Overview
The Australian automotive sector generates sales of approximately A$20 billion and employs close to 70,000 people. Comprised of foreign and indigenous companies, it represents Australia’s sixth largest export earner. In 2005, exports totalled A$5.1 billion, comprising vehicles exports of A$3.5 billion and components of A$1.6 billion. Revenue from intellectual property export and dividends from offshore operations was at least A$0.6 billion. Since then vehicle exports have remained constant but component exports have eased.
The Australian automotive industry is a centre for engineering for rear wheel drive vehicles and innovative technologies, niche volume design and manufacturing. This is underpinned by strong research and development expenditure with Australian Government support.
A relatively small and slowly decreasing domestic market means that vehicle and component manufacturers are looking to increase exports. Many of the aftermarket suppliers are also focused on overseas markets.
What are the key opportunities?
Key areas are in vehicle exports, some original equipment parts, Australian 4x4 products, performance parts, intellectual property and services.
There are opportunities in:
- Vehicles – two Australian manufacturers are strong exporters
- Original equipment components – integration with the global Industry is essential for this industry
- Globally competitive technology, especially in niche volume design and manufacturing
- Aftermarket parts and accessories, especially 4x4 products and performance parts
- Automotive services, such as product design, tooling, manufacturing expertise, engineering, testing and training
Some Australian components makers are marketing their low volume manufacturing expertise to companies in other low volume countries.
Others are increasing their size by growing their international operations.
Where are the key opportunities?
Priority markets with the greatest opportunities for Australian automotive products include:
- Saudi Arabia (vehicles and aftermarket)
- USA (components, aftermarket, performance, technology)
- UAE (vehicles and aftermarket)
- China (components, technology)
- Thailand (components)
Please see the list of industry country profiles for the automotive industry at the end of this overview.
How can we help you?
With a network of over 140 overseas locations in more than 60 countries backed by highly experienced and qualified staff, Austrade provides a number of dedicated and tailored services to Australian exporters.
Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au.
Useful contacts
Austrade’s automotive and advanced manufacturing team contacts
Hayden Williams
Tel: +61 3 9648 3182
Spiros Karamoutzos
Tel: +61 3 9648 3190
Email: advancedman@austrade.gov.au
Government contacts
Victorian Government - www.business.vic.gov.au
South Australian Government – www.southaustralia.biz
Department of Innovation, Industry, Science and Research – www.industry.gov.au
General industry contacts
Federation of Automotive Products Manufacturers – www.fapm.com.au
Australian Automotive Aftermarket Association – www.aaaa.com.au
Federal Chamber of Automotive Industries – www.fcai.com.au
Tooling Australia - www.tifa.com.au
Last updated: 19 Dec 2007
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