Industry Analysis & Industry Trends
The Automotive industry comprises a range of smaller industries, with performances varying across different stages of the supply chain. Overall, the industry has grown slowly but steadily over the past five years. Strong sales of new cars have supported motor vehicle wholesalers and dealers, while service agents have benefited from the increasing number of motor vehicles registered on Australian roads. However, local motor vehicle manufacturers have struggled, as high petrol prices over the four years through 2013-14 drove consumers towards smaller and more fuel-efficient imported vehicles rather than locally manufactured cars. As a result of these trends offsetting each other, industry revenue is forecast to rise at an annualised 1.2% over the five years through 2015-16, to reach $162.1... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry for the Automotive industry vary significantly depending on the type of firm. Manufacturers (of vehicles and parts) have very high barriers to entry. Car producers require a significant level of investment into large-scale production and machinery to support this. They also need to invest in R&D projects which tend to be quite costly. New entrants could struggle to carry out such a level of investment and have trouble accessing the latest technology. Component manufacturers require strong relationships and contracts with car producers, something that new entrants will find it difficult to establish.
Retailers have medium barriers to entry. Their main hurdle is being able to enter into franchises with manufacturers to carry brands that consumers want to buy... purchase to read more