The carmaker is the third to pull out of Australia within 12 months. Last May, Ford announced it was closing its factories in October 2016, while General Motors confirmed in December that domestic Holden production would end during 2017.

In December, Toyota said the departure of General Motors would place “unprecedented pressure” on its supply chain, and that it was working with the government and stakeholders to assess whether it could continue manufacturing cars in Australia.

Toyota has built cars in Australia since 1959, and the Camry, Camry Hybrid and Aurion are still manufactured in its Port Melbourne, Victoria factory. It also has a technical centre in Notting Hill, Victoria, which opened in 2003, which will be reduced in size from 2017.

The announcement affects approximately 4,050 employees, and Toyota said it will support them finding other jobs as necessary. Toyota Motor Corporation Australia will continue to exist as a sales and distribution company.

Akio Toyoda, president of Toyota Motor Corporation president, said: ‘We believed that we should continue producing vehicles in Australia, and Toyota and its workforce here made every effort. 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.’