Industry Analysis & Industry Trends
The Motor Vehicle Manufacturing industry's performance has been dominated by import competition from a globalised market over the past five years. Local production volumes have fallen due to a range of factors, including the high Australian dollar over the start of the period, the signing of free trade agreements with major car manufacturing countries like South Korea and Japan, and the inability of local manufacturers to adapt to shifting consumer preferences. Consumer preferences have been moving towards both smaller fuel-efficient cars and cars that provide a combination of comfort and utility, such as SUVs. Importers benefited from the high Australian dollar at the beginning of the period as imported vehicles were made more affordable than locally manufactured vehicles... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Motor Vehicle Manufacturing industry exhibits a high level of market share concentration, with the four largest players accounting for an estimated 74.9% of industry revenue in the current year. Industry operators, particularly those manufacturing passenger vehicles, require high production volumes to achieve economies of scale and remain viable. As Australia is sparsely populated, it represents a small market and there has historically only been room for a limited number of vehicle manufacturers.
The strong Australian dollar over the early part of the past five-year period and shifting consumer preferences towards smaller and more fuel-efficient cars have weighed on the profitability of traditional local motor vehicle manufacturers... purchase to read more