SALES of four-wheel-drive utes have been the saviour of the car industry.

The popularity of utes has helped the industry shrug off the world's economic woes to post total sales for the year of 937,328 vehicles or about 57,000 units more than forecast and down just 7.4 per cent on 2008, the second highest vehicle market on record.

Figures from the Federal Chamber of Automotive Industries show that sales of 4WD utes were up 3 per cent last year, compared with a 9.4 per cent fall in passenger car sales and a 7.4 per cent fall in total vehicle sales.

The only other segment to record a positive result was the commercial van market.

The strength in ute and van sales was due in no small way to tax-relief incentives. Small businesses have been entitled to claim a 50 per cent bonus tax deduction for eligible vehicles ordered by December 31.

Total car industry sales in December were up 15.9 percent, continuing the recovery that first emerged in October.

The light commercial market surged in December, up by 48.5 per cent followed by the SUV market up 35.9 per cent and the passenger car market up 2.1 per cent.

However, heavy commercial vehicles were down 15.9 per cent, although this was an improvement on the 23.3 per cent annual drop.

Leading the charge in light commercials was the 4WD ute segment.

Sales of 4WD utes were up 57.9 per cent in December as buyers rushed to take advantage of the 50 per cent bonus tax deduction.

The bonus also helped lift December sales of vans by 53.7 per cent and two-wheel drive utes by 37.9 per cent.

FCAI chief executive Andrew McKellar said the bonus tax break restored confidence in the industry and stimulated additional demand.

"The final outcome for the year has surpassed the industry's original expectations by some 57,000 vehicles and a significant proportion of this additional volume can be attributed to the tax break," he said.