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. A decline in new car sales in 2009-10 as the global financial crisis continued was reversed over the past five years, but 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 be worth $10.3 billion.
Local motor vehicle manufacturers have traditionally manufactured large cars... purchase to read more
Industry Report - Industry Analysis Chapter
Motor vehicle manufacturers have struggled mightily over the past five years as low production volumes and growing import penetration have reduced both revenue and profit margins. New vehicle sales rose over the past five years following a trough at the onset of the global financial crisis, but consumers were purchasing imported cars rather than locally manufactured vehicles. The shift towards imports has been the result of a shift in demand towards more fuel-efficient vehicles, a high Australian dollar, tariff reductions and the inability of local manufacturers to compete on price due to their lack of economies of scale. Industry revenue is forecast to fall by a compound annual 1.5% over the five years through 2014-15, to total $10.3 billion... purchase to read more