Motor Vehicle Manufacturing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: September 2024
ANZSIC C2311Revenue
$5.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
7,131
Businesses
404
Wages
$XXX.Xm
Motor Vehicle Manufacturing in Australia industry analysis
The Motor Vehicle Manufacturing industry has suffered from a turbulent economy over the past few years. The COVID-19 pandemic disrupted the global supply chain and global semiconductor chip shortages have slowed production. Motor vehicle manufacturers have faced intense competition from low-cost imports. Continuous growth in Australia’s domestic freight task has supported motor vehicle manufacturers’ sales, yet the shrinking Australian motor vehicle market has eroded industry revenue. Motor vehicle manufacturers enjoyed robust sales in 2022-23 thanks to pent-up demand and recovering global supply chains. However, business confidence and consumer sentiment have since weakened, weighing on motor vehicle sales. Overall, revenue is expected to have decreased at an annualised 1.1% over the five years through 2024-25, to $5.4 billion.
Trends and Insights
- Imports constitute the bulk of domestic demand. Fierce competition encourages manufacturers to compete on quality by manufacturing specialised products to suit the Australian market.
- Truck sales have expanded thanks to continuous growth in Australia’s domestic freight task. Australian-made heavy-duty trucks with value-added features have shown robust sales.
- Victoria is the historic home of car manufacturing in Australia. Local manufacturers benefit from the Victorian workforce's extensive automotive expertise.
- Major companies like Volvo and PACCAR gain an advantage through economies of scale. These manufacturers can produce larger volumes, allowing them to reduce per-unit costs.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.1 % over the past five years, to reach an estimated $5.4bn in 2024.
Trends and Insights
An increased domestic freight task is accelerating truck sales
- Australia’s domestic freight task has escalated over the four years through 2024-25 after various COVID-19-related restrictions were lifted, fuelling robust truck sales.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Volvo and PACCAR will continue to dominate the industry
- Volvo and PACCAR are set to maintain their dominant position among truck manufacturers. Their superior resources and capabilities will support business expansion, enabling them to increase their profitability through economies of scale.
Biggest companies in the Motor Vehicle Manufacturing in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
PACCAR Australia | 1,448.8 | |
Volvo | 1,209.4 | |
Thales Australia | 141.3 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Trucks, Buses and Other motor vehicles. Trucks is the largest segment of the Motor Vehicle Manufacturing in Australia.
Trends and Insights
Truck demand benefits from solid growth in domestic freight task
- The truck segment includes medium to heavy-duty vehicles, with heavy vehicles having gross vehicle mass (GVM) of over 4.5 tonnes.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Motorcycle Dealers in Australia
Complementors
- Motor Vehicle Body and Trailer Manufacturing in Australia
- Motor Vehicle Parts and Accessories Manufacturing in Australia
- Mining and Construction Machinery Manufacturing in Australia
- Motor Vehicle Dealers in Australia
International industries
- Global Car & Automobile Manufacturing
- Global Heavy-Duty Truck Manufacturing
- Global Automobile Engine & Parts Manufacturing
- Car & Automobile Manufacturing in the US
- SUV & Light Truck Manufacturing in the US
Table of Contents
About this industry
Industry definition
The Motor Vehicle Manufacturing industry includes manufacturers that produce cars, light commercial vehicles; buses; vans; medium, heavy and special-purpose highway trucks and other motor vehicles for private and commercial use. This industry includes motor vehicle engine manufacturing.
What's included in this industry?
TrucksBusesCustom-built motor vehiclesAll-terrain vehiclesSpecial purpose military vehiclesCompanies
PACCAR AustraliaVolvoThales AustraliaPurchase this report to view all 4 major companies in this industry.
Related Terms
ELECTRIC VEHICLESELF-DRIVING VEHICLEPASSENGER MOTOR VEHICLE (PMV)Industry Code
ANZSIC 2311 - Motor Vehicle Manufacturing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Imports constitute the bulk of domestic demand. Fierce competition encourages manufacturers to compete on quality by manufacturing specialised products to suit the Australian...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Truck sales have expanded thanks to continuous growth in Australia’s domestic freight task. Australian-made heavy-duty trucks with value-added features have shown robust sale...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Victoria is the historic home of car manufacturing in Australia. Local manufacturers benefit from the Victorian workforce's extensive automotive expertise.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Major companies like Volvo and PACCAR gain an advantage through economies of scale. These manufacturers can produce larger volumes, allowing them to reduce per-unit costs.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Volvo and PACCAR are the two remaining major players in the Motor Vehicle Manufacturing industry. These companies have been expanding their market share by tailoring their pr...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of PACCAR Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Volvo's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Thales Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for PACCAR Australia, and factors influencing its performance in the industry
- Description and key data for Volvo, and factors influencing its performance in the industry
- Description and key data for Thales Australia, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Growing public awareness of fuel-powered vehicles’ detrimental effects on the environment presents a challenge for manufacturers. Motor vehicles produce large amounts of emis...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Manufacturers have invested in automation to temper wage costs over the long term. As manufacturers have increased their use of machinery throughout the manufacturing process...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Motor Vehicle Manufacturing industry in Australia in 2024?
The market size of the Motor Vehicle Manufacturing industry in Australia is $5.4bn in 2024.
How many businesses are there in the Motor Vehicle Manufacturing in Australia industry in 2024?
There are 404 businesses in the Motor Vehicle Manufacturing industry in Australia, which has grown at a CAGR of 3.3 % between 2019 and 2024.
Has the Motor Vehicle Manufacturing industry in Australia grown or declined over the past 5 years?
The market size of the Motor Vehicle Manufacturing industry in Australia has been declining at a CAGR of 1.1 % between 2019 and 2024.
What is the forecast growth of the Motor Vehicle Manufacturing industry in Australia over the next 5 years?
Over the next five years, the Motor Vehicle Manufacturing industry in Australia is expected to grow.
What are the biggest companies in the Motor Vehicle Manufacturing market in Australia?
The biggest companies operating in the Motor Vehicle Manufacturing market in Australia are PACCAR Australia, Volvo and Thales Australia
What does the Motor Vehicle Manufacturing in Australia include?
Trucks and Buses are part of the Motor Vehicle Manufacturing industry.
Which companies have the highest market share in the Motor Vehicle Manufacturing in Australia?
The company holding the most market share in Australia is PACCAR Australia.
How competitive is the Motor Vehicle Manufacturing industry in Australia?
The level of competition is high and increasing in the Motor Vehicle Manufacturing industry in Australia.
