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A National Industry Sector Committee of the Motor Trades Association of Australia
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Industry Activity

The Australian Automotive Industry conducts and supports a wide range of industry based conventions, programs and activities.
 

Motor vehicle parts retailing in Australia

The motor vehicle parts retailing sector is continuing to grow steadily as disposable incomes rise and consumers have the choice of purchasing new vehicles and maintaining their current vehicle. As the number of Australian registered cars increase the demand for specialised motor vehicle parts also rises. (Source: Thomson, J. IBISworld. Aug 2017)

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motor vehicle wholesaling 2017 18

With the end of the local car manufacturing in Australia, the demand for imported vehicles will fuel growth within the motor vehicle wholesaling sector. Increased demand is also the result of higher discretionary incomes, positive business confidence and an increasing demand for imported vehicles (particularly smaller vehicles and SUVs). Intense competition between dealers and pressure from manufacturers to clear stock reduces consumer purchase costs and profit margins for industry operators. (Source: Thomson, J. IBISworld. Aug 2017).

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motorcylcle stat

Revenue for motorcycle dealers has stalled. Motorcycle sales are limited by the discretionary incomes of consumers and the diminishing recreational and leisure time available for riding. The used motorcycle market also limits the sales of new motorcycles. Demand for smaller cheaper motorcycles to be used as a substitute for less fuel efficient cars is increasing. This is regardless of the greater affordability of smaller, cheaper and more fuel efficient cars. (Source: Wu,T. IBISworld. Jun 2017)

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Passenger vehicle and car rental hiring image

Growth in the passenger and car rental industry is due to higher domestic and international tourist numbers. Increased tourism activity has been fueled by the weakened Australian dollar and growing wealth in Asia. Competition within the sector is high as consumers’ access price comparison websites. (Source: McGregor, W. IBISworld. Aug 2017)

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comparing automotive industry by states

Each state in Australia differs in the numbers and types of automotive activities being undertaken. They also differ in terms of industry growth and decline and business confidence.

All states experience skill shortages that are constraining growth. Skills shortages are largely the result of reduced apprenticeships and automotive training schemes.

NSW, ACT, Victoria, South Australia and Western Australia all experienced industry decline. Growth in Victoria and South Australia are restricted by reduced automotive manufacturing activities whilst Western Australia is affected by the reduction in mining activities. Advancements in automotive technology and increasing affordability of new cars are reducing demand for automotive repair services. Offsetting this, new car sales are growing which increases the size of the Australian vehicle fleet.

In comparison, Tasmania, Northern Territory and Queensland are experiencing positive growth and higher levels of business confidence. For Queensland and Northern Territory, growth can be contributed to a growing population and consumer demand. (Source: VACC 2017).

Source: Victorian Automotive Chamber of Commerce (VACC) (2017). Directions in Australia’s automotive industry: An industry report 2017.

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