SYDNEY, June 19 (Xinhua) -- Mass produced cars are set to become lighter as an Australian company begins development of carbon fiber automotive parts.

Sydney based advanced manufacturing and Australian Stock Exchange (ASX) listed company Quickstep Holdings, which makes carbon fiber composites for the aerospace and defense industry, announced on Friday it will establish a dedicated automotive research division at Australia's Deakin University following the awarding of a 1.76 million Australian dollar (1.37 million U.S. dollar) grant.

Local media reported demand for carbon fiber composites is forecast to rise by about 23 percent per year across all industry sectors as governments around the world, including China and the United States, seek to reduce carbon emissions.

The automotive sector itself is forecast to grow worldwide by 50 percent per annul to 2020.

Quickstep manager director David Marino told local media he expects carbon fiber composites to be used in mass-produced cars that cost between 30,000 to 40,000 Australian dollars (23,302 - 31, 064 U.S. dollars).

"They (consumers) are seeing it on the planes they fly on and in the more advanced cars, but it will come downstream," Marino said.

Quickstep Holdings supplies parts to Northrop Grumman for use in the production of Australia's next-generation military combat aircraft, the F-35 Lightning II Joint Strike Fighter, and to Lockheed Martin for production of the C-130J Super Hercules military transport aircraft.