Motor Vehicle New Part Dealing in Australia Industry Market Research Report Now Updated by IBISWorld

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Demand for the Motor Vehicle New Part Dealing industry is being both positively and negatively influenced by difficult economic conditions. Revenue growth is being greatly hampered by a downturn in the car manufacturing industry, which is reducing demand for new car parts from major players. However, more people are keeping their existing vehicles instead of trading them in for newer models, and this is creating demand for car parts, as increased maintenance requirements are being pursued. As the retailing consumer holds a greater proportion of market share than the manufacturing segment, this is creating a more favourable environment for car parts dealers compared with car manufacturers. For these reasons, industry research firm IBISWorld has updated its report on the Motor Vehicle New Part Dealing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The current economic climate is more favourable for car parts dealers rather than car manufacturers

Demand for the Motor Vehicle New Part Dealing industry is being both positively and negatively influenced by current difficult economic conditions. Revenue growth is being greatly hampered by a downturn in the car manufacturing industry, which is reducing demand for new car parts from major players. However, more consumers are keeping their existing vehicles instead of trading them in for newer models, which is creating demand for car parts, as increased maintenance requirements are being pursued. According to IBISWorld industry analyst Aries Nuguid, “As the retailing consumer holds a greater proportion of market share than the manufacturing segment, these factors are creating a more favourable environment for car parts dealers compared with car manufacturers”. Over the five years through 2011-12, industry revenue will decline at a slow rate of 0.4% annually to $11.6 billion.

Due to the current economic slowdown, the industry has observed substantial change in its core market segments. Motor vehicle manufacturers, for example became less important in 2008-09 due to reduced demand for new cars, which restricts sales to this market. Nuguid adds, “As consumers look to prolong the life of their current vehicles, the retailing market segment will become increasingly important”. In 2011-12, revenue is expected to fall 2.1%, mainly due to sluggish demand from the aftermarket and lower prices. Over the next five years, industry revenue is expected to decline because of slow demand from domestic car manufacturers and the lengthening of the replacement cycle.

The top four players in the Motor Vehicle New Part Dealing industry are Exego Group, Robert Bosch, Toyota Motor Corporation, and GM Holden. The industry is estimated to have a low level of market share concentration because aside from the few major players, the industry is highly fragmented with several independent stores supplying the market. A shakeout in the industry is highly likely as independent operators are acquired by the larger players. However, the level of concentration in the industry is estimated to be increasing, as firms are becoming larger. Several stores are looking to branch out and create a strong market presence, and this has seen enterprises as a percentage of establishments decline over the past decade.

For more information, visit IBISWorld’s Motor Vehicle New Part Dealing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Companies in this industry wholesale new motor vehicle and motorcycle parts and accessories. These include parts such as batteries, accessories such as car radios, as well as motor vehicle and motorcycle tyres. Parts and accessories are mainly sold to motor vehicle manufacturers, parts retailers and mechanics.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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