Why Australia should go left-hand drive

New-car prices could drop by as much as $2000 if Australia made a switch to left-hand drive.

Joining the majority of the motoring world by moving away from right-hand drive would also allow Australia to continue in the motoring mainstream through the 21st century, according to one of the country’s most successful automotive executives of the past 30 years.

He believes it could even spark a return to local manufacturing, with left-hand drive ute exports.

“Think of 36,000 pick-ups being built here for local consumption, then a whole lot more being exported at the current exchange rate,” says Nick Senior, who led the giant Inchcape Australia empire until his retirement last month.

Senior believes that the impact of the COVID-19 pandemic following the collapse of local manufacturing should put left-hand drive at the top of the automotive agenda.

“It’s timely and appropriate we have a debate on the merits of switching from right- to left-hand drive,” Senior told carsales.

He admits the switch would bring huge complications and costs, but says they would easily be outweighed by five key benefits.

These start with cheaper cars but include the early arrival of new technology for everything from autonomy to greener motoring, a more-competitive marketplace, greater choice of makes and models, and perhaps even a return to automotive manufacturing.

On the downside, there would be the cost of everything from freeway ramps and road signs to buses with doors on the other side, plus difficulties for some drivers making a switch (especially the elderly) and the scale of the work in such a big country.

“There aren’t a lot of precedents, as Sweden changed in 1967 and it cost $840 million to change in today’s money. Samoa changed 11 years ago and in the lead-up had a two-day holiday and three-day ban on alcohol sales,” Senior explained.

But it’s not all doom and gloom.

“It has been found that accidents and fatalities fall after a switch because people become extra cautious,” says Senior.

He emphasises that he is totally serious about the LHD push, not just dreaming or crystal balling.

“I think the question deserves some debate. There is a window ajar, so let’s explore it.

"There are significant advantages to a switch – but it would come at significant cost. And would the advantages outweigh the cost?

“The easiest thing to do is baulk at the cost and stick with what we have. But we need to look at the implications of that, longer term.”

Senior is one of the most-respected executives in Australian motoring and rose from journalism through public relations to head an operation with 1500 employees and more than $3 billion in annual turnover.

He is now taking time to assess the state of the motor industry and opportunities for the future, which is what took him down the road to left-hand drive.

The coronavirus then got him looking at the potential for some form of local motor manufacturing, from high-value components through to small-scale local assembly.

“This would be the only glimmer of hope for resuscitating car-making. COVID-19 has demonstrated that we still need manufacturing in some form in Australia,” Senior commented.

“We have to look at the long-term benefits to the consumer and the country.”

Senior highlights the potential cut in some car prices with lower-cost sourcing from major left-hand drive countries led by China and the USA, but warns that it would not be all cars and that it’s wrong just to focus on prices.

“Prices wouldn’t necessarily change on high-volume, globally-popular cars, especially those built in right-hand drive countries like Japan. But you would expect significant drops on vehicles that are presently converted to RHD primarily for the Australian market.”

Left-hand drive cars are sold in 165 countries, against only 75 (Japan, UK, India, Australia and mostly former Commonwealth countries) with right-hand drive.

The numbers skew even further to LHD on sales, with 80 per cent of the world’s annual production being for cars with the steering wheel on the left.

Senior joins many auto observers who worry that Australia will be left behind as Europe, China and America lead the way on technology including electric and autonomous vehicles.

He also highlights the potential impact from COVID-19.

“We have already seen GM globally withdraw from right-hand drive markets and the economic impact of COVID 19 on the auto industry means all manufacturers are re-visiting investment decisions.

“Participation in right-hand drive markets and production of a full right-hand drive line-up will be two of the decisions that will be revisited.

“It has also highlighted that having too much reliance on a single source can massively disrupt the supply chain when things go wrong. Switching to left-hand drive is the only way we will ever return to auto production.”

But Senior also sees huge potential benefits for consumers.

“We need choice. For instance, all the US pick-ups could be imported at significantly lower prices.

“The emergency vehicles sold in the US could be sold at a substantially lower price. We could have our V8s back at bargain basement prices.

“Again, there would be big benefits for middle Australia and I also think the bush would significantly be better off,” he stated.

What do you think? Is driving on the right side of the road a realistic and logical proposition, or just a flight of fantasy? Have you say in the comments below.