Automotive industry in Australia

A substantial car industry was created in Australia in the 20th century through the opening of Australian plants by international manufacturers. The first major carmaker was the Ford Motor Company of Australia and the first Australian-designed mass production car was manufactured by Holden in 1948. Australian manufacture of cars rose to a maximum of almost half a million in the 1970s (10th place in the World) and still exceeded 400,000 in 2004. Australia was best known for the design and production of 'large' sized passenger vehicles. By 2009 total production had fallen to around 175,000 and the Australian market was dominated by cars imported from Asia and Europe.

As of 2015 Australian-designed cars are made by General Motors subsidiary Holden, and Ford Australia, while Toyota Australia manufactures local variants of its international models, particularly the Camry. However, the Ford Australia engine and vehicle plants closed in October 2016 and the Holden and Toyota Australia factories are to close in late-2017. Ford of Australia's design and development facilities remain in operation and are expanding, leaving Australia as one of only a few countries with the capabilities to design and develop mass market cars from scratch.

Australian constructors were very active at the very beginning of both car and aircraft development and in some areas, ahead of their overseas counterparts. Due to the isolation of Australia, it was more practical for Australia to make their own cars.

The first true cars made in Australia were steam cars. The first of these steam cars, the Phaeton, was made in 1896 by Herbert Thomson and Edward Holmes of Armadale, Melbourne. It was exhibited in 1900 using the first pneumatic tyres made in Australia by Dunlop. The 5 horsepower single cylinder steam carriage which is now in the Institute of Applied Sciences, Melbourne, was reliable and durable enough to take Thomson and a friend 493 miles from Bathurst to Melbourne at an average speed of 8.7 mp/h.

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