Motor Vehicle Parts and Accessories Manufacturing in Australia - Industry Market Research Report

Fuelled up: Rising motor vehicle manufacturing activity is forecast to drive revenue growth

Motor vehicle parts and accessories manufacturers are struggling with intensifying import competition. More robust demand for smaller, more fuel-efficient imported vehicles is constraining production orders. Following structural changes in the Motor Vehicle Manufacturing industry, most parts and accessories businesses no longer manufacture components for passenger vehicles. These factors have prompted downstream customers to source parts from foreign suppliers, leading to imports rising as a share of domestic demand. The COVID-19 outbreak and related weaker business demand also hampered investment in new commercial vehicles like buses, contributing to further declines in demand. Despite facing difficult operating conditions, demand from automotive parts dealers has supported manufacturers. Revenue has grown at an annualised 0.4% over the five years through 2022-23 and is expected to total $4.1 billion in 2022-23, when revenue will dip by an estimated 1.4%. Industry companies manufacture non-electrical motor parts and accessories. These companies supply parts and accessories to motor vehicle manufacturers or the aftermarket. The industry also includes the reconditioning of factory engine on a changeover basis, but excludes the manufacturing of automotive engines, motor vehicle tyres, car seats, windscreens or any part entirely made out of plastic or fibreglass. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.