End of the road: Industry revenue has crashed as local car manufacturing stops

The Motor Vehicle Parts and Accessories Manufacturing industry has struggled due to the difficult operating environment for manufacturing over the past five years, particularly in the automotive sector. Consumer demand has shifted from locally manufactured cars to imported cars. Automotive parts dealers have replaced local motor vehicle manufacturers as the largest source of industry demand, as major companies such as Toyota and GM Holden have wound down and closed their manufacturing operations. Industry revenue is expected to decline at an annualised 9.8% over the five years through 2018-19, to $2.9 billion. This includes an anticipated drop of 7.1% in 2018-19, in line with demand declining from the Motor Vehicle Manufacturing industry...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 14-19
-9.8%
Forecast Growth 19-24
Profit
Employment
11,560
Businesses
924
Market Share of Companies

Industry Threats & Opportunities

  • Environmental concerns and costly fuel have prompted consumers to choose fuel-efficient cars
  • Profit has fallen due to higher input costs and falling demand from car manufacturers
  • Ongoing tensions between the industry's major trading partners may adversely impact the industry
  • Industry Report - Industry Investment Chapter

    The Motor Vehicle Parts and Accessories Manufacturing industry exhibits a low level of capital intensity. For every dollar paid as wages, an estimated $0.11 is spent on capital investment. Large-scale parts and accessories manufacturers that supply original equipment in bulk to motor vehicle manufacturers require a moderate level of capital investment to build sufficiently large production runs, but this has fallen over the past five years as firms have scaled back production in reaction to the decline of local car manufacturing operations.The industry's level of capital intensity has fallen slightly over the past five years. Importing competitors leverage their high production volumes and low wage costs, allowing them to supply motor vehicle manufacturers at lower prices. Ind...purchase to read more.

    Additional Insights for the Motor Vehicle Parts and Accessories Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Motor Vehicle Parts and Accessories Manufacturing are:

  • Access to the latest available and most efficient technology and techniques
  • Effective quality control
  • Undertaking technical research and development
  • IBISWorld analysts also discuss how external factors such as Demand from motor vehicle manufacturing and Number of motor vehicles in the Motor Vehicle Parts and Accessories Manufacturing industry impact industry performance..

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    What's in this report

    What is the Motor Vehicle Parts and Accessories Manufacturing Industry?

    Industry companies manufacture non-electrical motor parts and accessories. These companies supply parts and accessories to motor vehicle manufacturers or the aftermarket. The industry does not include the manufacture of engines, motor vehicle bodies, car seats, windscreens or any part entirely made out of plastic or fibreglass.

    Industry Products
  • Body exterior parts
  • Chassis parts
  • Interior and safety parts
  • Powertrain parts
  • Accessories
  • Other parts and accessories
  • Industry Activities
  • Car accessory
  • Child car restraint
  • Gearbox
  • Muffler and radiator
  • Roof rack
  • Seatbelt
  • Shock absorber
  • Suspension component
  • Transmission and clutch
  • Wheel
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from motor vehicle manufacturing
  • Number of motor vehicles
  • Trade-weighted index
  • Motor vehicle tariff

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Motor Vehicle Parts and Accessories Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Manufacturing
  • Motor Vehicle New Parts Wholesaling

  • Key Selling Industries
  • Iron Smelting and Steel Manufacturing
  • Legal Services
  • Plastic Pipe and Plastic Packaging Material Manufacturing

  • Products & Services
  • Powertrain parts
  • Chassis parts
  • Accessories
  • Interior and safety parts
  • Body exterior parts
  • Other parts and accessories
  • Chart: Motor Vehicle Parts and Accessories Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Automotive parts dealers
  • Motor vehicle manufacturers
  • Export markets
  • Chart: Major Market Segmentation for the Motor Vehicle Parts and Accessories Manufacturing Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    ARB Corporation Limited,
  • Table: ARB Corporation Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Motor Vehicle Parts and Accessories 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 Parts and Accessories Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Just-In-Time (Jit)
  • Form of supply chain management where parts are delivered at the time of production to reduce inventory costs.
  • Original Equipment
  • Components manufactured for motor vehicle manufacturers and their dealers, rather than for the aftermarket.
  • Tier 1 Suppliers
  • Direct suppliers of parts and accessories to car manufacturers. These components are known as 'original equipment'.
  • Tier 2 Suppliers
  • Companies that supply components to Tier 1 suppliers, that make up complete parts and accessories used in motor vehicles.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Motor Vehicle Parts and Accessories Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Parts and Accessories 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 Parts and Accessories 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 Parts and Accessories Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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