Infiniti to Depart From Australia by Late 2020 Due to Weak Sales: Report

News broke on Monday that Infiniti had notified its dealers and service centers of this decision, as reported by news.com.au. The company issued a same-day release outlining their retreat from Australia as “the next phase of a strategic plan aimed at improving efficiencies.”

Simplified, this indicates that Infiniti’s venture in Australia was a financial drain rather than a profit generator, as seen from the company’s subpar performance in the region. Peak annual sales for Infiniti in Australia were in 2016, with only 807 units sold in a market that saw 1,178,000 new vehicle purchases during that period, according to Cars Guide. Subsequent sales have continued to decline, with a reported total of only 4,274 units sold as of September 2019.

Infiniti’s exit from the Australian market is anticipated to follow a similar pattern to its departure from Western Europe, scheduled for earlier in 2020. The automaker plans to continue supporting customers in terms of parts, services, warranties, and used car sales, but new vehicle sales will cease. This strategy is expected to be replicated in Australia, with Infiniti affirming its commitment to fulfilling customer obligations.

Exiting Australia “will not impact Infiniti’s operations in Eastern Europe, the Middle East, and Asia, which are experiencing growth,” as stated in a company release quoted by Which Car. Infiniti aims to shift its focus to key markets like the United States and China following exits from Australia and Western Europe by introducing new models such as the QX55 coupe and broadening its electric vehicle lineup. However, even these markets face challenges, as Infiniti’s U.S. sales have been declining year-over-year since peaking in 2017, raising concerns about the brand’s overall performance.