Vehicle sales slowed significantly in August on continued high fuel prices, tough luxury car taxes and an increasingly weak dollar but despite the economic pressures on the industry, year-to-date sales are still ahead of last year’s record volume. The outlook for the rest of the year isn’t all roses, however, as the slowing trend is likely to continue due to local and global factors, but Toyota's strong sales continue to buoy the struggling industry.

Suzuki is launching a new Grand Vitara line-up, set to hit dealerships in September. The compact SUV will compete against the likes of the Honda CR-V and the Toyota RAV4 in its bid to gain a larger share of the Australian market, which was just 4% for the year to date.

Thanks to the success of the medium-sized Daewoo-built Captiva, Holden's share in the SUV market has been growing steadily since 2006. Now the company is hoping to catch up to its rival Toyota with the introduction of a new front-wheel-drive diesel Captiva that boasts class leading fuel efficiency figures and a cheaper base price.

A whole range of Prius-branded hybrids are expected to emerge from Toyota’s development labs over the next several years, and an all-new version of the original Prius sedan will lead the way. Seen recently for the first time in public, these spy images reveal that while much will stay the same in the design of the world’s best-selling hybrid car, several significant changes are also planned.

Tesla, the makers of the Lotus Elise-based Roadster electric vehicle (EV), has been known for some time to have a sedan in development as well, codenamed ‘Whitestar’. That car is expected to cost about half as much as the Roadster, priced at around US$100,000, and be built in much greater volume. Now Tesla’s chairman of the board, Elon Musk, is talking about the third car to bear the Tesla name, and it’s targeting a sub-US$30,000 price tag and production of about 200,000 units per year.

A new family of hybrids built under a Prius sub-brand is expected for Toyota’s next-generation of petrol-electric vehicles, but with the global debut of the first of these cars not due until mid next year solid details are hard to come by. The latest word indicates that Toyota is building a second dedicated hybrid model - meaning it will have no standard-engine counterpart - to offer a larger, more luxurious platform for the brand’s customers.

Even with record fuel prices and high interest rates, the auto industry is posting record sales figures and local leader, Toyota, remains firmly cemented at the head of the class. With a market share of 22.5%, the Japanese carmaker is clearly the dominant force in the market, thanks in large part to its well-balanced vehicle lineup and solid reputation for quality and reliability.

The Toyota Prius is a pioneer in the hybrid segment and remains the market leader for frugal petrol-electric cars both in Australia and worldwide. Toyota isn’t resting on its laurels, however, and is hard at work developing its third-generation Prius ahead of a global launched planned for next year.

The carmaker is also set to capitalise on its already strong environmental perception by adding optional solar panels to the new model.

Troubling economic times have hit many companies - especially carmakers - hard, tarnishing brand image and decreasing confidence in their fitness for the future. Toyota seems to have escaped untouched, however, with two recent surveys naming it the most respected company in the world and the most trusted automotive brand in Australia.