AUTOMOTIVE PARTS AND ACCESSORIES
Australia
Overview
All figures are in millions of U.S. dollars
| x | 2004 | 2005 | 2006 |
| Total Market Size | 8515 | 9783 | 10183 |
| Total Local Production | 6583 | 7770 | 8088 |
| Total Exports | 1005 | 1390 | 1447 |
| Total Imports | 2937 | 3405 | 3543 |
| Imports from the U.S. | 741 | 858.9 | 893 |
The above figures are estimates and have been extrapolated from the World Trade Atlas December 2005 edition and are based on an average 5% increase as documented by the Australian Automotive Aftermarket Association (AAAA).
The above figures include data from the following HS Codes:
401110: NEW PNUEMATIC TIRES OF RUBBER FOR MOTOR VEHICLES
401120: NEW PNUEMATIC TIRES OF RUBBER FOR BUSES & TRUCKS
8409: PARTS FOR ENGINES OF HEADING 8407 OR 8408
8407: SPARK IGNITION OR ROTARY INT COMBUSTION PISTON ENGINES
8708: PARTS & ACCESS FOR MOTOR VEHICLES (HEAD 8701-8705)
There are four main automotive companies that dominate the Australian auto industry which currently has a retail industry turnover of US$90 billion. As of November 2006, Toyota remains the market leader holding 22.2 percent of sales, Holden with 15.2 percent, Ford with 12.1 percent. They were followed by Mazda (6.6 percent), Mitsubishi (5.9 percent) and Nissan (5.7 percent). The Federal Chamber of Automotive Industries advises that the forecast for 2006 is 970,000 vehicle sales.
(Federal Chamber of Automotive Industries, November 2006)
The automotive components and accessories market is valued at around US$5 billion. Including tires, engines and engine parts it is valued at almost US$12 billion. The largest proportion of this is in vehicle servicing which accounts for 35 percent followed by other parts and accessories with 33 percent. The remainder is made up of crash repair parts, oils, lubricants, additives and electrical accessories.
Growth in Australia’s aftermarket has averaged more than five percent over the past ten years. The aftermarket for replacement parts and accessories is a very significant element of Australian component producers' total sales. This part of the market is estimated to be worth almost US$5 billion and is split fairly evenly between local producers and imports. According to the World Trade Atlas 2005, the United States is the leading supplier, accounting for 22.95 percent of imports, while Japan is the second most important source of supply, with around 21.78 percent of the market or US$301 million.
The U.S.-Australia FTA has resulted in an immediate elimination of the 15 percent Australian tariff on U.S. automotive imports. This fact coupled with the larger size of the U.S. industry will likely contribute to a boost in U.S. exports.
Additionally, the economic stimulus expected from the FTA would likely lead to an improved Australian market for motor-vehicle parts. As a result, vehicle and parts producers may also reevaluate component-purchasing patterns to determine optimal sourcing, which could raise U.S. export volume. This growth potential however, may be limited by the modest size of the Australian market. Although the United States is Australia’s largest import source of these components, U.S. exports to Australia represent less than 2 percent of total U.S. exports of motor-vehicle parts (US$40 billion).
Best Prospects/Services
The Australian automotive market provides excellent opportunities for U.S. suppliers of both specialty and necessary aftermarket parts such as tires, carburetors, piston rings, fuel injection products, transmission and ignition products, lubricants and fuel pumps, body repair kits and products, along with automotive tools and aftermarket accessories. In general, high-quality and competitively priced accessories are always in demand. In addition, the Free Trade Agreement should improve the ability of U.S. exporters to compete with other suppliers, particularly from Asia, to capture a greater share of this growing market for other parts & accessories.
Standards
Before a road vehicle can be registered for the first time in Australia it must comply with the Federal Motor Vehicle Standards Act 1989. This applies not only to newly imported vehicles, but also used imported and locally manufactured vehicles. The Motor Vehicle Standards Act requires vehicles to meet the national standards that cover a variety of safety and emission requirements. These national standards are currently known as the Australian Design Rules (ADRs).
The ADRs specifically set out design standards for vehicle safety and emissions. They are developed through a consultative process involving government, industry, employee and consumer representatives. The ADRs are national standards and use United Nations vehicle categories and are harmonised to a considerable extent with international standards.
U.S. companies need also note that many performance and accessory related products in Australia are regulated on a state-by-state basis (e.g., aftermarket steering wheels, seating, lighting, exhaust, body kits and wings). The Australian Automotive Aftermarket Association advises that national standards are currently being developed.
Australian Quarantine and Inspection Service (AQIS) inspect incoming luggage and cargo including second hand automotive parts. Therefore some U.S. companies may also have to comply with the AQIS standards. (www.aqis.gov.au)
Opportunities
The best areas of opportunity in Australia’s auto sector for U.S. companies will be affected by sales of light cars, medium sized family cars and light sports utility vehicles and related accessories and replacement parts.
According to the Federal Chamber of Automotive Industries (FCAI), sales of light cars and light sports utility vehicles have helped the Australian motor vehicle market to a strong 2006 sales result. Furthermore, results from a local industry statistician show that the light car segment was one of the main drivers of the 2006 market with sales up by 18.8 percent in November 2006. This growth trend is as a result of spiking fuel prices together with a succession of rising interest rates.
The medium car segment also presents opportunities for U.S. manufacturers with the sector continuing to grow as a result of a swing in consumer preference for family sedans. In addition, the SUV Small segment where fuel economy is less of a concern also experienced growth providing opportunity for U.S. suppliers.
Resources
Trade Events:
AATF (Australian Auto Trade Fair)
Date: June 15-17, 2007
Location: Brisbane
Website: www.autotradefair.com.au
Australia United States Free Trade Agreement Business Group (AUSTA):www.austa.net
Australian Automotive Aftermarket Association: www.aaaa.com.au
Australian Customs Service: www.customs.gov.au
Department of Transport and Regional Services: www.dotars.gov.au
Federation of Automotive Parts Manufacturers: www.fapm.com.au
Federal Chamber of Automotive Industries: www.fcai.com.au
U.S. companies seeking information on the Australian automotive market are encouraged to contact Kate Wilkie at the U.S. Commercial Service in Melbourne