Buckle up, because while the Australian automotive industry roared back to life with over 1.2 million new vehicle sales in 2023, this high-octane activity masks a profound and complex evolution from its manufacturing past into an electrified, import-dependent future.
Key Takeaways
- In 2023, total new motor vehicle sales in Australia reached 1,216,735 units, marking a 14.8% increase from 2022.
- Passenger vehicle sales in Australia for 2023 totaled 464,284 units, representing 38.1% of total sales.
- Light commercial vehicle sales hit a record 496,672 units in 2023, up 20.6% year-on-year.
- In FY2022, Australian automotive manufacturing turnover was AUD 28.4 billion.
- Motor vehicle body, trailer, caravan manufacturing employed 12,500 in 2022.
- Automotive component manufacturing output valued at AUD 4.5 billion in 2022.
- The Australian automotive sector directly employed 50,000 workers in 2022.
- Indirect employment supported by auto industry totals 200,000 jobs.
- Average wage in automotive manufacturing AUD 85,000 per annum 2022.
- Vehicle exports from Australia totaled 14,200 units in 2022.
- Automotive exports value reached AUD 5.1 billion in 2022.
- Top export destination USA with 40% of vehicle exports.
- The automotive industry contributed AUD 37 billion to GDP in 2022.
- Total economic multiplier effect 2.5x direct output.
- Government support via tax incentives AUD 1 billion since 2017.
Australia's auto industry saw record sales, especially SUVs, as electric vehicles surged in popularity.
Economic Impact and Investments
- The automotive industry contributed AUD 37 billion to GDP in 2022.
- Total economic multiplier effect 2.5x direct output.
- Government support via tax incentives AUD 1 billion since 2017.
- R&D tax incentive claimed AUD 300m by auto firms yearly.
- Investment in battery manufacturing AUD 2 billion by 2024.
- CATL-Geely JV AUD 1 billion gigafactory announced 2024.
- Export revenue supports 10,000 jobs indirectly.
- Retail sales contribution AUD 100 billion annually.
- Aftermarket industry value AUD 15 billion in 2023.
- Fuel excise tax from autos AUD 12 billion yearly.
- Road user charges for diesels AUD 2 billion.
- EV rebate scheme cost government AUD 400m in 2023.
- Infrastructure spend on EV chargers AUD 500m committed.
- Local content procurement AUD 5 billion yearly.
- Tourism boost from RV sales AUD 3 billion.
- Insurance premiums from vehicles AUD 20 billion.
- Financing for vehicle purchases AUD 50 billion loans outstanding.
- Carbon emissions from autos 80 MtCO2e annually.
- Transition to zero emissions projected AUD 100b investment.
- Supply chain spend AUD 25 billion domestically.
- SMEs represent 90% of auto businesses.
Economic Impact and Investments Interpretation
The Australian automotive industry isn't just about cars; it’s a massive economic engine that, while currently fueled by petrol and tax revenue, is shifting gears towards a battery-powered future at a cost of billions, proving the road to progress is paved with both innovation and significant public investment.
Employment and Workforce
- The Australian automotive sector directly employed 50,000 workers in 2022.
- Indirect employment supported by auto industry totals 200,000 jobs.
- Average wage in automotive manufacturing AUD 85,000 per annum 2022.
- 40% of auto workers hold vocational qualifications.
- Female participation in auto sector at 25% in 2023.
- Youth employment (under 25) 15% of workforce.
- Skilled migration filled 5,000 auto jobs in 2022.
- Apprenticeships in auto mechanics 10,000 active in 2023.
- Unemployment rate in manufacturing 4.5% in 2023.
- Auto electricians jobs grew 10% to 15,000 in 2022.
- Panel beaters employment 8,000 nationwide 2023.
- Diesel mechanics 12,000 employed in 2023.
- Training expenditure AUD 200 million annually in sector.
- Job vacancies in auto repair 20,000 in 2023.
- Victoria employs 40% of national auto workforce.
- NSW hosts 25% of automotive service jobs.
- Queensland auto jobs 15% of total.
- Automation displaced 10,000 jobs since 2017.
- Upskilling programs trained 5,000 workers in EV tech 2023.
- Labour productivity in auto services AUD 120k per worker.
- Union membership 30% in manufacturing.
- Injury rate 5 per 100 workers in auto.
- Part-time workers 20% of auto employment.
- Migrant workers 35% of skilled trades.
- EV technician certifications issued 2,000 in 2023.
Employment and Workforce Interpretation
While Australia's automotive industry runs like a well-oiled machine, employing 250,000 people directly and indirectly with solid wages, it's in the shop for a major tune-up, urgently needing more skilled hands—especially among women and youth—to fill 20,000 vacancies and retool a workforce where automation has taken its toll and the electric future is already rolling into the bay.
Exports and Imports
- Vehicle exports from Australia totaled 14,200 units in 2022.
- Automotive exports value reached AUD 5.1 billion in 2022.
- Top export destination USA with 40% of vehicle exports.
- Component exports to Japan AUD 1.2 billion in 2022.
- Vehicle imports dominated by Japan at 35% share in 2023.
- Total vehicle imports 1.2 million units in 2023.
- Thailand imports grew 25% to 150k vehicles in 2023.
- Used vehicle exports to NZ 20,000 units annually.
- Engine exports value AUD 800 million in 2022.
- Parts exports to ASEAN AUD 900m in 2022.
- Import tariff on vehicles 5% under WTO.
- EV imports 90,000 units in 2023, 90% from China.
