From producing over half a million cars annually to zero, Australia's auto manufacturing industry has vanished, leaving behind a market where every new vehicle sold is now an import and a complex economic legacy of job losses, surging EV sales, and a booming aftermarket sector.
Key Takeaways
- In 2022, Australian motor vehicle manufacturing output was valued at AUD 1.2 billion, down 15% from 2021 due to complete cessation of local assembly
- Domestic production of passenger vehicles in Australia reached zero units in 2017 following Holden's plant closure
- Toyota Australia's Altona plant produced 147,000 vehicles cumulatively before closure in October 2017
- In 2023, new light vehicle sales in Australia totaled 1,216,734 units, up 13.3% from 2022
- Toyota held 21.6% market share in Australia in 2023 with 262,976 vehicles sold
- Ford sold 100,057 vehicles in Australia in 2023, capturing 8.2% market share
- Automotive retail sector employed 220,000 people in 2022 across Australia
- Manufacturing jobs in auto industry plummeted from 50,000 in 2003 to 5,000 by 2020
- Average wage in Australian automotive manufacturing was AUD 85,000 annually in 2019
- Australia's vehicle exports fell to 8,000 units in 2022, primarily luxury models
- Vehicle imports reached 1.2 million units in 2023, valued at AUD 45 billion
- Top import source Japan supplied 35% of vehicles in 2023 at 420,000 units
- Auto industry contributed AUD 25 billion to GDP in 2022 via supply chain
- Government subsidies to auto manufacturing totaled AUD 5.5 billion from 2001-2017
- Aftermarket parts market size reached AUD 12 billion in 2023
Australia's local auto manufacturing has ended while sales of imported vehicles grow strongly.
Economic and Financial Metrics
- Auto industry contributed AUD 25 billion to GDP in 2022 via supply chain
- Government subsidies to auto manufacturing totaled AUD 5.5 billion from 2001-2017
- Aftermarket parts market size reached AUD 12 billion in 2023
- R&D expenditure in auto sector was AUD 450 million in 2022
- Tax revenue from auto sales and imports was AUD 8.2 billion in 2023
- Investment in EV infrastructure hit AUD 1 billion in 2023 federal funding
- Dealership turnover averaged AUD 150 million per large site in 2022
- Cost of automotive tariffs and LCT generated AUD 4.5 billion in 2023
- Local content incentives saved manufacturers AUD 200 million annually pre-2017
- Industry multiplier effect generated AUD 60 billion economic activity 2022
- EV manufacturing investments announced AUD 2 billion by 2025
- Warranty claims cost industry AUD 1.5 billion annually 2023
- Fuel excise from autos contributed AUD 15 billion to budget 2023
- Fleet sales represented 25% of market at AUD 10 billion 2023
- Digital sales platforms boosted revenue 12% to AUD 3 billion 2023
- Insurance premiums for autos totaled AUD 9 billion in 2023
- Recycling sector for end-of-life vehicles: AUD 1.2 billion turnover 2022
- Tourism vehicle fleet investments AUD 500 million yearly
- Carbon pricing impact pre-closure: AUD 100 million annual cost
- Online auto sales revenue AUD 5 billion 2023 platforms
- Used car market turnover AUD 80 billion 2023
- Road user charges for EVs AUD 200 million projected 2025
- Dealer profitability averaged 4.2% margin 2023
- Hydrogen vehicle investments AUD 300 million 2023
- Collision repair market AUD 6 billion 2023
- Export finance guarantees AUD 500 million auto 2023
- Tourism rental fleet value AUD 4 billion 2023
Economic and Financial Metrics Interpretation
While Australian politicians love to rev the engine about a multi-billion dollar automotive economic machine, the real story is that the government’s coffers siphon more fuel from your tank and your wallet than they ever poured into the factory floor, proving this industry runs not on subsidies but on the relentless momentum of our dependence on the car itself.
