The Australian automotive industry is a story of ups, downs and transformations, reflecting the country’s economic and technological changes. From the first steam carriages to modern electric cars, Australia has evolved from an ambitious manufacturer to an import-dependent market with unique engineering competencies.
It all began in the late 19th century, when Herbert Thomson and Edward Holmes created the first Australian steam car. In 1901, Harley Tarrant built the first internal combustion engine car entirely manufactured in Australia. These early developments laid the foundation for the future industry, which began to develop rapidly in the 20th century.
Key players included Ford Australia (founded in 1925), Holden (produced the first mass-produced Australian car in 1948), and later Toyota, Mitsubishi, Nissan and others. In the 1970s, Australia was among the top ten largest automakers in the world, producing up to half a million cars a year. The local auto industry was characterized by the production of full-size sedans and utility models adapted to the harsh conditions of the continent. However, since the early 2000s, the industry has faced a number of challenges: rising costs, a limited domestic market, increased competition from Asian manufacturers, and a decrease in government support. In 2017, passenger car production in Australia was finally curtailed – Holden and Toyota plants were the last to close. Ford left a year earlier, in 2016.
Despite this, Australia has retained engineering and design centers, especially Ford and GM Holden, which continue to develop models for the global market. In addition, the country is actively developing the production of trucks (Kenworth, Iveco), as well as components and technologies for the auto industry – for example, carbon panels, autonomous driving systems and batteries.
With the transition to electric vehicles, Australia has received a chance for a new industrial revival. Rich reserves of lithium, nickel and cobalt make it a potential leader in battery production. The Australia Institute’s Carmichael Centre has already proposed a strategy to create a new automotive industry focused on electric vehicles and sustainable technologies. It is estimated that lithium recycling could be worth more than A$22 billion a year to the country. Today, Australia is less a car maker than a supplier of ideas, technology and resources. Its future in the automotive industry lies in high-tech solutions, sustainable supply chains and global integration. And while the Holden and Falcon era is a thing of the past, the country’s engineering spirit lives on – in labs, start-ups and new projects that could put Australia back on the global automotive map.
The Australian automotive industry is a story of ups, downs and transformations, reflecting the country’s economic and technological changes. From the first steam carriages to modern electric cars, Australia has evolved from an ambitious manufacturer to an import-dependent market with unique engineering competencies.
It all began in the late 19th century, when Herbert Thomson and Edward Holmes created the first Australian steam car. In 1901, Harley Tarrant built the first internal combustion engine car entirely manufactured in Australia. These early developments laid the foundation for the future industry, which began to develop rapidly in the 20th century.
Key players included Ford Australia (founded in 1925), Holden (produced the first mass-produced Australian car in 1948), and later Toyota, Mitsubishi, Nissan and others. In the 1970s, Australia was among the top ten largest automakers in the world, producing up to half a million cars a year. The local auto industry was characterized by the production of full-size sedans and utility models adapted to the harsh conditions of the continent. However, since the early 2000s, the industry has faced a number of challenges: rising costs, a limited domestic market, increased competition from Asian manufacturers, and a decrease in government support. In 2017, passenger car production in Australia was finally curtailed – Holden and Toyota plants were the last to close. Ford left a year earlier, in 2016.
Despite this, Australia has retained engineering and design centers, especially Ford and GM Holden, which continue to develop models for the global market. In addition, the country is actively developing the production of trucks (Kenworth, Iveco), as well as components and technologies for the auto industry – for example, carbon panels, autonomous driving systems and batteries.
With the transition to electric vehicles, Australia has received a chance for a new industrial revival. Rich reserves of lithium, nickel and cobalt make it a potential leader in battery production. The Australia Institute’s Carmichael Centre has already proposed a strategy to create a new automotive industry focused on electric vehicles and sustainable technologies. It is estimated that lithium recycling could be worth more than A$22 billion a year to the country. Today, Australia is less a car maker than a supplier of ideas, technology and resources. Its future in the automotive industry lies in high-tech solutions, sustainable supply chains and global integration. And while the Holden and Falcon era is a thing of the past, the country’s engineering spirit lives on – in labs, start-ups and new projects that could put Australia back on the global automotive map.