Automotive Parts and Accessories Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

Melbourne, Australia (PRWEB) May 04, 2012

Component manufacturers in the Automotive Parts and Accessories Manufacturing industry faced some challenges during the past five years. Being part of the automotive supply chain, the preferences of car buyers and woes of car manufacturers directly affect component manufacturers. According to IBISWorld industry analyst Aries Nuguid, The popularity of small imported cars grew, which put downward pressure on domestic motor vehicle production. Component manufacturers felt the brunt of the decline in motor vehicle production, particularly since they are small companies, ill-positioned to deal with sustained periods of falling demand. Ailing car manufacturers also increasingly used cheaper imported components at the expense of domestic components. To make things worse, the Australian dollar appreciated over the period, making imported car components accessories and parts even cheaper. A fall in tariffs has also contributed to the price competitiveness of imported components. With such poor conditions, industry revenue is expected to decline 5.8% over the five years through 2011-12 to reach $ 5.20 billion.

Revenue is expected to grow 5.7% in 2011-12 mainly due to a shortfall in the supply of components locally and recovering automotive industries across the globe. In Australia, motor vehicle production will be somewhat supported by higher consumer and business sentiment and by the switch to green cars. Nuguid adds, As consumers feel better about their finances and domestic car manufacturers start making green and small cars, demand for automotive parts and accessories will strengthen. This will boost demand for industry products, which will support industry revenue. However, overseas manufacturers will pose strong import competition, with penetration expected to increase. With import satisfying a greater portion of domestic demand, industry revenue will fall over the five years through 2016-17.

The Automotive Parts and Accessories Manufacturing industry portrays low market share concentration. The rest consists of smaller players that subcontract to these larger players. Concentration is expected to increase in the next five years. There is a growing trend for large firms (demand side) seeking significant reductions in the number of suppliers they work with to reduce internal costs and work with only the best. This may result in downstream companies reducing links with smaller firms. The government will also promote consolidation. The largest players in the industry are Arrowcrest Group, Pacifica Group and ARB Corporation.

For more information, visit IBISWorlds Automotive Parts and Accessories Manufacturing report in Australia industry page.

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IBISWorld industry Report Key Topics

Companies in this industry manufacture non-electrical automotive components, which include various car accessories, mufflers and child restraints. They do not manufacture engines or car seats. These companies may supply the motor vehicle assemblers or replacement parts (the aftermarket).

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

Globalisation & Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognised as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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