Sales of new cars and trucks topped one million in 2022 after a year of “resilience and recovery” for Australia’s auto sector.

The Federal Chamber of Automotive Industries said 1,081,429 new vehicles were sold last year, a 3 per cent improvement on 2021, with demand exceeding supply.

FCAI chief executive Tony Weber said the pathway through the COVID-19 pandemic, microprocessor shortages and bottlenecks due to global shipping issues had created challenges for car makers and their dealer networks.

“While 2022 has been a year of resilience and recovery, 2023 is shaping up as one of the most significant in recent history, particularly in terms of the development of policies that set the direction for the future decarbonisation of the light vehicle fleet,” Mr Weber said.

“As the peak representative body for vehicle distributors, the FCAI has advocated for a fuel-efficiency standard for many years.

“We are optimistic that the federal government will take action in 2023 and introduce a standard that achieves the policy outcomes that lead to emission reductions while enabling Australians to drive the vehicles that they need and want.”

With sales of battery electric vehicles rising to 3.1 per cent of the total market, Mr Weber said beyond a fuel-efficiency standard, a technology mix, infrastructure investment and behaviour change initiatives were also needed to reduce emissions and create a cleaner fleet.

“We need to use the full range of low-emission technologies that are available and affordable for the majority of Australians, not just those who can afford premium vehicles,” he said.

Toyota was the top-selling company in 2022, with 231,050 vehicles retailed, ahead of Mazda on 95,718, Kia on 78,330 and Mitsubishi on 76,991.

Toyota also had the top-selling car with demand for its HiLux models hitting 64,391. The Ford Ranger was next best on 47,479 reinforcing Australia’s love affair with light commercial and sports utility vehicles.

Toyota’s Rav4 was third in the market with 34,845 units retailed.

-AAP