Running on empty: The exit of Australia's car manufacturers has sharply decreased revenue

Import competition from a globalised market has eroded the revenue of the Motor Vehicle Manufacturing industry over the past five years. Local production volumes have fallen due to a range of factors, including 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. Over the past five years, consumers have increasingly favoured smaller, fuel-efficient cars and cars that provide a combination of comfort and utility, such as SUVs. The high cost of Australian production contributed to the two remaining domestic passenger vehicle manufacturers, Toyota and GM Holden, exiting the industry in October 2017, drastically altering the industry's structure...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 13-18
-15.8%
Forecast Growth 18-23
Profit
Employment
9,146
Businesses
327

Industry Threats & Opportunities

  • Import competition from a globalised market has eroded industry revenue
  • The exit of the remaining passenger vehicle manufacturers has led to significant employment declines
  • The industry will undergo a significant transformation over the next five years
  • Industry Report - Industry Analysis Chapter

    The Motor Vehicle Manufacturing industry has struggled over the past five years. Growing import competition and increasing demand for fuel-efficient vehicles has reduced demand for most locally manufactured vehicles, contributing to a decline in industry revenue. The high comparative cost of Australian vehicle manufacturing, changing consumer preferences, free trade agreements, and manufacturers’ inability to capitalise on economies of scale have caused demand for imports to expand and the industry to shrink rapidly. Industry revenue is expected to fall at an annualised 15.8% over the five years through 2017-18, to $4.5 billion...purchase to read more.

    Additional Insights for the Motor Vehicle Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Motor Vehicle Manufacturing Industry are

  • Effective cost controls
  • Establishing motor vehicle export markets
  • Having an extensive distribution and collection network
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and Domestic freight task in the Motor Vehicle Manufacturing industry impact industry performance..

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    What's in this report

    What is the Motor Vehicle Manufacturing Industry?

    Industry firms manufacture motor vehicles, including cars, light commercial vehicles, buses, vans, medium, heavy and special-purpose highway trucks and other motor vehicles. These vehicles are used for private and commercial purposes. Motor vehicle engine manufacturing is also included in the industry.

    Industry Products
  • Trucks
  • Buses
  • Industry Activities
  • Truck
  • Bus
  • Engine
  • Car
  • All-terrain vehicle
  • Other motor vehicle
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Domestic freight task
  • World price of crude oil
  • Business confidence index
  • Trade-weighted index
  • Motor vehicle tariff

  • Current Performance
  • Demand factors
  • Rising imports
  • Falling production
  • Chart: Revenue Growth

  • Industry Outlook
  • Structural shift
  • Industry participation
  • Import growth
  • Table: Motor Vehicle Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Motor Vehicle Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Wholesaling
  • Motor Vehicle Dealers
  • Road Freight Transport

  • Key Selling Industries
  • Automotive Electrical Component Manufacturing
  • Iron Smelting and Steel Manufacturing
  • Motor Vehicle Body and Trailer Manufacturing
  • Motor Vehicle New Parts Wholesaling
  • Motor Vehicle Parts and Accessories Manufacturing

  • Products & Services
  • Trucks
  • Buses
  • Other
  • Chart: Motor Vehicle Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Freight operators
  • Export markets
  • Dealerships
  • Passenger transport and rental operators
  • Other
  • Chart: Major Market Segmentation for the Motor Vehicle Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Motor Vehicle Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Motor Vehicle Manufacturing Industry

  • Industry Globalization
    Volvo Group Australia Pty Ltd, PACCAR Australia Pty Ltd, Iveco Trucks Australia Ltd,
  • Table: Volvo Group Australia Pty Ltd - financial performance
  • Table: PACCAR Australia Pty Ltd - financial performance
  • Table: Iveco Trucks Australia Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Motor Vehicle Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Motor Vehicle Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hybrid Vehicles
  • Electric-hybrid cars that run on an electric battery and a petrol engine. These types of vehicles are more fuel-efficient than a standard internal combustion engine vehicle.
  • Passenger Motor Vehicle (Pmv)
  • A general description for vehicles designed for transporting passengers, excluding buses.
  • Sport Utility Vehicle (Suv)
  • A general marketing description for rugged vehicles that are similar to station wagons but are built on light-truck chassis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Motor Vehicle Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Motor Vehicle Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Motor Vehicle Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Motor Vehicle Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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