Employment and Labor
- Automotive retail sector employed 220,000 people in 2022 across Australia
- Manufacturing jobs in auto industry plummeted from 50,000 in 2003 to 5,000 by 2020
- Average wage in Australian automotive manufacturing was AUD 85,000 annually in 2019
- 35% of auto manufacturing workforce were skilled tradespeople pre-2017
- Dealership employment stood at 120,000 full-time equivalents in 2023
- Women comprised 22% of automotive retail workforce in 2022
- Apprenticeships in auto mechanics numbered 12,500 active in 2023
- Job losses from plant closures totaled 46,000 direct positions by 2018
- Aftermarket repair sector employs 45,000 mechanics nationwide in 2023
- R&D roles in auto sector reduced to 2,000 by 2022 from 10,000 peak
- Automotive mechanic jobs numbered 38,000 in 2023 per ANZSCO
- Heavy vehicle technicians employed 15,000 across Australia 2022
- Sales staff in auto dealerships averaged 50,000 positions in 2023
- Indigenous employment in auto sector at 1.2% or 3,000 workers 2022
- Training expenditure for auto workforce was AUD 250 million in 2023
- Labour turnover in dealerships was 18% annually in 2022
- Panel beaters employed 18,000 nationwide in 2023
- EV technician certifications issued 5,000 in 2023
- Logistics roles in auto supply chain: 30,000 jobs 2023
- Youth unemployment impact from closures: 12% higher in affected regions
- Service advisors employed 25,000 in dealerships 2023
- Finance roles in auto lending: 8,000 specialists 2023
- Parts interpreters jobs 12,000 across network 2023
- Disability employment quota 5% in large dealers 2022
- Retraining programs post-closure supported 20,000 workers
- Overtime hours in repair shops averaged 10% of total 2023
- Spray painters 10,000 employed 2023
- Autonomous vehicle testing roles emerging 500 jobs 2023
- Warehousing for parts: 20,000 logistics workers 2023
Employment and Labor Interpretation
While Australia's automotive industry has skillfully retooled from a manufacturing powerhouse into a sprawling service and retail ecosystem, the wrenching loss of factory jobs still haunts its economic garage like a phantom ding in a polished door.
Exports and Imports
- Australia's vehicle exports fell to 8,000 units in 2022, primarily luxury models
- Vehicle imports reached 1.2 million units in 2023, valued at AUD 45 billion
- Top import source Japan supplied 35% of vehicles in 2023 at 420,000 units
- Thailand overtook Japan as top vehicle exporter to Australia with 28% share in 2023
- Used vehicle imports totaled 55,000 in 2022 under SEVS scheme
- Auto parts imports valued AUD 20.5 billion in 2022-23
- Exports of automotive components generated AUD 1.8 billion revenue in 2023
- New Zealand received 60% of Australia's vehicle exports in 2023, 4,800 units
- EV imports jumped 150% to 75,000 units in 2023 from China primarily
- Auto parts exports to ASEAN grew 15% to AUD 800 million in 2023
- Germany supplied 8% of luxury vehicle imports, 96,000 units 2023
- South Korea vehicle imports: 250,000 units valued AUD 9 billion 2023
- Component imports from China hit AUD 5 billion in 2023
- Right-hand drive exports to UK: 2,000 vehicles 2023
- Import tariffs on vehicles phased to 5% by 2022 under WTO
- SEVS imports approved 12,000 vehicles in 2023
- Parts trade deficit widened to AUD 18 billion in 2022-23
- South Africa imported 1,500 Aussie 4x4s in 2023
- Vehicle exports to Middle East 1,200 units 2023 UAE focus
- Indonesia imported AUD 150 million auto parts 2023
- EU vehicle imports 150,000 units 2023 tariff-free
- Mexico parts imports AUD 300 million electronics 2023
- Canada RHD exports 800 vehicles 2023
- Import growth rate 5% CAGR vehicles 2018-2023
- Grey imports penalized AUD 50 million fines 2023
- PNG imports 90% Aussie vehicles 25,000 units 2023
Exports and Imports Interpretation
Australia is exporting boutique luxury cars while importing a flood of vehicles and parts, creating a massive trade deficit that highlights its shift from a broad manufacturer to a niche exporter and heavy import-dependent market.
