Australians continue to buy more bicycles than cars with the economic downturn, health issues and climate change driving sales, the Cycling Promotion Fund (CPF) says.
Figures released on Tuesday put total vehicle sales for 2008 at 1,012,64 while bike sales were 38 per cent higher at 1,401,675.
The CPF said it was the ninth consecutive year demand for bikes had outstripped vehicles.
"The economic downturn and the affordability of cycling is one of the key reasons for the continued surge in bicycle sales," CPF policy adviser Elliot Fishman said.
"The sluggish economy, coupled with concern over climate change, health, congestion and petrol prices have strengthened interest in cycling as an option."
Mr Fisherman said Australians who bought bikes were also using them more regularly with census figures showing more people riding to work.
He urged the federal government to consider boosting bicycle infrastructure, including bike lanes, as it looked to stimulate the economy.
"Bicycle infrastructure provides a logical and affordable solution and will pay increasing dividends over time by lowering transport costs and greenhouse gas emissions," he said.
"Helping to create bicycle-friendly cities is one of the most effective measures the federal government can take to help Australians fight climate change, the obesity epidemic, congestion and make our cities more liveable."
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