Toyota is to end its vehicle and engine production in Australia by the end of 2017, affecting thousands of jobs.
It also announced plans to possibly scale down the operations of its development and technical centre there.
Toyota said high manufacturing costs had forced it to make a "painful decision".
Last year, Ford and General Motors' Holden unit also announced plans to stop producing cars in Australia. Toyota's exit will leave Australia with no more car manufacturers, effectively ending the local industry.
"We believed that we should continue producing vehicles in Australia, and Toyota and its workforce here made every effort," Toyota Motor Company president Akio Toyoda said.
"However, various negative factors such as an extremely competitive market and a strong Australian dollar, together with forecasts of a reduction in the total scale of vehicle production in Australia, have forced us to make this painful decision."
The Japanese auto giant, which first began making cars in Australia in 1963, said it "intends to provide the best support it can, including employment assistance" to those affected by the decision.
Australian exit
Toyota's decision comes despite appeals from Australian Prime Minister Tony Abbott, who has been looking to keep the carmaker operating in the country. Car manufacturers have been pulling out of Australia as the rising cost of doing business in the country has hit profits.
Last May, Ford said it would close its car lines in Australia in October 2016 with the loss of more than 1,000 jobs.
General Motors'Holden unit has also announced plans to stop production in 2017, affecting nearly 3,000 jobs.
Japan's Mitsubishi Motors sold its last Australian-made car in 2010. Last year, Toyota - the world's top global car maker by sales - found itself in a dispute with Australian car plant workers over proposed changes to their contracts.
This included changes to overtime requirements and the removal of additional allowances to trained first-aid officers and workers who make blood donations.
In December, Australia's Federal Court blocked a vote on the contractual changes, which Toyota said it would appeal against. The Australian government also said last month it would intervene in the dispute.
bbc.co.uk
Toyota said high manufacturing costs had forced it to make a "painful decision".
Last year, Ford and General Motors' Holden unit also announced plans to stop producing cars in Australia. Toyota's exit will leave Australia with no more car manufacturers, effectively ending the local industry.
"We believed that we should continue producing vehicles in Australia, and Toyota and its workforce here made every effort," Toyota Motor Company president Akio Toyoda said.
"However, various negative factors such as an extremely competitive market and a strong Australian dollar, together with forecasts of a reduction in the total scale of vehicle production in Australia, have forced us to make this painful decision."
The Japanese auto giant, which first began making cars in Australia in 1963, said it "intends to provide the best support it can, including employment assistance" to those affected by the decision.
Australian exit
Toyota's decision comes despite appeals from Australian Prime Minister Tony Abbott, who has been looking to keep the carmaker operating in the country. Car manufacturers have been pulling out of Australia as the rising cost of doing business in the country has hit profits.
Last May, Ford said it would close its car lines in Australia in October 2016 with the loss of more than 1,000 jobs.
General Motors'Holden unit has also announced plans to stop production in 2017, affecting nearly 3,000 jobs.
Japan's Mitsubishi Motors sold its last Australian-made car in 2010. Last year, Toyota - the world's top global car maker by sales - found itself in a dispute with Australian car plant workers over proposed changes to their contracts.
This included changes to overtime requirements and the removal of additional allowances to trained first-aid officers and workers who make blood donations.
In December, Australia's Federal Court blocked a vote on the contractual changes, which Toyota said it would appeal against. The Australian government also said last month it would intervene in the dispute.
bbc.co.uk
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