Australia: New vehicle sales are estimated to reach 1 million again in 2010

Toyota and Ford to produce environmentally friendly engines while Holden to manufacture Cruze compac

2011/01/04

Summary

  Sales volume of vehicles in Australia surpassed 1 million-mark for the two consecutive years in 2007 and 2008 and remained at the level of 940,000 in 2009, due to the effect of the government's tax reduction for purchase of vehicles for business use despite the continuing recession in the economy. In the January-November period of 2010, sales volume amounted to 950,000, which is expected to surpass 1 million-mark for the full year for the first time in two years.

  In Australia, sales of import vehicles increased, which accounted for more than 80% of the domestic sales volume in 2007 and after. Production volume of vehicles in Australia (including vehicles made by Mitsubishi, which withdrew from local production in Australia in March 2008) declined from 320,000-330,000 in 2007-2008 to slightly more than 220,000 in 2009 (production in January-November 2010 remained at 226,000, or up by 11.0%).

  The Australian government announced a plan in which it will reduce tariffs for import vehicles from 10% in 2005-2009 to 5% as planned in January 2010, while it will provide $6.2 billion (Australian dollars)(All dollars in the following are Australian dollars) for the development and production of eco cars by 2020 (announced in November 2009). It intends to maintain the development and production structure for vehicles in Australia by enhancing export competitiveness.

  Under these circumstances, three OEMs that manufacture vehicles in Australia are planning to utilize the Australian government's Green Car Innovation Fund (some of the above $6.2 billion) to develop and produce eco cars and engines.

  In December 2009, Toyota started production of Camry Hybrid. It will also produce a new 4-cylinder 2400cc engine with improved environmental performance and fuel economy starting in the second half of 2012, supplying the product to its production facilities in the ASEAN region. Ford will manufacture an in-line 6-cylinder 4000cc engine which meets Euro Ⅳ emission standard and a 4-cylinder 2400cc Ecoboost engine. As for finished vehicles, Holden will begin local production of the Cruze compact car in 2011, whereas Ford withdrew its plan to produce the Focus locally, which it had announced in 2007. Ford will supply the model from a new plant that it will construct in Thailand.



The 2010 sales are estimated to reach 1 million again

  In Australia, sales volume of vehicles (including commercial vehicles) surpassed 1 million-mark for two consecutive years in 2007 and 2008.

  At the beginning of 2009, FCAI (Federal Chamber of Automotive Industries) forecast that the 2009 sales would be 880,000. The actual sales volume was increased to 937,328 due to the Australian government's incentive package for purchase of vehicles. Among the brands, Toyota sold 200,991, ranked first for seven consecutive years.

  In 2010, sales totaled 948,987 between January and November (up 11.8% year-on-year). The full year results are estimated to amount to 1 million-mark again.

Australia's auto production and new vehicle sales

(units)
  2004 2005 2006 2007 2008 2009 Jan.- Nov. 2009 Jan.- Nov. 2010
Production Total 405,314 388,985 326,960 334,772 324,118 223,354 203,912 226,436
Toyota 109,476 109,212 111,465 148,931 141,467 101,721 n.a. n.a.
Holden 164,041 152,966 124,046 106,496 118,022 67,086
Ford 111,011 108,217 81,466 68,578 62,336 54,547
Mitsubishi 20,786 18,590 9,983 10,767 2,293 0 0 0
Sales Total 955,229 988,269 962,666 1,049,982 1,012,164 937,328 848,620 948,987
Imported Ratio of imports 680,690 71.3% 739,357 74.8% 761,043 79.1% 849,497 80.9% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Source: FCAI (Federal Chamber of Automotive Industries) (Note) Figures include heavy-duty commercial vehicles.

