The automotive industry is one of the largest industrial sectors by revenue with activities that encompass the engineering, design, technological development, manufacturing, distribution, marketing, sales and maintenance of automobiles. For nearly a decade now, the manufacturing of automobiles has been undergoing radical change. The principle cause is the introduction of new production and management techniques, originally engineered by Toyota and subsequently applied by other Japanese car manufacturers. The car industry has been globalised since its inception in the late 1800s with ongoing fierce competition between countries to invent better cars and obtain finance in order to manufacture (Mahipat Ranawat, Rajnish Tiwari, 2009). Countries such as Australia imported or assembled cars from Europe or the USA. Cars are still often designed in one country and built from components that originated in a number of countries by a company based in a third country. Thus, it is for that very reason that the Australian automotive manufacturing industry is one of Australia’s most advanced industries. It is best known for the production of its large vehicles and the industry itself has a significant heritage and a devoted base of customers. There have been a vast number of companies that have produced cars over the years in Australia including British Leyland, Chrysler, Ford, Holden, Mitsubishi, Nissan, Renault, Rootes, Toyota and Volkswagen. Today, the industry consists of subsidiaries of multinational manufacturers of motor vehicles as well as hundreds of parts manufacturers, ranging from small Australian producers to companies that are also subsidiaries of very large multinationals. Car manufacturers have had to become more efficient and export-oriented as integration into the global system continues. Low production rates and the high Australian dollar have lead to the rise of unit costs (Alistair Davey, 2011). However, the industry faces an uncertain future within Australia. As it has been well documented, Ford will cease manufacturing operations by 2016 and Toyota and Holden soon following in Ford’s footsteps. In an industry where economies are very important in achieving cost competiveness, the current volume of sales has proven to be a real disadvantage. The principal reason for this result is that the automotive industry is foreign owned and therefore if the industry ceases base ground productions this will lead to a significant loss of capital to the Australian economy, which will not be redirected to other Australian industries (Gareth Hutchens, 2013). Thus it is important to highlight the impact of imported European and Asian cars on the ongoing and changing car manufacturing within Australia and the world from a general prospective. It is also important to highlight that these factors have benefitted the Australian automotive industry as well as corrupt its own production mass leading to massive repercussions on Australia alone. This essay will critically analyse how imported cars affect the automotive industry and the economy in Australia. The importation of cars in Australia has impacted . The imported car could bring a high index of the economy increasing for Australia. Tax is a significant part of one country’s economics, and the high taxes could support some of the country’s fiscal expenditure. The imported cars have had a high tax amount in not only Australia but also the range of worldwide; these taxes make up a part of Australia’s economic. For example, the Luxury car tax is levied at a rate of 33% on all vehicles, with a current GST inclusive value in excess of $59133 (CBFCA, 2006). These taxes of increasing imported car could bring a long