The first Falcon sold in Australia was the XK series, introduced in September 1960. It was initially offered only as a four door sedan, in both Falcon and Falcon Deluxe trim levels. The XK was essentially a right hand drive version of the North American model, although local country dealers often included modifications such as heavy duty rear suspension (5 leaves) and larger 6.50 x 13 tyres.

The steering was light and the ride surprisingly good, on well-paved roads. The Falcon's 'king-size' drum brakes actually had less lining area than the Zephyr's, but they were stopping a car that was over 100 kg lighter, so were adequate. Whereas the North American model used an 'economy' 3.10 to 1 rear axle ratio, the Australian Falcon was built with a 3.56 to 1 ratio which better complemented the torque characteristics of the engine and yet still allowed a reduction in cruising rpm when compared with the Zephyr.

The station wagon, added to the range in November 1960, was shortened at the rear due to concern that the back of the car might scrape on rough roads and spoon drains.

Billed as being "Australian-with a world of difference", Falcon offered the first serious alternative to Holden, and became an instant success. Sales were aided by the contemporary FB series Holden being perceived as lacklustre and dated by comparison. A 170 cu in engine was introduced late in the model's life.

However, before long, XK sales suffered from complaints about the durability on rough outback roads (due chiefly to collapsing front ball joints, and adjusting shims dropping out of the front suspension, both problems inducing some rather severe front camber); the car earned the unflattering nickname "Foul Can" during this time.

The XK range was expanded in May 1961 with the addition of utility and panel van body styles, officially designated as Falcon Utility and Falcon Sedan Delivery respectively.