Australia: Top 10 best-selling brands of new vehicle sales

(units)
  2004 2005 2006 2007 2008 2009 Jan.-Nov. 2009 Jan.-Nov. 2010
Toyota Holden Ford 201,737 178,027 135,172 202,817 174,464 129,140 213,847 146,511 114,965 236,647 146,680 108,071 238,983 130,338 104,715 200,991 119,568 96,501 179,977 105,264 86,014 193,778 122,479 88,065
Mazda Mitsubishi Nissan 55,560 53,670 63,654 66,520 57,776 56,032 63,664 54,175 53,392 77,734 65,397 60,015 79,826 60,692 59,214 77,739 56,998 52,901 69,926 50,189 47,787 77,788 57,327 57,115
Honda Hyundai Subaru VW 36,474 42,510 23,619 10,754 47,001 48,010 36,044 15,782 54,202 46,523 37,520 21,571 60,529 50,007 38,445 27,400 52,571 45,409 38,492 29,875 41,443 63,207 36,506 30,087 37,925 56,168 33,576 28,011 37,096 74,161 37,285 35,269
10 brands Total 801,177 833,586 806,370 870,925 840,115 775,941 694,837 780,363
Other brands 154,052 154,683 156,296 179,057 172,049 161,387 153,783 168,624
Total 955,229 988,269 962,666 1,049,982 1,012,164 937,328 848,620 948,987
(Note)  Based on FCAI press release. Figures include heavy-duty commercial vehicles. Toyota figures do not include Lexus brand cars. Hyundai figures do not include Kia brand cars (In January-November 2010, Kia sold 22,125 and the Hyundai group sold 96,286).

 

■Passenger car market: Sales of "Large" passenger cars halved while those of "Light" and "Small" segments increased

  In Australia, the percentage of sales of passenger cars declined from 64.7% in 2003 to 57.0% in the January-November period of 2010. Under such conditions, sales of the "Large" segment passenger cars, to which the Commodore and the Falcon (locally made by Holden and Ford) belong, halved from 200,000 in 2003.

  On the other hand, the percentage of SUVs has increased. Among passenger cars, the demand for "Light" and "Small" segments is strong, which is a factor for increased sales of import vehicles.

  Holden launched the Cruze in June 2009. It sold 2,721 in November 2010, which was ranked fifth in the best-selling models. Holden says that diversity of its products is the key to increase in sales.

Australia's sales of vehicles by vehicle type

(units, %)
  2003 2005 2007 2009 Jan.-Nov. 2009 Jan.-Nov. 2010
Sales Passenger 588,511 608,804 637,019 540,562 493,939 541,083
SUV 150,578 180,292 198,176 188,153 168,537 216,730
Commercial 170,722 199,173 214,787 208,613 186,144 191,174
Total Market 909,811 988,269 1,049,982 937,328 848,620 948,987
Ratio of type Passenger 64.7% 61.6% 60.7% 57.7% 58.2% 57.0%
SUV 16.6% 18.2% 18.9% 20.1% 19.9% 22.8%
Commercial 18.8% 20.2% 20.4% 22.3% 21.7% 20.2%
Total Market 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Source: FCAI (Note)"Commercial" includes heavy-duty commercial vehicles.

Australia's sales of passenger cars by segment

(units)
  2003 2005 2007 2009 Jan.-Nov. 2009 Jan.-Nov. 2010
Sales Light 76,716 90,731 127,891 116,460 106,642 125,964
Small 175,651 215,324 232,388 213,988 196,301 218,800
Medium 47,164 51,833 92,579 76,638 69,534 74,761
Large 203,524 153,244 139,677 101,701 92,081 90,580
Upper Large     9,346 3,592 3,357 3,131
People Mover 11,852 15,738 16,202 11,032 10,057 11,679
Sports/Prestige 73,604 81,934 18,936 17,151 15,967 16,168
Total 588,511 608,804 637,019 540,562 493,939 541,083

Australia's top 10 best-selling models in 2009

(units)
2009 November 2010
1-5th places 6-10th places 1-5th places
Holden Commodore 44,387 Hyundai i30 21,414 Toyota Corolla 4,536
Toyota Corolla 39,013 Mitsubishi Lancer 21,362 Holden Commodore 3,771
Toyota Hilux 38,457 Toyota Camry 20,846 Toyota Hilux 3,241
Mazda3 35,298 Hyundai Getz 19,643 Mazda3 2,980
Ford Falcon 31,023 Toyota Yaris 19,447 Holden Cruze 2,721

Source: FCAI (Note) In 2003, 100,344 units of Holden Commodore and 93,432 units of Ford Falcon were sold.

   



Tax break by the Australian government to purchasers of vehicles for business use

  As part of measures against the economic crisis that started in 2008, the Australian Parliament started to give a tax deduction for investments in eligible assets for business use including vehicles in May 2009. FCAI said that, among the 937,328 vehicles sold in 2009, about 57,000 are benefited from this program.

