Demand breakdown: Industry revenue stalls as domestic vehicle manufacturing closes its doors

Over the past five years, the Motor Vehicle New Parts Wholesaling industry has encountered varying demand conditions from its two major markets (motor vehicle manufacturers and the service parts aftermarket). Demand from local motor vehicle manufacturers has declined significantly, as the major car manufacturers have wound down local operations. The lack of demand from motor vehicle manufacturers has negatively affected the industry, since operators typically wholesale parts for assembling vehicles. Industry revenue is expected to fall by 18.8% in 2017-18 to $8.0 billion, following the closure of the two major passenger vehicle manufacturers.Continued demand for aftermarket parts has partially offset industry revenue declines...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 13-18
-9.0%
Forecast Growth 18-23
Profit
Employment
13,517
Businesses
3,823
Market Share of Companies

Industry Threats & Opportunities

  • The winding down of local motor vehicle manufacturers has hurt industry demand and revenue
  • Demand from mechanics and smash repairers has increased over the past five years
  • The exit of unprofitable firms will provide a boost to average industry profit margins
  • Industry Report - Industry Investment Chapter

    The Motor Vehicle New Parts Wholesaling industry exhibits a low level of capital intensity. For every dollar paid as wages, an estimated $0.04 is spent on capital investment. Capital intensity is low because the industry requires a small amount of plant and equipment to wholesale motor vehicle new parts, with distribution rather than manufacturing the core business function.Larger operators are typically slightly more capital intensive, where investment in automated systems can be justified, owing to the greater throughput associated with operational scale. The smaller players tend to be more labour intensive, where stacking and ordering is more likely to be completed manually. The...purchase to read more.

    Additional Insights for the Motor Vehicle New Parts Wholesaling Industry

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

  • Access to the latest available and most efficient technology and techniques
  • Guaranteed supply of key inputs
  • Having an extensive distribution/collection network
  • IBISWorld analysts also discuss how external factors such as Demand from motor vehicle engine and parts repair and maintenance and Demand from motor vehicle manufacturing in the Motor Vehicle New Parts Wholesaling industry impact industry performance..

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    What's in this report

    What is the Motor Vehicle New Parts Wholesaling Industry?

    Industry operators are primarily engaged in wholesaling new motor vehicle and motorcycle parts and accessories. These include batteries, car audio systems and motor vehicle and motorcycle tyres. Parts and accessories are mainly sold to motor vehicle manufacturers, parts retailers and mechanics.

    Industry Products
  • Batteries
  • Tyres
  • Electrical components
  • Transmission and other parts and accessories
  • Engines
  • Industry Activities
  • Automotive battery wholesaling
  • Automotive air conditioning wholesaling
  • Car audio system wholesaling
  • New motor vehicle accessories and parts wholesaling
  • Tyre wholesaling
  • Motorcycle accessories and parts wholesaling
  • 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 engine and parts repair and maintenance
  • Demand from motor vehicle manufacturing
  • Number of motor vehicles
  • Real household disposable income
  • Consumer sentiment index

  • Current Performance
  • Participation and profit
  • Aftermarket trends
  • Industry challenges
  • Chart: Revenue Growth

  • Industry Outlook
  • Participation and profit
  • Aftermarket trends
  • Industry challenges
  • Table: Motor Vehicle New Parts Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Manufacturing
  • Motor Vehicle Dealers
  • Motor Vehicle Electrical Services
  • Tyre Retailing
  • Motor Vehicle Engine and Parts Repair and Maintenance

  • Key Selling Industries
  • Automotive Electrical Component Manufacturing
  • Motor Vehicle Manufacturing
  • Motor Vehicle Parts and Accessories Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing

  • Products & Services
  • Transmission and other parts and accessories
  • Engines
  • Electrical components
  • Tyres
  • Batteries
  • Chart: Motor Vehicle New Parts Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Automotive part and accessory retailers
  • Car dealerships and mechanics
  • Motor vehicle manufacturers
  • Chart: Major Market Segmentation for the Motor Vehicle New Parts Wholesaling 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 New Parts Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Motor Vehicle New Parts Wholesaling Industry

  • Industry Globalization
    Toyota Motor Corporation Australia Limited,
  • Table: Toyota Motor Corporation Australia Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Motor Vehicle New Parts Wholesaling 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 New Parts Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Aftermarket
  • This refers to parts sold to retailers and auto mechanics for use in existing vehicles. Aftermarket parts are replacement parts and are not used in the assembly of new vehicles.
  • Hybrid Vehicles
  • Hybrid cars usually refer to electric-hybrids, which run on an electric battery and a petrol engine. They are more fuel-efficient than a standard car.
  • Original Equipment
  • Components manufactured for motor vehicle manufacturers and their dealers, rather than for the aftermarket.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Motor Vehicle New Parts Wholesaling market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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
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    This report on Motor Vehicle New Parts Wholesaling:
    • 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 New Parts Wholesaling 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 New Parts Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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