UPDATE: Australians Embrace SUVs; Total New Vehicle Sales Exceed 1 Million

Sport utility vehicles are winning over Australia's drivers although the number of new passenger cars sold in one of the world's top 10 car-loving countries slipped in 2011, according to motor vehicle sales figures released Thursday.

While overall sales of passenger vehicles in 2011 fell by 5.5% to 559,314 vehicles from 2010, sales of SUVs rose by 3.8% to 244,136, the Federal Chamber of Automotive Industries said. Sales of cars and trucks reached 1,008,437 in 2011, the fourth time sales have broken the one million mark, down 2.6% on the previous year.

"SUVs are becoming the new family car," Chief Executive Ian Chalmers said at the release of the sales figures in Sydney.

"Despite being an incredibly volatile year, economically as well as environmentally, 2011 proved yet again to be a year in which Australians loved to buy cars," Chalmers said.

Australia has one of the highest rates of car ownership in the world, with Chalmers saying the island nation was ranked in the top 10.

The Australian Bureau of Statistics says on its website that in March 2009 there were more than 12 million registered passenger vehicles in Australia, or 552 passenger vehicles for every 1000 people.

Toyota Motor Corp. (TM) took out top spot for the number of cars sold in 2011 for the ninth year in a row with 181,624 vehicles sold, taking 18% of the market, down from the previous year's 214,718. GM Holden, owned by General Motors Co. (GM), was second and sold 126,095 vehicles, or 12.5% of the market, down from 132,923 vehicles, and Ford Motor Co. (F) came third selling 91,243 vehicles or 9% of the market, down from 95,284 vehicles.

Small cars also proved popular with sales rising 2.1% and Mazda Motor Corp.'s (7261.TO) Mazda3, which sold 41,429, toppling Holden's large Commodore, with 40,617 sales, for the title of highest selling model.

Australia's car industry, which hosts GM Holden, Toyota and Ford production facilities, has been hurt in recent years by cheaper imports and lower tariffs, with GM Holden's Australian head Mike Devereux last year calling for government "co-investment" in the sector.

Business information research firm IBISWorld said Wednesday it expects motor vehicle manufacturing in Australia to grow by 14.3% in 2012 to reach more than A$11.9 billion as the industry recovers from the global financial crisis.

"However, revenue is still expected to fall A$5 billion shy of pre-financial crisis levels," IBISWorld Australia general manager Karen Dobie said in a statement.

The firm said the value of exported vehicles is forecast to return to growth for the first time since 2009 and will be paramount to the growth of the industry, as the domestic market will struggle to support multiple large car manufacturers.

Chalmers expects new vehicle sales to exceed 1 million in 2012.

-By Gavin Lower, Dow Jones Newswires; 61-3-9292-2095; gavin.lower@dowjones.com,

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