 

A tax break for investments in assets for business use including vehicles

 

  In May 2009, as part of measures against the economic crisis that started in 2008, the Australian government began to give a tax deduction of 50% of the cost of eligible tangible fixed assets (including vehicles for business use) to small business entities (turnover of less than $2 million a year) and of 30% to general business entities.
Small business entities   A tax deduction of 50% of the cost (more than $1,000, tax excluded) of eligible new tangible depreciating assets where the business commits to investing in the asset between 13 December 2008 and 31 December 2009 and first uses the asset, or installs it ready for use, on or before 31 December 2010.
General business entities   Other business entities (turnover of $2 million or more a year) can claim a tax deduction of 30% of the cost (more than $10,000) of eligible new tangible depreciating assets where the business commits to investing in the asset between 13 December 2008 and 30 June 2009 and first uses the asset, or installs it ready for use, on or before 30 June 2010.
  A tax deduction of 10% of the cost of eligible new tangible depreciating assets where the business commits to investing in the asset between 13 December 2008 and 30 June 2009 and first uses the asset between 1 July 2010 and 31 December 2010.
  A tax deduction of 10% of the cost of eligible new tangible depreciating assets where the business commits to investing in the asset between 1 July 2009 and 31 December 2009 and first uses the asset on or before 31 December 2010.

Source: Australian Government "Small business and general business tax break " (2009.5.12)

  

 



Australian government announced to support the auto industry by providing $6.2 billion over ten years

  The Australian government announced that it had finally decided to lower tariffs for import passenger cars from 10% to 5% as planned starting in January 2010 and would also provide $6.2 billion to support the auto industry including $1.3-billion "Green Car Innovation Fund" by 2020 (announced in November 2009).

  The government says that it will support the auto industry's maintaining and advancing the development and production functions in Australia through the enhancement of development and manufacturing of eco cars and by winning global competition.

 

$6.2-billion "A New Car Plan for A Greener Future"

 

In November 2009, the Australian government decided that it would provide $6.2 billion by 2020 in order to support the development of eco cars and powertrain by the auto industry and to enhance global competitiveness. With this program, the government expects to generate a $16 billion environment-related investment in the auto industry in Australia during the period of this program.
Green Car Innovation Fund   The government will enhance the existing plan to support the development and production of environmental technologies. It takes one quarter of the cost of a project for development and production of eco cars, providing $1.3 billion during the ten years from 2009.
Automotive Transformation Scheme   The government provides $3.4 billion in 2011-2020 to "The Automotive Transformation Scheme," in which it aims to enhance the structure of the auto industry. By strengthening R&D and production structures, the government promotes export from Australia.
Other   Through consolidation in the parts sector, the government aims to enhance the structure of auto-parts industry ($116.3 million). Promotion of widespread use of LPG vehicles ($10.5 million), etc.
Source: Australian Government press release (2009.11.10)
(Note) The basic policy of the Australian government's support package for the auto industry is as follows:
1. The automotive industry in Australia is an important industry that is worth $7.7 billion and employs more than 60,000 workers. In addition, as an export industry, it has already earned more foreign currency than wool, wheat, and beef.
2. Building a modern car involves almost every advanced technology and plays an important role in improving the level of R&D of Australia's entire industry. There are only 15 or so countries in the world which are capable of developing and producing vehicles; Australia hopes to continue to be among such countries.
3. Huge investment is necessary in the future for Australia's auto industry to continue and to develop. In order to invite investment, the Australian government needs to show clear intention and plan, and to win confidence in the future of Australia's auto industry, which is why the government decided to provide this large-scale support.
4. The government expects that this decision will generate at least $16 billion investments in new facilities and technologies during the period of this program and that OEMs, which are currently producing vehicles in Australia, will develop models based on global platforms and will enhance competitiveness to increase exports.
5.

For further details of the Australian government's past auto industry policy and FCAI's recommendation announced in May 2008, please refer to "Australian New Vehicle Market : Tops One Million Units with Imports Accounting for Over 80%" .

