Top dollar driving sales to all-time high

NEW car sales are tipped to reach an all-time high in Australia this year

NEW car sales are tipped to reach an all-time high in Australia this year.

The prediction comes after the surging local currency led to a spike in the number of new vehicles purchased across the country last year.

Given the Australian dollar is expected to remain strong against the greenback and the yen for months, local industry experts believe more new cars may be sold this year than ever before.

Australians bought more than one million new cars last year, with foreign car sales outstripping the number of sales of locally made cars by more than six to one.

But while last year saw a 12.6 per cent rise in the number of imported vehicles purchased compared with 2009, the king of the Australian road was still the Holden Commodore, taking the title as the nation's most popular car - in terms of sales - for the 15th year in a row.

While still a small player in the Australian vehicle market, hybrid car sales rose last year with almost 9000 new models sold, up from 3040 in 2009.

The Toyota Hybrid Camry was the most popular green car last year, boosted by Canberra's $35 million manufacturing subsidy for the hybrid car industry.

In total, Australians bought 1,035,574 passenger cars, SUVs (off-road style wagons) and commercial vehicles last year.

The chief executive of the Federal Chamber of Automotive Industries, Andrew McKellar, said last year's strong sales reflected the recovery of the Australian economy and he predicted even greater sales this year: "We expect 2011 will be a year of consolidation with further improvement in the growth achieved last year."

Mr McKellar said several factors led to the jump in car sales last year. "The strength of the dollar, the fact we had a tariff cut at the start of 2010 and a strong supply into the market means brands have had to adjust price levels after the financial crisis," Mr McKellar said. "I think that means there is a lot of retail-level discounting going on."

Sales of 4WDs and SUVs surged by 25 per cent with a total 232,285 sold last year, and their popularity now accounts for almost one in four new-vehicle sales. Toyota topped the new car sales market for the eighth year in a row with 214,718, despite embarrassing recalls for some models.