The motor vehicle dealer industry in Australia continues to grow as the demand for and affordability of smaller, lower priced and fuel efficient vehicles are on the rise. However, dealers often receive a lower margin of profitability from these vehicles and are pressured by manufacturers to clear cars, often at a reduced price. (Source: Windle, P. IBISworld, Feb 2017)
Revenue for the motor vehicle dismantlers and used part wholesalers is being reduced due to safer, affordable new vehicles with crash avoidance and driver assistance technology. However, demand is being sustained due to increased dismantling and recycling of an ever growing and younger national car fleet. (Source: Burgio-Ficca, C. IBISworld, Sep 2016)
The Motor Vehicle Electrical Services industry suffered negative growth in the aftermath of the Global Financial Crisis as consumers delayed non-essential servicing on their vehicles, and delayed purchasing new vehicles until the economy improved. Things have bounced back very well from 2010-11 and the industry has enjoyed substantial growth since.
Continuing growth in the motor vehicle engine and parts repair and maintenance industry is largely due to consistent growth in the number of motor vehicles and increases in real household disposable income. New technology introduced into vehicles will require specialist skills and training and nonmanufacturer aligned workshops will be disadvantaged if government policy does not ensure access to repair information. (Source: Johnson, S. IBISworld, Mar 2017).
The motor vehicle new parts wholesaling industry has two major markets: motor vehicle manufacturers and the service parts aftermarket. The decline in activity and the impending closure of Australia’s largest local motor vehicle manufacturers (Toyota, Holden and Ford) has significantly reduced demand for new motor vehicle parts. However, as the Australian motor vehicle fleet continues to grow and disposable incomes increase, the demand for motor vehicle new parts is expected to continue. Regardless of this growth, it is projected that some industry players will be forced out of the industry. (Source: Wu, T. IBISworld. Jan2017).