 



Toyota ranked first in sales in Australia for seven consecutive years in 2003-2009

  Toyota vehicles were sold most in Australia for seven consecutive years from 2003 to 2009; 200,000 have been sold a year for six years in a row since 2004. In 2010, sales volume is also expected to surpass 200,000. In 2009, 4 models were ranked among the top ten best-selling models (Corolla 39,013, Hilux 38,457, Camry 20,846, and Yaris 19,447).

  Toyota has a production capacity of 147,000 a year; it produced slightly more than 140,000 in 2007-2008, while it only manufactured slightly more than 100,000 in 2009.

  Toyota started exporting the product from Australia to Middle East in 1996 and since then has been increasing exports. It is currently exporting about 70% of the production volume, making Australia into a production and export base for Middle East and Oceania.

Toyota's auto production and new vehicle sales in Australia

(units)
  2004 2005 2006 2007 2008 2009 Jan.-Nov. 2009 Jan.-Nov. 2010
Production 109,476 109,212 111,465 148,931 141,467 101,721 n.a.
Sales Toyota 201,737 202,817 213,847 236,647 238,983 200,991 179,977 193,778
Lexus 5,009 6,005 7,162 8,199 5,912 5,421 5,416 5,976
Total 206,746 208,822 221,009 244,846 244,895 206,412 185,393 199,754

Source: FCAI

 

Toyota launches Rukus (Japanese name: Corolla Rumion) in June 2010, targeting young families

 

  In June 2010, Toyota launched the Rukus (Japanese name: Corolla Rumion). It aims to expand sales to young couples and families that are sensitive to the trend, who have not considered purchasing Toyota vehicles so far. The Rukus comes with a 2400cc engine with fuel consumption of 8.8 liters/100km (ADR 81/20 combined cycle). It is also equipped with 6 airbags and Stability Control as standard equipment.
  According to the announcement two months after the launch, 55% of the purchasers are in their 20s to 40s and more than half shifted from non-Toyota vehicles.

Source: Toyota Australia press release (2010.6.1/2010.7.23)

 

■Supported by the Australian government, Toyota produces Camry Hybrid and a new engine

  In December 2009, Toyota started producing Camry Hybrid. In addition, it will begin production of a new 2400cc engine in the second half of 2012, supplying it to the Camry/Camry Hybrid, which it produces in Australia, and also to its production facilities in the ASEAN region. The Australian government is said to provide $35 million for the production of Camry Hybrid and $63 million for the production of the new engine.

 

Toyota starts production of Camry Hybrid in Australia

 

  In December 2009, Toyota held a line-off ceremony for Camry Hybrid at its Altona plant in Australia. It produces 10,000 units of Camry Hybrid a year, exporting 300 to New Zealand. The Australian government is said to provide $35 million for the production of Camry Hybrid from Green Car Innovation Fund.  Australia has become the fifth country that produces hybrid vehicles in the world following Japan, USA, China, and Thailand.

Source: Toyota press releases (2008.6.10/2009.12.11)

Toyota supplies a new engine that it manufactures in Australia to its production facilities in ASEAN

 

  In September 2010, Toyota announced that it would invest $300 million to start production of a new 2400cc gasoline engine with excellent emission performance and fuel economy at its Altona plant in Australia in the second half of 2012, supplying it to Camry/Camry Hybrid, which it manufactures in Australia, and to the same models that it produces in the ASEAN region. The Altona plant is capable of producing 100,000 engines a year (normal shift) and is currently producing a 4-cylinder 2400cc engine that is used in the Camry. It produced 75,940 in 2009 and will manufacture more than 100,000 a year starting in 2012.
  Toyota says that, with this decision, it will enhance its production base and export competitiveness of Toyota Australia and will improve the efficiency of and strengthen its production and supply structure in Asia-Pacific region.
Source: Toyota press release (2010.9.10), Toyota Australia press release (2010.9.14)
(Note) 

Toyota says that the strong support by the Australian government and the Victoria State has made this investment possible.

  

 



Holden introduces 10 new models within 20 months from September 2010

 

  GM's subsidiary Holden markets products such as Commodore/Calais/Caprice/Captiva - large cars that it produces locally in Australia - , Epica midsize car (that comes with a V6 2500cc engine), Barina/Cruze compact car, and Ute/Colorado LCV.

