Motor Vehicle Parts and Accessories Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

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Demand for locally manufactured parts and accessories has continued to decline over the past five years. For this reason, industry research firm IBISWorld has updated its report on the Motor Vehicle Parts and Accessories Manufacturing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The high dollar has encouraged motor vehicle manufacturers to look overseas when sourcing parts and accessories, reducing industry demand.

Operators in the Motor Vehicle Parts and Accessories Manufacturing industry in Australia have endured difficult market conditions over the past five years. While positive consumer sentiment pushed new car sales to rebound following the global financial crisis, demand for locally manufactured parts and accessories has continued to decline. According to IBISWorld industry analyst David Whytcross, “shifting consumer demand towards imported cars and local motor vehicle manufacturers increasingly turning towards imported parts and accessories have led to a severe industry decline despite growth in exports.” Industry revenue is forecast to decline by 4.9% annualised over the five years through 2014-15. This includes a forecast fall of 6.1% in 2014-15, to $4.0 billion.

Over the past five years, high petrol prices have caused consumers to turn towards smaller, more fuel-efficient cars. Local motor vehicle manufacturers GM Holden and Ford have traditionally produced large cars such as the Holden Commodore and Ford Falcon. “Sales of imported new cars have risen over the past five years, while sales of locally manufactured vehicles have plummeted,” says Whytcross. The high Australian dollar has made local motor vehicle manufacturers even less price competitive, as imports have become significantly cheaper. The high dollar has also encouraged motor vehicle manufacturers to look overseas when sourcing parts and accessories, further reducing industry demand. The industry exhibits a low level of market share concentration. Major players include ARB Corporation Limited.

As a result of these factors, Toyota, GM Holden and Ford have announced that they will cease local manufacturing operations over the next five years. This will cause downstream demand for the products of the Motor Vehicle Parts and Accessories Manufacturing industry to nosedive. Many operators will be unable to continue with viable operations, causing the industry to shed revenue from its aftermarket sales because supplying exclusively to the aftermarket does not allow for profitable production runs. Operators that have developed export markets due to their technological innovation and are less reliant on local motor vehicle manufacturing have the best chance of survival.

For more information, visit IBISWorld’s Motor Vehicle Parts and Accessories Manufacturing industry in Australia report page.

Companies in the industry manufacture non-electrical motor parts and accessories. These companies may 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.

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IBISWorld industry Report Key Topics

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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Gavin Smith
IBISWorld
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