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 Analysis Chapter
Motor vehicle manufacturers have struggled heavily 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 rise of imports has been caused by a shift in demand towards fuel-efficient vehicles, a high Australian dollar, tariff reductions and local manufacturers' inability to compete on price without 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