  It launched Series II Commodore, which underwent a minor change, in September 2010, and Barina Spark (a compact car with overall length of 3595mm) in October. Including these two models, it will introduce 10 new models within the 20 months until mid 2012.

 

  Holden's large car, Commodore, maintains its position as the best-selling model for 15 consecutive years including 2010, while sales of Barian Spark and the Cruze are strong; Holden says that diversity of the products leads to increase in sales. Holden intends to enter into almost all the segments in Australia.

 

  Holden will additionally make available a hatchback version of the Cruze at the end of 2010, starting local production of the Cruze series in Australia in 2011 (This is the first local production of a compact car in Australia).

  In September 2010, Holden announced that it would resume export to Brazil, which it suspended for about two years (Holden Commodore is marketed as Chevrolet Omega).

Holden's auto production and new vehicle sales in Australia

(units)
  2004 2005 2006 2007 2008 2009 Jan.-Nov. 2009 Jan.-Nov. 2010
Production 164,041 152,966 124,046 106,496 118,022 67,086 n.a.
Sales 178,027 174,464 146,511 146,680 130,338 119,568 105,264 122,479

Source: FCAI

 

Holden's introduction of new models

 

Series II Commodore   The Commodore underwent a minor change in September 2010 and was released as Series II. The new model has improved fuel consumption of a V6 SIDI (SIDI is short for Spark Ignition Direct Injection. It was made available starting in September 2009) 3000cc/V8 6000cc engine by 2-3% and has become capable of running on E85(Ethanol 85%).   In addition, a touch-screen system, Smart multimedia technology, is introduced.
  Holden Commodore is the best-selling model in Australia for 14 consecutive years until 2009 and is also expected to be so in 2010.
Barina Spark   In October 2010, Holden launched Barina Spark (5-door hatchback). The Barina Spark is Holden's first offering in small city car or light car segment with overall length of 3595mm and overall width of 1597mm. It comes with a 1200cc engine and a 5-speed MT. The Barina Spark is based on Aveo's platform and is designed by Holden, and is produced by Korea-based GM-Daewoo. The price ranges from $14,490. The model appeals to new-generation young customers with its fresh and energic design.
  The Barina Spark is smaller than the currently-marketed Barina (which comes with a 1600cc engine. The hatchback version is 3920mm in length and 1680mm in width) and is the smallest model that Holden markets. Holden aims to increase sales by strengthening its product lineups in this segment where the scale of the market is rapidly expanding. Holden pays attention to safety and has made available Electronic Stability Control and 6 airbags as standard equipment.
Cruze hatchback   The Cruze hatchback is a compact car (4597mm in length and 1788mm in width)that is one-rank higher than Barina Spark; it comes with an 1800cc engine. Sales of the Cruze sedan, which was released in June 2009, have steadily been increasing and Holden will additionally start marketing a hatchback version that it designed at the end of 2010. In 2011, Holden will start local production of the sedan and the hatchback in Australia, which will be the only compact car to be manufactured in Australia.
New Captiva   The interior and exterior are completely updated. The New Captiva will be launched in 2011.
Holden Volt   To be launched in 2012.

Source: Holden press releases (2010.9.1/2010.10.16/2010.10.20/2010.11.4)

 

 



Ford starts local production of Ecoboost engine in Australia in 2011 while it withdrew a plan to manufacture Focus locally

  Ford maintains its third position in sales ranking in Australia, but halved its production in 2009 (54,547) from 110,000 in 2004.

  In July 2009, Ford withdrew its plan to produce the Focus in Australia, which it had announced in July 2007. Ford will supply the model from a new plant that is currently under construction in Thailand (The new Thai plant is planning to produce 150,000 units of the Focus starting in 2012 and to export 85% of them mainly to Asia and Oceania).

  Ford says that it will concentrate investment in Australia on its core products, the Falcon and the Territory, which it produces in Australia.

