Motor Vehicle New Parts Wholesaling in Australia Industry Market Research Report Now Updated by IBISWorld
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.
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 audio systems, 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.
Gavin Smith, IBISWorld, +61 396553838, [email protected]
Share this article