New direction: Passenger vehicle manufacturing exits drive restructuring and revenue declines

Import competition from a globalised market has eroded the revenue of the Motor Vehicle Manufacturing industry over the past five years. Local production volumes have fallen due to a range of factors, including the signing of free trade agreements with major car manufacturing countries like South Korea and Japan, and the inability of local manufacturers to adapt to shifting consumer preferences. Over the past five years, consumers have increasingly favoured smaller, fuel-efficient cars and cars that provide a combination of comfort and utility, such as SUVs. The high cost of Australian production contributed to the two remaining domestic passenger vehicle manufacturers, Toyota and GM Holden, exiting the industry in October 2017, drastically altering the industry’s more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Import competition and the exit of passenger vehicle manufacturing has eroded industry revenue
  • The exit of the remaining passenger vehicle manufacturers has led to significant employment declines
  • The industry will undergo a significant transformation over the next five years
  • Industry Report - Industry Products Chapter

    The Motor Vehicle Manufacturing industry traditionally manufactured large passenger vehicles, such as the Holden Commodore and Ford Falcon. However, the composition of vehicles manufactured in Australia has changed significantly over the past five years due to the exit of Toyota and GM Holden from the industry in October 2017 and Ford in October 2016. As a result, all remaining product segments have increased as a share of industry revenue over the past five years.TrucksTrucks are classified by their general vehicle mass (GVM), with heavy vehicles considered to have a GVM of over 4.5 tonnes. Local manufacturers PACCAR Australia, Volvo Group Australia and CNH Industrial Australia manufacture Kenworth, Mack and Iveco trucks, respectively. Aus...purchase to read more.

    Additional Insights for the Motor Vehicle Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Motor Vehicle Manufacturing are:

  • Effective cost controls
  • Establishment of export markets
  • Having an extensive distribution/collection network
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and Domestic freight task in the Motor Vehicle Manufacturing industry impact industry performance..

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    What's in this report

    What is the Motor Vehicle Manufacturing Industry?

    Industry firms manufacture motor vehicles, including cars, light commercial vehicles, buses, vans, medium, heavy and special-purpose highway trucks and other motor vehicles. These vehicles are used for private and commercial purposes. Motor vehicle engine manufacturing is also included in the industry.

    Industry Products
  • Trucks
  • Buses
  • Industry Activities
  • Truck
  • Bus
  • Engine
  • Car
  • All-terrain vehicle
  • Other motor vehicle
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Domestic freight task
  • World price of crude oil
  • Business confidence index
  • Trade-weighted index
  • Motor vehicle tariff

  • Current Performance
  • Demand factors
  • Rising imports
  • Falling production
  • Chart: Revenue Growth

  • Industry Outlook
  • Structural shift
  • Industry participation
  • Import growth
  • Table: Motor Vehicle Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Motor Vehicle Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Wholesaling
  • Motor Vehicle Dealers
  • Road Freight Transport

  • Key Selling Industries
  • Automotive Electrical Component Manufacturing
  • Iron Smelting and Steel Manufacturing
  • Motor Vehicle Body and Trailer Manufacturing
  • Motor Vehicle New Parts Wholesaling
  • Motor Vehicle Parts and Accessories Manufacturing

  • Products & Services
  • Trucks
  • Other
  • Buses
  • Chart: Motor Vehicle Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Others
  • Dealerships
  • Freight operators
  • Export markets
  • Chart: Major Market Segmentation for the Motor Vehicle Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Motor Vehicle Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Motor Vehicle Manufacturing Industry

  • Industry Globalization
    Volvo Group Australia Pty Ltd, PACCAR Australia Pty Ltd, CNH Industrial Australia Pty Limited,
  • Table: Volvo Group Australia Pty Ltd - financial performance
  • Table: PACCAR Australia Pty Ltd - financial performance
  • Table: CNH Industrial Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Motor Vehicle Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Motor Vehicle Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hybrid Vehicles
  • Electric-hybrid cars that run on an electric battery and a petrol engine. These types of vehicles are more fuel-efficient than a standard internal combustion engine vehicle.
  • Passenger Motor Vehicle (Pmv)
  • A general description for vehicles designed for transporting passengers, excluding buses.
  • Sport Utility Vehicle (Suv)
  • A general marketing description for rugged vehicles that are similar to station wagons but are built on light-truck chassis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Motor Vehicle Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Motor Vehicle Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Motor Vehicle Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Motor Vehicle Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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