Industry Analysis & Industry Trends
Motor vehicle manufacturers have been completely defeated by import competition over the past five years. Production volumes have plummeted as consumer demand shifts 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 reductions over the past five years. New car sales declined in 2009-10 due to the global financial crisis, and though this trend has been reversed over the past five years, the subsequent growth was all in imported vehicle sales. Industry revenue is forecast to fall by a compound annual 1.5% over the five years through 2014-15, to reach $10.3 billion.
Local motor vehicle manufacturers have traditionally manufactured large cars... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Motor Vehicle Manufacturing industry is very highly concentrated, with the largest four players accounting for over 70% of industry revenue. Companies within the industry, particularly those manufacturing passenger vehicles, require a high critical mass of production to achieve economies of scale and be viable. With Australia representing a small market, there has only been room for a limited number of manufacturers.
The high Australian dollar and shifting consumer demand towards small cars has resulted in a lack of economies of scale for local motor vehicle manufacturers. Each major player has announced that they will exit the industry during 2016 and 2017... purchase to read more