Best selling new car

Car sales overall fell 5.2 per cent in August compared with the same month last year, with large cars recording the biggest slump, followed by declines for medium and large sports utility vehicles.

About 5000 Commodores were sold, 2600 of which were the new VE model, which went on sale on August 14.

The demand helped Holden reclaim the top sales spot from the Toyota Corolla, however Toyota's new model Camry outsold the Commodore, shifting about 2700 units in the month.

Both new versions went on sale halfway through the month.

Despite the success, sales of large cars continue to languish, with last month's 27 per cent fall year-on-year leaving the sector accounting for just 14 per cent of all vehicle sales, down from 17.5 per cent last year.

Holden spokesman Jason Laird was cautious about the VE figures. "It's a promising start but too early to be drawing any sort of conclusion," he said, adding that sales were "pointing in the right direction".

"Dealers are filling their inventories and we're getting close to our production rate of 620 a day," Mr Laird said.

There were 3700 Ford Falcons sold, down from 5800 last August, a fall of 20 per cent. Just over 1000 Mitsubishi 380s were sold, less than the company's prediction of 1500 a month when it changed the price in April.

But the new four-cylinder Toyota Camry has started strongly, with its 3023 sales in August representing a 45 per cent increase on August last year.

"The enthusiastic reception for the Holden Commodore and Toyota Camry is a great encouragement to the local automotive industry," Federal Chamber of Automotive Industries chief executive Peter Sturrock said.

The FCAI's official figures showed 81,661 new cars were sold last month, compared with 86,177 in August last year.

Sales were down 3.4 per cent so far this year, with 642,383 vehicles sold. The FCAI said the market remained on track for 980,000 sales this year.

The VE Commodore began recouping its $1 billion investment by reclaiming top spot after two consecutive wins by the Toyota Corolla.

Despite the new model, 630 fewer Commodores were sold than in August last year and Toyota remained the top-selling maker - with its 18,585 August sales giving it a 21.8 per cent market share, ahead of Holden on 11,819 and Ford on 10,323.

The figures came as it was suggested a decision on the future of Adelaide car-maker Mitsubishi could come as early as next month.

John Camillo, South Australian secretary of the Australian Manufacturing Workers Union, said Mitsubishi's Japanese parent company told its Australian subsidiary last October as it launched its make-or-break 380 model that it had 12 months to break even.

"Therefore, in October and November this year my understanding is that Mitsubishi Japan will have to make some sort of announcement," Mr Camillo said. "It really depends now on Mitsubishi Japan, whether they continue or don't."