, quad bikes, or golf carts are not considered road vehicles and therefore do not require road vehicle import approval. However, obtaining an advisory notice from the department can facilitate the clearance of such non-road vehicles through customs.
In addition, Australia's external territories, including Christmas Island, the Cocos (Keeling) Islands, and Norfolk Island, have separate import regulations. While import approval is not required for vehicles entering these external territories, approval is necessary for vehicles subsequently imported into Australia from these territories, with a processing time of up to 60 business days.
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Japanese cars are designed with specific maintenance requirements
The Shaken system encourages Japanese car buyers to prefer newer, smaller cars as they are generally more efficient, safer, and have lower associated costs. This also aligns with the Japanese government's interest in promoting the constant purchase of new cars, generating sales tax and other revenue streams. While the Shaken system ensures road safety and proper vehicle maintenance, it can also be costly, especially for older cars that may require significant repairs to pass the inspection.
Additionally, Japanese car manufacturers have a reputation for producing reliable and low-maintenance vehicles. This perception may be due to the strict Shaken requirements, which incentivize car buyers to adhere to the manufacturer's recommendations for parts replacement. By ensuring that any potentially faulty components are replaced before the next Shaken inspection, dealers can reduce the risk of failures and maintain the safety and reliability of the vehicles.
However, it is important to note that the maintenance cost of Japanese cars can vary depending on the owner's approach. For example, owners who choose to perform repairs and maintenance themselves may be able to reduce costs compared to those who rely solely on authorized dealers or mechanics. Additionally, as Japanese cars age, maintaining them to the required standards can become more expensive, and mechanics may charge higher prices due to the specialized nature of the work.
In recent years, the market share of Japanese cars in Australia has been declining, with a drop in sales of Japanese-made cars coinciding with a spike in deliveries of cars made in China. This shift may be attributed to the lack of EVs coming from Japan, as the growth of electric vehicles in Australia and the increasing demand for more sustainable options influence buyer preferences.
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Japanese cars are still Australia's biggest import
Japan has been Australia's favourite source of cars for decades. As early as 1958, the first Japanese car arrived in Australia after World War 2, a Datsun. By 1968, a dozen Japanese car brands were established in the country, including Suzuki, Subaru, Toyota, Mitsubishi, Nissan, Lexus, Isuzu, and Honda. In 1965, Toyota sold 17,300 vehicles in Australia, making it their strongest export market at the time.
There are several reasons why Japanese cars are so popular in Australia. Firstly, Japan was the first choice for export when Japanese car manufacturers began to explore the world. Australia provided a trial export market before Japanese cars spread to the US and Europe. Secondly, Japanese cars are known for their quality and reliability, with most Japanese cars being well-rated by the mid-1960s. Additionally, the proximity of Japan to Australia may have played a factor, as it is much closer than the US or Europe.
However, there are signs that this may change in the future. The market share of cars sourced from Japan is on track to be the lowest in decades, with supply shortages from Toyota and a rapid increase in imports from China. The lack of EVs coming from Japan may also cause Australian buyers to look elsewhere, as EV sales in Australia are on the rise. Despite this, Japan remains the leading car-making country in Australian showrooms, and it is unclear when or if this will change.
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Japanese cars are cheap to import
Another factor is the historical relationship between the two countries' automotive industries. Japan was Australia's first choice for car exports after World War 2, with the first Japanese light car, a Datsun, arriving in 1958. By 1968, a dozen Japanese car brands were established in Australia, and local assembly of Japanese cars began as early as 1966, with Toyota leading the way. This early entry into the Australian market meant that Japanese cars became a popular and trusted choice for Australian consumers.
Additionally, the availability of cheap Japanese cars in Australia, particularly the Toyota Supra, has contributed to the perception of affordability. The Supra was imported in large numbers and was a popular choice for young, inexperienced drivers due to its low price point. While some of these cars were poorly treated and modified, the overall presence of affordable Japanese cars in the Australian market has likely influenced price expectations.
However, it is worth noting that the market share of Japanese cars in Australia has been declining in recent years, with a drop in sales from 2022 to 2023. This decrease coincides with a rise in imports from China, which have become more affordable and widely available. Despite this, Japan remained Australia's biggest source of cars as of 2024, with almost one-third of all cars sold being made in Japan.
In summary, Japanese cars are cheap to import into Australia due to a combination of geographic proximity, historical market presence, and the availability of affordable models. However, increasing competition from other countries, particularly China, may impact the future dynamics of the Australian automotive market.
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Frequently asked questions
Japanese car manufacturers chose Australia as their first export destination in 1958, a market that was then dominated by US and English brands. This led to a complete reshuffle of the Australian car landscape, with Toyota leading the way.
The first Japanese car to be exported to Australia was a Datsun in 1958, followed by the Hino Contessa, Toyota 2000GT, Toyota Corona, Datsun Cedric, Mazda 1000, Mazda 1500, Toyota Corolla, Datsun 1600 SSS, and the Honda Scamp in 1968.
In 2023, Japanese-made cars accounted for 27.3% of all car sales in Australia, with 124,535 units out of a total of 456,833. This is the lowest market share since 2005.
The market share of Japanese cars in Australia is expected to decline further due to a lack of EVs being produced in Japan. In 2023, none of the top 10 EV sellers in Australia were from Japan, with most coming from China and, to a lesser extent, Korea and Germany.
