Industry Analysis & Industry Trends
Motor vehicle manufacturers have been overwhelmed by import competition over the past five years. Production volumes have plummeted as consumer demand shifted away from locally manufactured vehicles, due to the greater fuel-efficiency of many imported vehicles. Importers have benefited from a high Australian dollar and tariff changes over the past five years. New car sales have steadily risen over the past five years, with growth attributable to imported vehicle sales. Industry revenue is forecast to fall by a compound annual rate of 2.9% over the five years through 2015-16, to reach $9.6 billion.
Local motor vehicle manufacturers have traditionally manufactured large cars... purchase to read more
Industry Report - Starting a New Business Chapter
The industry is characterised by a highly cyclical growth pattern, high fixed costs, tight profit levels and an excessive number of participants for the size of the market. Barriers to entry into the Motor Vehicle Manufacturing industry are formidable. Some barriers that need to be overcome by a new entrant include the cost of developing high-volume production facilities (to benefit from economies of scale) and a company's ability to gain access to technology from major global operators. Present incumbents include large multinationals that have considerable claims to new technology. With major global companies supplying vehicles with highly advanced technology, new entrants would require significant capital backing and engineering expertise to compete... purchase to read more