As the Motor Vehicle Body, Paint and Interior Repair industry tend to rely on vehicle accident repairs to generate revenue, new automobile safety systems and reduced vehicle accident rates have negatively impacted revenue creation. These negative impacts for industry are offset by the growing fleet of Australian registered vehicles and the higher discretionary income of consumers. Profitability is often reliant on business arrangements with insurance companies. (Source: Johnson, S. IBISworld. Dec 2016)
The motor vehicle dealer industry in Australia continues to grow as the demand for and affordability of smaller, lower priced and fuel efficient vehicles are on the rise. However, dealers often receive a lower margin of profitability from these vehicles and are pressured by manufacturers to clear cars, often at a reduced price. (Source: Windle, P. IBISworld, Feb 2017)
Revenue for the motor vehicle dismantlers and used part wholesalers is being reduced due to safer, affordable new vehicles with crash avoidance and driver assistance technology. However, demand is being sustained due to increased dismantling and recycling of an ever growing and younger national car fleet. (Source: Burgio-Ficca, C. IBISworld, Sep 2016)
Tyres are an essential part of the automotive industry and therefore, there will always be a market for them. The industry went into negative growth during the Global Financial crisis as consumers delayed spending but the need for tyres soon returned to strong positive growth following pent-up demand.
The Motor Vehicle Electrical Services industry suffered negative growth in the aftermath of the Global Financial Crisis as consumers delayed non-essential servicing on their vehicles, and delayed purchasing new vehicles until the economy improved. Things have bounced back very well from 2010-11 and the industry has enjoyed substantial growth since.