Sales Slide in Australia for Local Producers

Australia's demand for locally produced cars continues to skid as imported models gain market share, the Financial Times reports.

Sales by Ford and General Motors/Holden slumped to 48- and 20-year lows in 2014. Toyota, the only other local producer, saw its volume shrink 5%. The FT says the weak yen against the Australian dollars is further fueling a flood of lower-priced imports.

The pace of erosion for domestic producers appears likely to accelerate after import tariffs expired on Thursday. All three domestic producers plan to phase out manufacturing in Australia by 2017. In the meantime, the country has become perhaps the most competitive in the world.

The FT says some 67 brands and 350 models competed in the Australian car market last year. Analysts say those numbers are higher than in the U.S. or China, where the overall market is 15 times and 21 times as high, respectively.

Toyota, the market's most popular brand, has seen its market share drop from nearly 24% in 2008 to 18% last year. Analysts tell the FT that Ford and Holden sales have been hurt by aging designs and poor pricing strategies.