Ford's auto production and new vehicle sales in Australia

(units)
  2004 2005 2006 2007 2008 2009 Jan.-Nov. 2009 Jan.-Nov. 2010
Production 111,011 108,217 81,466 68,578 62,336 54,547 n.a.
Sales 135,172 129,140 114,965 108,071 104,715 96,501 86,014 88,065

Source: FCAI

 

Ford Australia developed New Ranger and exhibited it at the Sydney Motor Show

 

  Ford Australia is in charge of the development of light-duty pickup trucks in the Ford group. It developed the new Ranger, the first truck under One Ford product development plan, jointly with Mazda and also with support by the Australian government and the Victoria State government, and exhibited the model at the Sydney International Motor Show in October 2010. Ford will begin production at AutoAlliance Thailand, which is a joint venture with Mazda, in 2011, and then will start production in South Africa and Argentina.
  The new Ranger has achieved performance that a pickup truck inherently has and passenger car-like interior and ride comfort at the same time. It comes with a 4-cylinder 2500cc gasoline engine, 4-cylinder 2200cc and in-line 5-cylinder 3200cc diesel powered engine.

Source: Ford press release (October 15, 2010) (Note) Mazda also showcased Mazda BT-50, which it jointly developed with Ford, at the Sydney Motor Show.

 

  Ford announced that it would invest $230 million in the production of a 4-cylinder 2000cc Ecoboost engine. In addition, it will continue operations of its Geelong engine plant, which it had announced in July 2007 to close, and produces an in-line 6-cylinder engine that meets Euro Ⅳ emission standard. Ford says that the development and production of these engines with excellent environmental performance will be supported by the Australian government's Green Car Innovation Fund.

 

 

Ford Australia produces Ecoboost engine locally in Australia to use in Falcon

 

  Ford will invest $230 million in the production of 4-cylinder 2000cc Ecoboost engine in Australia, and start using it in the Falcon in 2011. The Ecoboost engine is a direct-injection turbo gasoline engine that has improved fuel consumption by 20% from the current model and reduces CO2 emissions by 15%. This is the first time Ford uses the Ecoboost engine in a rear-wheel-drive vehicle.

 

Ford Australia started production of a inline 6-cylinder engine that meets Euro IV emission standard

 

  In July 2007, Ford announced that it would close its Geelong plant and discontinue production of an in-line 6-cylinder engine and would shift to V6 engine that the Ford group produces globally. Yet, in November 2008, it announced a plan to continue operations of the plant and to produce a new engine.
  Ford will invest $21 million in the Geelong engine plant to start production of an in-line 6-cylinder 4000cc engine that meets Euro IV emission standard in the middle of 2010, beginning to use it in the Falcon, the Falcon Ute, and the Territory.
  Customers of the Falcon can choose a new in-line 6-cylinder engine as well as Ecoboost engine starting in 2011. In 2010, Ford has made LPG engine available for vehicles for business use including taxis.

Ford invests $20 million in the casting plant in Geelong to update facilities

  Ford announced that it would invest $20 million in its Geelong casting plant in Victoria State to update facilities. This investment is added to the $230 million investment for the production of the Ecoboost engine, etc.
  Ford once considered transferring the casting plant to China, but with this decision, an important know-how for the production of vehicles remains in Australia.
  The casting plant produces cylinder blocks to be used in an in-line 6-cylinder gasoline engine that meets Euro IV emission standard and also supplies brake parts to Bosch Chassis System Australia on the contract.

 Source: Ford Australia press releases (2009.7.24/2009.11.20)

  

 



Mitsubishi discontinued local production in Australia, but has maintained its sixth position in sales by brand

 

  In March 2008, Mitsubishi discontinued production in Australia. It mainly sells the Lancer and the Triton (pickup trucks that it produces in Thailand) and is ranked sixth in terms of sales by brand in 2009 full-year and in the January-November period of 2010.

  In July 2010, it shipped 40 units of the i-MiEV to Australia, starting to lease them.

Mitsubishi's auto production and new vehicle sales in Australia

(units)
  2004 2005 2006 2007 2008 2009 Jan.-Nov. 2009 Jan.-Nov. 2010
Production 20,786 18,590 9,983 10,767 2,293 0 0 0
Sales 53,670 57,776 54,175 65,397 60,692 56,998 50,189 57,327

 Source: FCAI

 

 

 



Hyundai moved up to fifth in sales by brand due to contribution of sales of Hyundai i30

 

  Hyundai had been ranked eighth in terms of sales by brand until 2008, but moved up to fifth beginning in 2009. It sold 74,161 between January and November 2010; among its models, the i30, 27,786 units of which were sold, made a large contribution; in addition, 19,970 units of the Getz were sold (the i30 is a hatchback based on the Elantra (Toyota Corolla/Mazda3/Mitsubishi Lancer-class model) and was designed in Europe and launched in 2007).