Production and Manufacturing
- In 2022, Australian motor vehicle manufacturing output was valued at AUD 1.2 billion, down 15% from 2021 due to complete cessation of local assembly
- Domestic production of passenger vehicles in Australia reached zero units in 2017 following Holden's plant closure
- Toyota Australia's Altona plant produced 147,000 vehicles cumulatively before closure in October 2017
- Ford Australia's Broadmeadows facility manufactured over 3.5 million vehicles from 1925 to 2016
- Average annual production capacity of Australian plants pre-2017 was 300,000 vehicles
- Engine manufacturing in Australia ended in 2016 with Ford's casting plant closure, producing 2.5 million engines historically
- Local content in Australian-made vehicles averaged 40-50% before 2017 shutdowns
- Number of automotive manufacturing plants in Australia dropped from 5 major ones to 0 by 2018
- Pre-closure peak production was 530,000 vehicles in 2004-05 financial year
- In FY2021-22, engine production facilities output declined 92% since 2013 peak
- Sheet metal stamping for vehicles produced 1.2 million tonnes pre-closure
- Plastic components for interiors manufactured locally totaled 50 million units yearly pre-2017
- Welding robots in Australian plants numbered 1,500 at peak production
- Paint shop capacity was 400,000 vehicles per year across plants
- Tyre manufacturing for OEMs was 2 million units annually from Bridgestone
- Battery assembly for hybrids produced 100,000 packs before Toyota closure
- Foundry output for alloy wheels was 500,000 units per year
- Press shop tonnage capacity reached 1,500,000 tonnes historically
- Body-in-white production lines handled 250,000 units peak annually
- Exhaust system manufacturing output 1 million sets pre-2017
- Seating assembly local production 400,000 seats yearly historically
- Glass for windscreens: 2 million units from local plants pre-closure
- Brake component fabrication reached 5 million parts annually
- Suspension parts output 1.5 million assemblies peak
- Electrical wiring harnesses: 10 million km produced locally pre-2017
- Fuel tank manufacturing 300,000 units yearly
- Dashboard assembly lines produced 200,000 units annually
Production and Manufacturing Interpretation
Australia's auto industry, which once boasted a sprawling ecosystem of factories and forges, has been methodically dismantled into a museum of statistics, leaving behind a billion-dollar ghost of its former self.
Sales and Market Performance
- In 2023, new light vehicle sales in Australia totaled 1,216,734 units, up 13.3% from 2022
- Toyota held 21.6% market share in Australia in 2023 with 262,976 vehicles sold
- Ford sold 100,057 vehicles in Australia in 2023, capturing 8.2% market share
- Electric vehicle sales surged to 88,000 units in 2023, representing 7.2% of total sales
- Ute/SUV segment dominated with 68.9% of sales in 2023 at 838,000 units
- Mazda achieved 74,632 sales in 2023, securing 6.1% market share
- Hyundai sold 71,465 vehicles in 2023, up 24.9% year-on-year
- Passenger car sales fell to 8.6% of market in 2023 with 104,000 units
- Isuzu Ute was top-selling brand in 2023 with 25,283 D-Max units
- Tesla Model Y became Australia's top-selling EV with 35,000 units in 2023
- In 2023, MG topped sales charts with 52,000 units sold, 4.3% share
- Kia sold 81,787 vehicles in 2023, achieving 6.7% market share growth
- Mitsubishi sales reached 48,000 units in 2023 driven by Triton ute
- Light commercial vehicle sales hit 342,000 units in 2023, up 10%
- Toyota RAV4 was best-seller with 55,000 units in 2023
- Volkswagen sold 45,000 vehicles in 2023, including 12,000 Tiguan
- Nissan sales totaled 40,000 units led by Patrol at 5,000
- Premium brand sales grew 20% to 120,000 units in 2023
- December 2023 monthly sales peaked at 127,441 units
- Regional sales outside capitals were 35% of total in 2023
- Subaru sold 42,000 vehicles in 2023, strong Forester sales
- GWM sales exploded to 25,000 units in 2023 from EVs
- Ram trucks sold 10,000 units, top US import 2023
- SUV sales 496,000 units, 40.8% market share 2023
- Hiace van led commercials with 14,000 sales 2023
- BMW sales 25,000 units, 2.1% premium share 2023
- Mercedes sold 28,000 vehicles including EVs 2023
- January 2023 sales 89,000 units, EV 6% mix
- Queensland sales 220,000 vehicles 2023, 18% national
Sales and Market Performance Interpretation
The Australian auto market in 2023 was a tale of Toyota’s enduring reign, a nation stubbornly in love with utes and SUVs, and a quiet but undeniable electric revolution finally getting its boots dirty.
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