Melbourne, Australia (PRWEB) September 06, 2013
The Motor Vehicle New Part Wholesaling industry is confronting a range of negative influences on demand. IBISWorld industry analyst Andrei Ivanov states, “a downturn in car manufacturing has reduced demand for new car parts from major players and greatly hampered industry revenue growth.” However, more people are keeping their existing vehicles instead of trading them in for newer models which is creating demand for car parts due to increased maintenance requirements. As the retailing consumer holds a greater proportion of market share than the manufacturing segment, the consumer market stabilised the environment for car parts dealers. Overall, industry revenue growth is estimated to decline at an annual compound rate of 0.2% over the five years through 2013-14. Industry revenue is forecast to decrease by 1.4% to reach $13.7 billion in 2013-14.
A growing stock of motor vehicles on Australian roads has supported demand for new parts. However, the price of petrol has soared over the past five years which has changed the way car owners view their motor vehicle expenditure budget. According to Ivanov, “to save on fuel costs, Australians have started driving less. This reduces the wear and tear on vehicles, thereby putting downward pressure on demand for car parts and repairs.” Drivers have also postponed non-necessary repairs and the purchase of non-essential items to minimise the effect of high fuel prices. Substantial changes have affected the industry's core market segments. Motor vehicle manufacturers have become less important as their production has dropped, restricting sales to this market. As consumers look to prolong the life of their current vehicles, the retailing market segment has become increasingly important. Over the five years through 2018-19, slow demand from domestic car manufacturers and the lengthening of the replacement cycle will continue to hamper growth. Domestic motor vehicle manufacturers will still suffer from structural disadvantages compared with overseas manufacturers. Furthermore, high fuel prices will continue to shift travel habits away from motor vehicles which will hurt industry revenue.
The Motor Vehicle New Parts Wholesaling industry exhibits a low level of market share concentration. This can be explained by the fact that aside from the few major players, the industry is highly fragmented with wholesalers specialising in their geographic region. However, a shakeout in the industry is possible with evidence of consolidation occurring in some states as larger players acquire independent operators. The industry’s major players are GPC Asia Pacific Group and Toyota Motor Corporation Australia. For more information, visit IBISWorld’s Motor Vehicle New Parts Wholesaling report in Australia industry page.
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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 audio systems, as well as motor vehicle and motorcycle tyres. Parts and accessories are mainly sold to motor vehicle manufacturers, parts retailers and mechanics.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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