 



Mid-term Production Forecast by IHS Global Insight

Australia : Light vehicle production by Country (IHS Global Insight Forecast)

(Unit)

Group Brand 2008 2009 2010 2011 2012 2013 2014 2015
FORD FORD 61,763 51,001 61,078 64,827 71,351 71,848 70,227 72,952
GM HOLDEN 101,188 65,553 68,196 105,670 119,760 120,940 120,761 124,459
PONTIAC 15,750 20,628 0 0 0 0 0 0
MITSUBISHI MITSUBISHI 2,296 0 0 0 0 0 0 0
TOYOTA TOYOTA 141,451 86,172 121,725 129,363 148,430 153,443 154,882 150,688
Total 322,448 223,354 250,999 299,860 339,541 346,231 345,870 348,099

Source: Global LV Production Data (as of 3 Dec. 2010)

  • (Note)
  • 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
  • 2. Figures for 2008 and 2009 indicate actual production results.
  • 3. All rights reserved. Reproduction of any data will require permission of IHS Global Insight.

* Forecast figures may differ due to difference in the date released.

Industry and Production Outlook - Light Vehicles: Outlook for Light-Vehicle Production

The limited size of Australia’s market will not support production of a comprehensive model range to fully exploit economies of scale. The justification for maintaining the limited production has been the extended shipping distances, importation tariffs, and local demand for large sedans.

The mainstay of domestic production has always been the large sedan, a vehicle similar to North American sedans, and even exported to North America. Holden and Ford are still heavily dependent on these vehicles that are equally well adapted to cover large distances in comfort and reliability, although demand for this segment is decreasing.

Over the past few years, tariff reductions and the high value of the currency have increasingly drawn in import models. In contrast to the domestic manufacturers, the overseas firms usually enjoy the cost advantages of economies of scale at home. Although this is a major threat to the domestic industry, the principles of free trade offer the same opportunities to the Australian automotive industry to raise production efficiency by exporting additional volume. So far, however, only Toyota has managed to achieve high volume exports, with Holden beginning to see more exports.

The Australian export products fall into two types: models designed for the domestic market and sold into market niches overseas, and global models that are sold in geographically close markets. Indeed, the New Zealand market can be thought of as an extension of the home market. In 2009, total exports fell below 100,000 units.

Ford Production Plummets

Ford is looking to broaden the appeal of the Falcon and Territory ranges with the possibility of four cylinder gasoline (petrol) engines and a diesel option from 2010. The long-term future of the model range is in doubt with Ford in North America focusing its scarce resources on front-wheel-drive platforms. There is some speculation that the next generation Falcon will therefore be based on a Taurus.

From 2010, it had been hoped that production of the Focus would enhance local sales and find export sales throughout the region. The plan has now been cancelled, with the domestic market being fed by imports from Thailand.

Production for 2010 will see a slight increase over 2009 as the economy recovers. We will see a 15.8% increase in 2011, based on rising Falcon sales.

Holden Looks to Small Car Production

Holden 2010 production will increase 15.4% over 2009 on the strength of the Commodore launch. With the Chevrolet Caprice Police Patrol Vehicle and the Holden Cruze being added to production in 2011, output will increase 50% over 2010.

Export volume will be seen in the Holden Caprice badged as the Chevrolet Caprice Police Patrol Vehicle beginning in 2011 to replace the aging Ford Crown Victoria in the United States.

Toyota Plans Camry Hybrid from 2010

While Toyota has been the largest vehicle assembler in Australia thanks to its export strength, export growth will see GM pass Toyota in 2011. Around 35% of Aurion production is for export and over 80% of Camry production is shipped overseas.

Apart from New Zealand, the main export markets are South Africa and the Middle East. We expect the Australian operation to retain its strategic importance within Toyota and as such the export proportion will remain stable.

Production of the Camry Hybrid began in early 2010 with the aid of A$35 million of government grants as part of the Green Car Innovation Fund. Production is expected to be around 10,000 units a year.

Output for 2010 will be up 31.0% over 2009, with an additional increase of 9.3% in 2011.

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