The Australian car industry died because just like the British car industry, it couldn't compete with the better and cheaper Japanese alternatives.
Should I be forced to support the domestic industry's inferior products when I can get a better quality import at a lower price ? A small domestic market couldn't support the local industry by itself and the cars weren't good enough to compete abroad.
US car industry is also on it's knees despite the massive home market, it couldn't succeed on it's own turf because it didn't make the cars people wanted.
There may be a case for protecting fledgling industries early on but ultimately they must stand on their own feet.
Who wants to drive an XF Falcon and watch a CRT TV with VHS video when better is available.