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back to index backASIAtalk February,  2006

The Australian Automotive Industry


A small automotive sector by world standards, Australia punches well above its weight in product development and exports. The automotive industry is one of Australia's key manufacturing sectors and an important source of employment, and research and development. The survival and success of this industry can be traced to a historical necessity to develop products to suit the isolated continent. When trade liberalization forced companies to become more efficient, Australian companies had to maximize productivity in a low volume environment - in contrast to its competitors, who with high volume can rely on economies of scale. This along with the increasing exposure of this industry to international competition has seen it develop to where it is now competing successfully in global markets. There is also a strong inter-dependence between the car-makers and their suppliers, and strong linkages with the rest of the economy.

Market Overview

The Australian automotive industry consists of four large manufacturers of passenger motor vehicles (PMV) and variants, light commercial vehicles and sports utility vehicles which include - Toyota the market leader holding 21.1 per cent, Holden with 18.6 per cent, Ford with 14.2 per cent and the recently beleaguered Mitsubishi with 6 per cent. The remainder is made up of crash repair parts, oils, lubricants, additives and electrical accessories. The automotive components and accessories market is valued at around US$ 6 billion - including tyres, engines and engine parts which are valued at around US$ 12 billion. The largest proportion of this is in vehicle servicing which accounts for 34 per cent followed by other parts and accessories with 32 per cent.

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Source: EEPC India - GAI

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