New Report Says Australia’s Automotive Industry Is Here To Stay

The first comprehensive analysis in three years of the nation’s automotive industry has been launched by Senator Nick Xenophon at Parliament House, Canberra.

Directions in Australia’s Automotive Industry: An Industry Report 2017 was produced by the Victorian Automobile Chamber of Commerce (VACC), in partnership with the Motor Trades Association of Australia and its state MTA member organisations. The report reveals that car dealers operate on 2.6 per cent profit margins, the automotive industry employs 379,365 people and electric vehicles make up 0.01 per cent of the nation’s fleet.

At a time of unprecedented industry change, the report also uncovers the automotive industry’s economic contribution to the nation, business operating conditions, and provides detailed analysis of skills shortages and training requirements, along with insights into the direction automotive is headed.

VACC Executive Director, Geoff Gwilym, said a key finding in the report is that Australia’s automotive industry is here to stay.

“Passenger vehicle manufacturing will cease in October this year, but that is, and always has been, a small component of the entire automotive industry, which is still very robust with 69,365 businesses operating across the country,” said Gwilym.

Key findings:

   * The automotive industry contributes $37.1 billion to the Australian economy (2.2 per cent of GDP).
* Automotive repair and maintenance businesses account for 54.0 per cent of the automotive industry; the next largest sector is motor vehicle retailing at 8.3 per cent.
* Automotive vehicle and parts manufacturing accounts for 4.4 per cent of the industry.
* 96.5 per cent of automotive businesses are small and family run enterprises.
* 41.9 per cent of auto businesses are run by sole proprietors; 54.6 per cent employ 1-19 employees.
* The average age of Australia’s vehicle fleet is 10.1 years.
* 800,000 registered vehicles (excluding motorcycles) were scrapped between 2015 and 2016.
* Profit margins for repair/maintenance businesses in 2015/16 were 12.2 per cent; fuel retailing was 2.4 per cent.
* There are 69 vehicle marques operating in Australia, amongst the most in the world.