Winter was characterised by supply shortages from tsunami and earthquake ravaged Japan.
"Consumer confidence recovered so well in the second half of 2011 that I can announce to you today that motor vehicles sales in Australia for 2011 totalled 1,008,437," Mr Chalmers told reporters in Sydney.
It was shy of 2010`s total of 1,035,574 sales and down on the overall record, set in 2007, of 1,049,982 sales.
Mr Chalmers highlighted a growing trend towards smaller cars.
There were 41,429 Mazda 3s sold compared to 40,617 Holden Commodores.
Toyota's Hilux was the next best seller followed by its Corolla model and then the Holden Cruze.
Mr Chalmers said the automotive industry would be closely watching the introduction of the federal government's carbon tax, on July 1.
"We anticipate the cost to the Australian automotive industry will be around 30 to 50 million dollars - a cost that will be largely borne by the industry rather than consumers," he continued.
"More than 60,000 industry jobs rely on the successful management and implementation of a process to offset the carbon price-induced financial strain facing Australia's automotive manufacturers, and it is our intention to see this through."
Aussie's top ten cars 2011
* Mazda 3 - 41,429 sales
* Holden Commodore - 40,617 sales
* Toyota Hilux - 36,124 sales
* Toyota Corolla - 36,087 sales
* Holden Cruze - 33,784 sales
* Hyundai i30 - 28,869 sales
* Nissan Navara - 21,675 sales
* Toyota Camry - 19,169 sales
* Ford Falcon - 18,741 sales
* Mitsubishi Lancer - 18,717 sales
- AAP
