|
 Australia is a real force in the global automotive industry – generating revenue of at least $20 billion and employing close to 70,000 people.
Perfectly positioned for export opportunities to Asia, the industry is well regulated and supported by a strong domestic economy and highly educated workforce.
With exports worth $4.85 billion in 2006, the sector represents Australia’s sixth largest export earner and free trade agreements with Thailand, the US and potentially China are expected to enhance those export opportunities.
Australia also has a strong automotive aftermarket industry and supplies accessories and parts to both a global and domestic market.
The four major multinational motor vehicle producers in Australia are GM Holden, Ford, Toyota and Mitsubishi, with GM Holden and Toyota accounting for most of the vehicle exports.
These four companies produced 326,960 motor vehicles in Australia in 2006, which accounted for 65.5 per cent of industry revenue.
Locally produced cars include the Ford Falcon, Ford Territory, Holden Adventra, Holden Commodore, Mitsubishi Magna, Toyota Camry and Toyota Aurion. In addition, luxury cars such as the Fairlane, Statesman and Caprice are also assembled in Australia.
The rest of the industry’s turnover is shared by truck and bus manufacturers and to a lesser extent smaller engine manufacturers.
Export markets
Of the $4.85 billion in exports in 2006, motor vehicles accounted for $3.07 billion, while automotive components were worth $1.78 billion (Federal Chamber of Automotive Industries).
Meanwhile, revenue from intellectual property exports and dividends from offshore operations was at least $0.6 billion.
Cars engineered, manufactured and styled in Australia are exported mainly to the Middle East, North America, New Zealand and Korea, but also to South Africa, Japan and China. Australia’s component sector also supplies parts and systems for these markets.
The Middle East is Australia’s largest automotive export market, importing an estimated one million vehicles a year.
Exports were led by Toyota and helped by the success of Ford's Territory in South Africa and Holden's entry into China and South Korea. In addition, Australia’s global reputation for engineering, innovative technologies and design ingenuity means Australian expertise is increasingly being utilised overseas.
Engineers from GM Holden are providing advice to their US counterparts and technical services to GM companies in South East Asia, while engineers from Ford Australia are increasingly being sought in China for their experience and skills.
Meanwhile, quality cars, such as Holden’s successful Commodore platform, are used to build many variants for export and the Pontiac GTO has found a specialty market in the US.
These global success stories are underpinned by strong research and development expenditure with the support of the Australian Government.
Major players
Of the four major players in Australia, Toyota accounts for the majority of market share, with 21.5 per cent in 2006. This is closely followed by GM Holden, which achieved 20 per cent of market share. Ford accounted for 17 per cent, while Mitsubishi achieved six per cent.
Toyota
Toyota Australia was the biggest vehicle exporter in 2006, shipping 79,680 vehicles, mostly to the Middle East, but also to New Zealand and South-East Asia.
Toyota Australia’s biggest success story is the Camry, which it exports to the Middle East and New Zealand.
In October 2006, Toyota launched the Aurion in the large car segment. The company also exports components to Thailand.
GM Holden
The largest market for Holden exports in 2005 was the Middle East, where the Holden Commodore and Caprice, under the Chevrolet brand, are sold along with the Lumina Coupe and Sedan. Holden unveiled its VE Commodore in August 2006.
Holden exports the Monaro, under the Pontiac brand, to the US, and the Vauxhall Monaro to the UK. The company also exports the GM Daewoo brand to
Korea and the Buick Royaum to China (known as the luxury car Statesman in Australia).
Holden also exports four and six cylinder engines to GM affiliates in Asia and North America.
Ford
Ford has turned to South Africa and is expected to increase exports by $80 million with sales of its Territory SUV. Ford Australia will also undertake leadership in the design and engineering of a new global light commercial vehicle that will eventually be used for production in more than 80 countries worldwide. In addition, its centre of excellence will develop future Falcon and Territory programs for Australia and export markets.
Mitsubishi
Mitsubishi Motors Australia produces the Magna and Verada range of motor vehicles which are exported to Saudi Arabia, New Zealand and Taiwan.
Automotive aftermarket
In 2006, exports of automotive components were worth $1.78 billion and the major markets were the US, South Korea and New Zealand.
There are over 100 significant Australian component makers including major exporters such as Pacifica Group and Air International Group Limited.
Pacifica Group, which manufactures brakes, callipers, rotors, brake pads and linings exports mainly to the US, Thailand, Malaysia and Korea.
Air International Group Limited, which produces air conditioning systems, seating systems and steering components, has joint ventures in China and has won contracts with the US and China.
(Sources: IbisWorld Australia, Australia Autos Report, Federal Chamber of Automotive Industries)
For more information please visit:
www.aaaa.com.au – Australian Automotive Aftermarket Association
www.angvc.org – Australasian Natural Gas for Vehicles Council
www.sae-a.com.au – Australasian Society of Automotive Engineers
www.alpga.asn.au – Australian Liquefied Petroleum Gas Association
www.industry.gov.au – Department of Industry, Tourism and Resources
www.fapm.com.au – Federation of Automotive Products Manufacturers Association
www.mtaa.com.au – Motor Trades Association of Australia
www.tifa.com.au – Tooling Industry Forum of Australia
(Last updated: 18 Aug 2007)
|