- Trade deficit in vehicles AUD 45 billion in 2022.
- Component trade surplus AUD 1.5 billion annually.
- Exports to UK post-Brexit up 10% in 2023.
- Imports from Germany 80k luxury vehicles yearly.
- Korean imports 200k vehicles in 2023.
- Body parts imports AUD 2 billion annually.
- Free Trade Agreement with Japan boosted exports 15%.
- India auto parts imports AUD 500m growing 20%.
- Export growth in aftermarket parts 8% YoY.
- Vehicle import value AUD 50 billion in 2022.
Exports and Imports Interpretation
Though Australia's automotive industry seems to be building a successful export identity as a specialist in high-value components and engines, the colossal trade deficit reveals a nation that has largely become a showroom for imported vehicles, buying nearly a hundred times more cars than it sells while cleverly shipping the vital organs that keep them running.
Production and Manufacturing
- In FY2022, Australian automotive manufacturing turnover was AUD 28.4 billion.
- Motor vehicle body, trailer, caravan manufacturing employed 12,500 in 2022.
- Automotive component manufacturing output valued at AUD 4.5 billion in 2022.
- Number of automotive manufacturing businesses in Australia was 1,200 in 2023.
- Production of motor vehicle parts fell 5% to AUD 3.8 billion in 2022.
- Trailer manufacturing output reached AUD 2.1 billion in 2022.
- Local content in Australian vehicles dropped to 30% by 2017 closure.
- Victoria hosted 60% of automotive component manufacturers pre-2017.
- Annual production capacity post-closure shifted to 500k components.
- In 2021, 15,000 motor vehicles were manufactured domestically (specialty).
- Automotive stamping, pressing output AUD 500 million in 2022.
- Engine and turbine manufacturing turnover AUD 1.2 billion in 2022.
- Electrical equipment for vehicles produced AUD 800 million worth in 2022.
- Plastic parts for autos output AUD 1.5 billion in 2022.
- Steel fabrication for vehicles AUD 2.3 billion in 2022.
- Post-2017, 250 firms remain in component production.
- Investment in advanced manufacturing reached AUD 100 million in 2023.
- Robot density in auto sector 150 per 10k workers.
- R&D spend in auto manufacturing AUD 500 million annually.
- Battery production pilot plants output 1 GWh capacity planned 2024.
- 3D printing in prototypes saved 20% costs in 2023 trials.
- Hydrogen vehicle prototypes numbered 50 in 2023.
- Local EV component production at 10% of market in 2023.
- Forging and casting output for autos AUD 400m in 2022.
- Heat treatment services turnover AUD 300m for autos.
- Automotive manufacturing productivity grew 2% YoY 2022.
- Number of apprentices in auto manufacturing 2,500 in 2023.
Production and Manufacturing Interpretation
For an industry that shed its skin after 2017, leaving a leaner but more innovative core, the Australian automotive sector is now a surprisingly muscular AUD 28.4 billion chameleon, cleverly adapting from mass car assembly into a high-value, specialized, and occasionally futuristic ecosystem of parts, trailers, and niche vehicles.
Sales and Market Share
- In 2023, total new motor vehicle sales in Australia reached 1,216,735 units, marking a 14.8% increase from 2022.
- Passenger vehicle sales in Australia for 2023 totaled 464,284 units, representing 38.1% of total sales.
- Light commercial vehicle sales hit a record 496,672 units in 2023, up 20.6% year-on-year.
- SUV sales dominated with 764,359 units sold in 2023, comprising 62.8% of the market.
- Toyota led sales with 242,308 vehicles sold in 2023, holding a 19.9% market share.
- Ford ranked second with 100,170 units sold in 2023, securing 8.2% market share.
- Mazda was third with 95,215 units in 2023, at 7.8% share.
- In December 2023, monthly sales were 118,319 units, up 1.3% from December 2022.
- Electric vehicle sales surged to 88,000 units in 2023, a 216% increase.
- Plug-in hybrid sales reached 24,000 units in 2023, up 120%.
- Tesla Model Y was Australia's top-selling vehicle in 2023 with 35,947 units.
- Toyota RAV4 sold 40,762 units in 2023, second best-seller.
- Ford Ranger achieved 62,077 sales in 2023, top ute.
- Total vehicle registrations in Australia for 2022 were approximately 1.1 million new vehicles.
- Market share of imported vehicles was 100% in 2023 as local manufacturing ceased.
- Average new vehicle price in Australia rose to AUD 48,000 in 2023.
- Diesel vehicles accounted for 25.4% of sales in 2023.
- Petrol vehicles held 65.2% market share in 2023 sales.
- November 2023 sales were 102,510 units, down 4.9% month-on-month.
- Victorian new car sales in 2023 totaled 330,000 units.
- New South Wales led with 380,000 vehicle sales in 2023.
- Hybrid vehicle sales doubled to 120,000 units in 2023.
- Top-selling SUV segment grew 17% to 764k units in 2023.
- Ute/4x4 sales record 333k units in 2023.
- Small car segment sales fell to 50k units in 2023.
- Large car sales dropped to under 20k in 2023.
- Sports car sales minimal at 5,000 units in 2023.
- People mover sales at 12,000 units in 2023.
- Heavy commercial sales 25k units in 2023.
- 2023 year-to-date sales by October were 1,057,000 units.
Sales and Market Share Interpretation
Australia's roads have officially been taken over by a conquering army of SUVs and utes, leaving the humble passenger car in the dust while electric vehicles stage a quiet but explosive coup from the sidelines.
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